The challenges facing our planet are real. Incorporating environmental impact into investment decision making is not about sacrificing returns, it is about delivering more sustainable returns and in turn securing the future of our ecosystem.
We need to re-think how we, as individuals, consider the concept of social impact and most importantly our power as individuals to shape the society we live in. As investors, we can influence companies to deliver a positive societal impact.
The capital allocators of the world – financial advisers, investment managers, investment consultants and trustees – have a responsibility to exert their stewardship role more actively to hold companies to higher governance standards.
ESG Ireland® is an independent knowledge centre focused on delivering thought leadership, education and the latest developments on the integration of Environmental, Social and Governance (ESG) factors into responsible decision making frameworks, to assist companies, trustees, investors and all stakeholders in Ireland.
Our core purpose is to be part of the solution for a more secure and sustainable future, to make Ireland a beacon for other countries to follow. We can only achieve this by working together and so we invite interested stakeholders to be part of this collaborative effort . Be part of the solution. (Membership information)
Changing Regulatory Landscape
Globally, regulators continue to focus on ESG as the cornerstone of active stewardship. We have seen this recently in Europe with the IORPS II directive which has emphasised the need for pension scheme trustees to take account of ESG factors in the scheme’s investment process. Sadly, the Irish response has been timid. However, the expectation is that regulation will continue to become more stringent on how companies integrate ESG within their decision making frameworks.
Trustees and investors: The aim is to bring clarity to how ESG can be practically applied in the real world; to share insights on the mechanics of a responsible investment process, from the development of the philosophy and the design of the investment strategy, through to its implementation from the expanding universe of investment options.
Empower individuals: Positive as it is that younger generations are marching for governments to take action on climate change, the real power remains in the board rooms of the world. A more informed population on the role of business and investment is needed, so that individuals can better understand how their consumption and investment decisions have the potential to influence corporate behaviour.
A Stakeholder Approach: A collaborative effort from all stakeholders remains fundamental to sustainable development. We need to see all stakeholders fully integrate ESG into their respective decision making frameworks, with a focus on the long term to secure the sustainability of our ecosystem for future generations.
Incorporating Environmental, Social and Governance factors into decision making frameworks is fundamental to managing new and emerging risks. Taking a responsible approach to capital allocation and investing is not about sacrificing returns, it is about delivering more sustainable returns over the long term and in turn securing the future.