ESG, short for Environment, Social and Governance, is a term that has developed into a key acronym for asset management and investment organizations globally. In Europe EU is making ESG compliance monitoring mandatory for fund managers whose funds are in any way publicly traded or components of other vehicles such as pension funds. In short, ESG awareness and compliance is no longer a nice-to-have label in the marketing of funds, it’s a must have for the continued operation of any asset management organization.
Contrary to what tend to be a widespread opinion, ESG as a concept is far from new. According to Forbes (see article below) it was first coined in a UN backed initiative already in 2005, presented in the report Who Cares Wins. Following that, a number of different initiatives have unearthed to help industries, financial markets and even individuals to engage in, and to contribute to, a more sustainable world at large. It is probably fair to say that, as of now, it is the UN 17 Sustainable Development Goals, adopted by all United Nations Member States in 2015, that is the most comprehensive initiative and joint understanding to that end.
At Inzyon we are fully committed to the SDG’s, see our CSR program. ESG, in particular, we consider being the sustainable investor’s approach, and tool, to contribute to society’s development towards achieving the UN 2030 agenda for sustainable development. Also, the SDGs are one of the fundamental structures in our Inzyon Sustainability Classification Framework. Read more about Inzyon SCF here.
Below are a few links with introductory texts on ESG for those interested.