ESG = S is for Governance
Evidencing the fact that terminology & jargon can be difficult for the public; in our survey, few respondents saw ‘Governance’ as a key strategy (just 1%) but many of them then cited clear governance concerns that they want investment managers to recognise.
Ethical investors feel strongly about companies’ paying their fair share of tax on their British sales - 53% of clients said they would lobby to change this practice and 46% would avoid companies engaging in tax avoidance. That represents an overwhelming majority of investors who are engaging with this issue. 99% of our clients would not invest in companies engaging in tax avoidance even if it contributes to profitability.
97% of our clients said it was important that the companies they invest in are transparent about board members and decision making processes – in particular challenging extreme executive pay rises
Reinforcing the theme about activism - clients are keen to transform the food and farming industry through responsible investment – Instead of avoiding palm oil and intensive farming outright, clients were keen for their investments to improve efficiency in these industries and invest in positive practice such as the ‘Roundtable on sustainable palm oil’. 47% of our sample would only invest in firms who use palm oil from certified sustainable sources and 41% would only invest in businesses who use palm oil responsibly and actively engage in industry initiatives.
Click the link to read the full report. http://ethicalfutures.co.uk/insights/white-papers/ethical-futures-client-survey-report-2019.html