Gustavo Bernal Torres
Amplifying the “S” in ESG: Investor Myth Buster
The white paper is the result of a collaborative effort by the ESG Working Group, Refinitiv, International Sustainable Finance Centre (ISFC), White & Case, Eco-Age, The Mekong Club, and the Principles for Responsible Investment (PRI), convened by the Thomson Reuters Foundation.
Myth 1- Financial materiality: Social performance is less financially material than environmental performance
Myth 2- Starting point: It is too difficult to know how and where to start assessing social performance
Myth 3- Data: The “S” indicators are too hard to measure; there is no reliable and comparable data
Myth 4- Integration process: Qualitative surveys or questionnaires are the best method for tackling social issues and analysing the social aspects of performance
Myth 5- Relevance to investors: Integrating “S” indicators is only relevant for impact investors