Environmental, Social and Governance (ESG) has become a term of art within corporations, and a clear trend has emerged toward integrating ESG data into company value propositions. For example:
- The Sustainability Accounting Standard Board (SASB) is working on standard ESG disclosure guidelines for mandatory filings to the Securities and Exchange Commission (SEC), such as the Form 10-K and 20-F.
- The Global Initiative for Sustainability Ratings (GISR) seeks “to design and steward a global sustainability (ESG) ratings standard to expand and accelerate the contribution of business and other organizations worldwide to sustainable development.”
Socially responsible investing (SRI) is not new; in fact this year marks the 24th annual SRI Conference on Sustainable, Responsible, Impact Investing (formerly SRI in the Rockies). However, it seems to be picking up momentum in recent years. A few indicators of this trend: