White & Case LLP has joined Refinitiv and other leading industry partners as part of a working group formed with the aim of emphasising the importance of the 'social' criteria within ESG investing.
To demystify the many challenges surrounding integrating ESG metrics into the investment management process, the working group has published a comprehensive white paper, 'Amplifying the "S" in ESG: Investor Myth Buster'.
The social aspect of ESG, the "S", is becoming increasingly significant to investors and the public, while a growing number of companies are putting more business focus on addressing social themes such as inclusion, labour standards, modern day slavery in supply chains, health and safety, human capital, culture, and well-being. The challenges around clear global reporting standards and consistent global data are already well articulated but are more extensive in social themes.
The paper aims to debunk five common myths related to the "S" in ESG and provide practical calls to action on how to strengthen social metrics in investment management.
Five common myths included:
- Social Performance is Less Financially Material
- Knowing How and Where to Start Assessing Social Performance is Challenging
- Social Indicators are Hard to Measure
- Qualitative Surveys are the Best Method for Tackling Social Issues
- Integrating Social Metrics is Only Relevant for Impact Investors
The white paper has been produced in partnership with Refinitiv, the Thomson Reuters Foundation, International Sustainable Finance Centre (ISFC), Eco-Age, the Mekong Club, and the Principles for Responsible Investment (PRI) and Robert F Kennedy Human Rights (as observer participants).
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This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.
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