Why investors are driving ESG transparency in a material world

Money makes the world go round, especially when it’s green. Capital markets have embraced green finance and responsible investment practices because they understand that environmental and social risks are tangible risks that can have real-world impact on the financial returns of their investments. Indeed, as Madonna said so eloquently, “We are living in a material world.”

Institutional investors have a fiduciary duty to achieve long-term, stable returns for their beneficiaries. But obviously, there are no investment returns on a dead planet. Nowadays, there’s a widespread conviction among investors that mitigating risks resulting from material environmental, social and governance (ESG) issues is a precondition for financial stability, which enables them to meet the current and future needs of their beneficiaries. As a result, they are shifting their capital to investments that generate sustainable outcomes for our society, economy and the planet.

This is why in