Sindhu Krishna: When we talk about sustainability considerations, we’re talking about Environmental, Social and Governance factors. The financial materiality associated with these factors is important to investors, especially for the insurance or pension sectors, as long-term investors with fiduciary obligations.
When we say ‘integrating sustainability considerations’, we’re looking at materiality and the impact of these factors on the risk and returns of investment portfolios. Examples of this could be - Climate change, pollution, waste management, and biodiversity on the environmental side. On the social factors, it could be health and safety policies, human rights and the risks stemming from regulatory non-compliance with standards. Governance factors are broad and could be corporate governance, executive compensation, and Board composition, among others.
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