For most of its time as a leading initiative in the investment and business worlds, environmental, social and governance (ESG) has focused on the E, but the S is now taking more prominence with diversity, equity and inclusion (DEI) initiatives becoming a larger part of the conversation. Much like the challenges and obstacles environmental and climate-related initiatives faced when those standards were first being presented to investment managers and investors, social and DEI principles and standards are also facing hurdles. Understanding what DEI is and how it can be used in investment processes and within companies is the first challenge most people in the investment world will face.
“We view DEI as a component of the ‘S’ pillar of ESG, and DEI-related metrics are included in our quarterly monitoring and annual reporting on ESG-related performance,” says Sarah Borg-Olivier, chief operating officer with Instar Asset Management. “Social elements of ESG have historica