Climate Finance Week hears investors are increasingly likely to demand firms employ ESG principles
The launch of Ireland’s second annual Responsible Investment State of Play report by SIF Ireland at Dublin Castle was one of the many highlights of Climate Finance Week Ireland 2019 which ran from November 4th to 8th in venues across the country.
The report reveals that investors and regulators, who are increasingly conscious of the need to respond to the climate change crisis, are demanding that Ireland’s financial firms incorporate Environmental, Social and Governance principles into their operations.
ESG is a set of criteria used by investors to assess the sustainability of an investment and is now becoming a key factor in decisions around where capital should be invested. The SIF Ireland report is an annual measure of the responsible investment practices of the Irish financial services industry.
The report, supported by Irish Life, reveals considerable growth in Responsible Investment practices across leading Irish investment managers with 92pc having Responsible Investment policies which incorporate ESG frameworks (up from 81% in 2018).
In terms of key trends across the firms that responded to the survey, the report found that 79% operate a fund specific exclusion policy (increased from 63% in 2018) with the most commonly identified exclusions being tobacco and weapons (the production of); 75% of firms explicitly incorporate ESG considerations in (at least some) of their investment strategies; and 75% have a policy to positively advocate and encourage change in the companies in which they invest (increased from 50% in 2018).
SIF_Report_2019_FINALpdf Ireland’s Second Annual Responsible Investment State of Play Report 2019