Responsible investing & ESG: What gets measured gets managed

19/10/2021 / Liberty news

Most investors want to help the environment. But some companies have exaggerated what they do in this area, known as greenwashing. In response, investors are demanding more and better information.

To avoid accusations of greenwashing, companies must be fully transparent about their environmental impact and their actions to mitigate it.

Financial advisers and fund managers play a key role by scrutinising each company’s activities and reports; setting environmental targets, such as net zero carbon emissions; and holding companies to those targets.

Liberty and St. James’s Place aims to lead in this area, because it’s right and because we know our clients expect it.

To make sure companies ‘walk the talk’, we look for transparent measurement and communication of environmental, social and governance (ESG) practices and outcomes. This includes using accepted reporting frameworks and publishing the information in dedicated annual sustainability reports.

ESG disclosures from companies have got better in recent years through frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), which improves and increases reporting on climate-related issues; and the Global Reporting Initiative (GRI), which also covers social issues such as worker’s rights and corruption.

Many companies produce annual sustainability reports that detail all this information. This makes it easier for investors to access it quickly and monitor yearly progress.


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