Vigeo Eiris’ contribution to the European Commission’s public consultation on institutional investors and asset managers’ duties regarding sustainability.
Vigeo Eiris welcomes the opportunity to submit a response to the European Commission's public consultation on the fiduciary duties of institutional investors and asset managers with regard to sustainability.
In recent years, sustainability (also refered as “ESG” for environmental, social and governance) factors have increasingly been at the forefront of corporate scandals and failures, questioning companies’ risk management systems and challenging decisions of asset owners and managers.
The ESG ratings of companies and countries are evolving from being the outlook of a very responsible socially minded few to becoming a mainstream consideration in the financial analysis of company performance and a country’s ability to achieve sustainable economic growth.
As one of the forerunners of ESG analysis and rating of companies, Vigeo Eiris advocates since many years the importance that ESG factors play in the investment process. We consider that all the participants in the sustainable finance chain have specific duties to perform and fulfil.
Historically, investment due diligence was based on assessing the issuers’ creditworthiness. Now, assessing the capacity of issuers to mitigate risks and seize opportunities with regard to ESG is a reflection of their ability to innovate in order to secure higher returns for those invested in them…
To read more, download the complete Vigeo Eiris brief below.