Capital Group finds ESG hampered by lack of consistency in reporting

Study investigates barriers to ESG adoption

Some 53% of investors globally say they are held back from integrating ESG data into their investment decision-making process due to a lack of consistency in ESG scores, a study by Capital Group has found.

Capital Group's ESG Global Study 2021 surveyed 1,040 global institutional and wholesale investors across 16 different countries, finding that 27% of them also ranked difficulties in accessing information as the main cause of their slow ESG adoption. When asked what would increase their focus on sustainable investing, 49% pointed to the need for "greater transparency and consistency in fund reporting frameworks". The study found that 75% use active investment decisions to ensure ESG is integrated into their funds, with 67% of investors adding that integration is the preferred ESG imple...