The ESG ratings industry is in full transition. Driven by demand from institutional investors and the awakening of the retail investment market, asset managers increasingly consider environmental, social and governance (ESG) issues an integral part of their investment approach.
Gone are the days when ESG considerations were confined to a laudable but small group of socially responsible investors (SRI). In today’s world, the inclusion of ESG factors as part of a fundamental assessment to gauge potential risk and seize long-term financial performance is becoming common practice among mainstream asset managers.