Stock exchanges and sustainability
23 februari 2011
This week the Financial Times highlighted an initiative of institutional investors to pressure stock exchanges to include company reporting on sustainability issues in their listing rules by naming and shaming exchanges with a poor record (Pressure to name and shame bourses, February 21st).
This is another initiativeof the investor world that will stimulate companies to take sustainability reporting seriously. The Dutch Eumedion, which is a representative of the interests of institutional investors in the field of corporate governance, has taken similar steps.
“A lack of information as a result of limited or non-disclosure of environmental, social and governance data makes it difficult for long-term investors such as us to assess the wider ESG risks and opportunities of a company,” said Paul Abberley, chief executive of Aviva Investors in the Financial Times. See the Aviva Investor website for more information.
The long-term success of companies is determined by the way they deal with environmental, social and governance (ESG) challenges. Investors are more and more convinced of that, at least they say. Also within companies this thinking is becoming more and more mainstream. However, I believe most companies and investors are still only scratching the surface. I’m looking forward to the new season of General Shareholders’ Meetings. Both smart companies and investors will use this platform for pro-active and strategic dialogues on ESG. The quality of those discussion will tell a lot about the maturity of ESG and hopefully proof that the subject is truly here to stay.
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