Lack Of Universal Criteria Stops The Investors From Widely Entering Into SRI Market
Dailycsr.com – 02 September 2016 – The TIAA Global Asset Management recently conducted a survey, whereby the results show a growing interest among the investors in investments that are socially responsible. According to the survey poll, one third of the investors involved in it “made responsible investments”.
However, John Howell, reports a twist, whereby “only five percent of financial advisors polled said that their clients were investing in SRI funds”. Therefore, among other reasons one of them that create such disparate is the lack of “universally accepted set of criteria” for investing in “SRI market”.
Meanwhile, Morningstar turns out to be the “latest investment firm” that has offered a system of rating the “ESG factors of mutual funds”, whereby the firm used data “from research firm Sustainalytics”. Likewise, Morningstar came on board with “MSCI, FTSE, and Thomson Reuters”, other who have their “own sets of ESG criteria”.
In the words of John Howell, reporting for “3BL Media”:
“The situation is similar to that of the several frameworks for sustainable reporting, with individual guidelines provided by the Global Reporting Initiative, the Sustainable Accounting Standards Board, and the International Standards Organization, among others. With market pressure as a driver, we’ll be seeing commonly agreed upon standards for sustainable investment and reporting sooner rather than later”.
References:
ethicalperformance.com
However, John Howell, reports a twist, whereby “only five percent of financial advisors polled said that their clients were investing in SRI funds”. Therefore, among other reasons one of them that create such disparate is the lack of “universally accepted set of criteria” for investing in “SRI market”.
Meanwhile, Morningstar turns out to be the “latest investment firm” that has offered a system of rating the “ESG factors of mutual funds”, whereby the firm used data “from research firm Sustainalytics”. Likewise, Morningstar came on board with “MSCI, FTSE, and Thomson Reuters”, other who have their “own sets of ESG criteria”.
In the words of John Howell, reporting for “3BL Media”:
“The situation is similar to that of the several frameworks for sustainable reporting, with individual guidelines provided by the Global Reporting Initiative, the Sustainable Accounting Standards Board, and the International Standards Organization, among others. With market pressure as a driver, we’ll be seeing commonly agreed upon standards for sustainable investment and reporting sooner rather than later”.
References:
ethicalperformance.com
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