ESG reporting is ballooning: Is it only the lawyers who benefit? Michael Baker

ESG reporting is an organisation’s public communication of its performance in the areas of environmental, social and corporate governance. The purpose, presumably, is so that consumers, investors and non-profits can make better-informed decisions: respectively, which products to buy, which companies to invest in, and which companies to crucify or hold up as model citizens.

There has been an increasing demand for this kind of disclosure over the past few years and companies, nudged by regulators, have been responding by throwing more resources at it to satisfy the demand.

One might think, of course, that if ESG was so important to consumers and that their decisions were so biased toward firms with high ESG ratings, then investment funds that focus on those same firms would be getting higher cash inflows and higher returns than those that didn’t. This turns out not to be true. So what is going on?

ESG, SDG, CER, GRI, FSC, LCA, WELL  Read More 

Michael Baker