Investors turn to overlooked data sources to assess firms’ ESG credentials
A lack of publicly available information on companies’ ESG credentials is prompting investors to turn to overlooked sources to acquire data, new research shared exclusively with Morning Wire reveals.
Read more: Regulation and investors’ demands push fund managers towards ESG
Figures from MBH Corporation shows 89 per cent of UK based professional investors think employee satisfaction platforms will provide crucial information on the validity of firms’ adherence to good environmental and governance initiatives.
MBH Corporation said investors are combing through employee reviews published on sites such as Glassdoor and Vault for ESG information to evaluate whether to invest in a company.
Vikki Sylvester, chief executive of Acacia Training and executive director of MBH Corporation, said: “There is a clear need for companies to be in full control of their ESG reporting and to invest in ensuring that their credentials are properly reflected.”
“Investors are so hungry for information and will reference relevant websites for clear insights into companies.”
The research found that investors are reluctant to plough capital into SMEs due to a scarcity of ESG information.
89 per cent of professional investors think SMEs are relatively untapped sources of strong returns and many having strong ESG credentials.
Read more: FCA warns fund managers to improve their “poor-quality” ESG applications