ABSTRACT
Investors are an important influence on the manner in which companies manage the social and environmental impacts of their operations. Over the past decade in particular, investors have contributed to significant improvements in corporate governance, in the quality of corporate reporting on environmental, social and governance (ESG) issues (see, for example, the data in KPMG, 2015, p. 30), and in the manner in which companies manage social and environmental impacts. The fact that over 1,500 investment organizations—including over 300 asset owners, over 1,000 asset managers and over 200 service providers—have signed up to the UN Principles for Responsible Investment 1 is further evidence that investors are willing to actively encourage companies to more effectively manage their environmental and social impacts.
