Companies failing to act responsibly may lose investors, report says

• Published date: 08 November 2021
• Publication title: Irish Times: Web Edition Articles (Dublin, Ireland)

Almost half of investors surveyed for the accounting giant's report said they were willing to divest from companies that are not felt to be taking sufficient action on ESG factors.

About six in 10 also say the lack of action on ESG issues makes it likely that they would vote against an executive pay agreement, while a third say they have already taken this action.

The majority (79 per cent) confirm that the way a company manages ESG risks and opportunities is an important factor in their investment decision-making.

In-depth interviews

The findings are included in the PwC 2021 Global Investor ESG Survey, which represents the views of 325 investors – primarily active asset managers and analysts with investment firms, investment banks or brokerage firms, including some participants based in Ireland.

An additional 40 in-depth interviews were conducted globally with investors and analysts who have more than a combined $11.6 trillion (€10 trillion) assets under management.

Climate is the leading ESG consideration for investors surveyed, with a reduction in Scope 1 and 2 greenhouse gas emissions regarded as the most pressing issue.

Investment returns

But while most investors are likely to take action if...