ESG investing in 2021: Advancing data capture and impact measurement

Use of new tech key to meeting transparency rules

Adoption of ESG strategies by investors and corporations globally has risen significantly in recent years. Today, $17trn — or one of every three dollars professionally managed in the US — is invested in sustainable investment strategies, according to the US SIF Foundation's biennial Trends Report.

We can see many companies changing their practices because they understand the importance of ESG to their brands and operations. The critical, imminent nature of many ESG challenges such as climate change and inequality has become move evident today, and market competitive forces are driving innovation and change. The dramatic shift toward ESG investing, however, will not be sustained unless we address a fundamental weakness in the market infrastructure, or framework, for capturing and reporting ESG data that is decision-useful to investors. IW Long Reads: Avoiding bursting point -...