As sustainable investment is becoming part of the international agenda, companies are under pressure to ensure that they implement the right strategies.
Black lock — With the world’s largest asset management company Pioneer of sustainable investment — Last week, you were accused of inconsistent ESG agenda. ESG stands for Environmental, Social, and Corporate Governance and refers to a set of standards that measure a company’s performance in areas such as carbon emissions and social responsibility.
The investment company was found to be associated with an Indonesian palm oil company and reiterated concerns about possible blind spots in the ESG investment process. However, according to Singapore-based consultancy Asia Research and Engagement (ARE), there are several steps companies can take to ensure that ESG strategies are considered and consistent.
Benjamin McCarron, founder and managing director of ARE, told CNBC on Tuesday. It can be an internal policy or an external investment.
Next, leaders need to plan their time goals to achieve these goals.
“It’s not good to have a commitment in 2050 and expect all changes to happen in 2049, so we need a plan to be implemented and progress over time,” he said.
Aceh workers harvest palm oil fruits in the palm oil plantation area in Kuta Macmur, North Aceh Regency.
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Next, you need to implement a transparent reporting system and implement appropriate governance to ensure that your reports are adhered to.
Finally, the business needs to start now. “Don’t be too late,” McCarron said.
This advice comes from growing interest in ESG investing. In the first quarter of 2021, investment in sustainable funds hit a new high of nearly $ 2 trillion, recording fourth-quarter profits. According to Morningstar.
However, investors still need to be careful to ensure that the company is behaving as claimed. Institutional investors need to engage in dialogue, exercise voting rights and implement shareholder proposals to ensure that companies achieve their set goals.
in the meantime. McCarron said it was much easier for individual investors. “You can have the value you want. If you don’t want to own something, don’t own it.”
The consultant will outline the steps to achieve a socially responsible goal
Source link The consultant will outline the steps to achieve a socially responsible goal