Why a New Direction in ESG Is More Vital Now Than Ever

ESG and socially responsible investing has been profoundly impacted by the COVID-19 pandemic as investors are now forced to take a more granular view of non-financial risk exposures. This includes the examination of corporate governance through the lens of public health, climate events and shifting consumer demands in a low-carbon economy. However, a universally accepted approach to ESG methodology, measurement, benchmarking, and reporting has still not been established. As a result, there are still few safeguards to prevent greenwashing and other forms of disinformation. In a post-COVID world, how are capital allocators and fund managers working to establish industry standards for ESG? Furthermore, how are investors prioritizing ESG factors in the investment process across asset classes?