Today I’m going to break a little from my general forum and offer a link to a new report that has been published by the Canadian Institute of Chartered Accountants (CICA) called “Environmental, Social and Governance (ESG) Issues in Institutional Investor Decision Making” that was published last week.
The reports author’s are Julie Desjardins and Allan Willis. In the preparation of this report, during the last quarter of 2009, they interviewed 15 mainstream institutional investors and 2 service providers to investigate how those investors use ESG information in their decision-making. The report offers a great overview of what’s happening in Canada in the field of ESG investing, how investors are using the information, regulatory issues for Canadian companies and various actions that can be taken by the Canadian Securities Administrators’ and Stock Exchanges. They also offer suggestions on how industry associations, academic institutions, professional bodies and non-governmental groups could assist capital market’s advancement in this field.
All in all a great overview document for anyone interested in learning more about why institutional investors increasingly care about ESG issues and why and how they’ll be looking for more transparency and disclosure. For corporations, it’s a great overview of the issues that lie ahead.