1 Sustainable investment funds just surpassed $1 trillion for the first time on record, CNBC, August 11, 2020.
2 Jon Hale, The Number of Funds Considering ESG Explodes in 2019, Morningstar, 30 March 2020; and the Index Industry Association’s Third Annual Global Index Survey, which found 13.85% growth in ESG indexes in 2019 (see www.indexindustry.org).
3 See Larry Fink, Chairman and CEO, BlackRock, letter to CEOs, A Fundamental Reshaping of Finance, January 2020, and BlackRock Investment Stewardship Engagement Priorities for 2020, March 2020. See also Cyrus Taraporevala, President and CEO, State Street Global Advisors, CEO’s Letter on our 2020 Proxy Voting Agenda, January 2020. See also the Principles for Responsible Investment.
4 “The Next Wave in Shareholder Activism: Socially Responsible Investing,” The Wall Street Journal, 8 March 2020. Also, for insights on how EY’s market engagement reflects current ESG investing trends, see How will ESG performance shape your future? Why investors are making ESG an imperative for COVID-19 and beyond, EY Climate Change and Sustainability Services, Fifth global institutional investor survey, July 2020; and 2020 proxy season preview: What investors expect from the 2020 proxy season, EY Center for Board Matters, January 2020.
5 See Are you reframing your future or is the future reframing you? Understanding megatrends will help you see opportunities where others don’t, Megatrends 2020 and beyond, ey.com, 2020.
6 For more on the concept of dynamic materiality, see Statement of Intent to Work Together Towards Comprehensive Corporate Reporting, Summary of alignment discussions among leading sustainability and integrated reporting organizations CDP, CDSB, GRI, IIRC and SASB, September 2020.
6 See also “Social-Impact Efforts That Create Real Value,” George Serafeim, Harvard Business Review, September-October 2020 issues, “Making Sustainability Count: How to Improve Environmental, Social and Governance (ESG) Performance.”
7 The Global Risks Report 2020, World Economic Forum in partnership with Marsh & McLennanand Zurich Insurance Group, 2020.
8 Enterprise Risk Management: Applying enterprise risk management to environmental, social and governance-related risks, Committee of Sponsoring Organizations of the Treadway Commission and World Business Council for Sustainable Development, October 2018.