IA proposes definitions for ESG integration
29 January 2019 London
Image: Shutterstock
The Investment Association has proposed definitions for the different sustainable investment approaches, including commonly used terms such as environmental, social and governance (ESG) integration, impact investing, and negative screening, with the aim of agreeing on an industry-endorsed set of standard definitions.
This follows their request for agreed standard definitions following their launch of the first industry-wide consultation on sustainability and responsible investment.
The consultation seeks the views of asset managers on key aspects of sustainability and responsible investment aiming to bring greater clarity to help savers and investors navigate and better access to this growing feature of the investment management industry.
As well as agreed standard definitions, the consultation will also cover the development of a UK product label.
This is a proposed voluntary UK product label designed to assist retail investors and their advisers to easily identify funds, which have adopted a sustainable investment approach.
The label would also draw attention to the sustainability and responsible investment expertise within the UK, IA revealed.
Additionally, a review on reporting frameworks used by asset managers to disclose how they embed ESG considerations into their investment process, and the impact that their investments have had on wider sustainability indicators will also be covered in the consultation.
Chris Cummings, chief executive of the Investment Association, said: “Social and environmental change is happening faster than ever before. The asset management industry is at a critical juncture in embracing sustainability as a defining feature of the investment landscape.”
“With sustainability and responsible investment becoming an increasing priority for today’s investors, this consultation is an important step forward in gathering the views of the industry with the ultimate aim of bringing greater clarity to savers.”
“As significant investors, it is our role to help today’s investors achieve financial as well as their environmental and social goals.”
This follows their request for agreed standard definitions following their launch of the first industry-wide consultation on sustainability and responsible investment.
The consultation seeks the views of asset managers on key aspects of sustainability and responsible investment aiming to bring greater clarity to help savers and investors navigate and better access to this growing feature of the investment management industry.
As well as agreed standard definitions, the consultation will also cover the development of a UK product label.
This is a proposed voluntary UK product label designed to assist retail investors and their advisers to easily identify funds, which have adopted a sustainable investment approach.
The label would also draw attention to the sustainability and responsible investment expertise within the UK, IA revealed.
Additionally, a review on reporting frameworks used by asset managers to disclose how they embed ESG considerations into their investment process, and the impact that their investments have had on wider sustainability indicators will also be covered in the consultation.
Chris Cummings, chief executive of the Investment Association, said: “Social and environmental change is happening faster than ever before. The asset management industry is at a critical juncture in embracing sustainability as a defining feature of the investment landscape.”
“With sustainability and responsible investment becoming an increasing priority for today’s investors, this consultation is an important step forward in gathering the views of the industry with the ultimate aim of bringing greater clarity to savers.”
“As significant investors, it is our role to help today’s investors achieve financial as well as their environmental and social goals.”
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