On 25 January, the Investment Association launched an industry wide consultation on sustainability and responsible investment. The consultation seeks the views of asset managers and aims to bring greater clarity to investors navigating the ESG landscape.
The consultation seeks industry views on key components of the ESG debate, including:
'Agreed standard definitions: Proposed definitions for the different sustainable investment approaches, including commonly used terms such as: environmental, social and governance (ESG) integration, impact investing, and negative screening, with the aim of agreeing an industry-endorsed set of standard definitions.
Development of a UK product label: A proposed voluntary UK product label designed to assist retail investors and their advisers to easily identify funds which have adopted a sustainable investment approach. The label would also draw attention to the sustainability and responsible investment expertise within the UK.
‘Stock-take’ of reporting frameworks: A review on reporting frameworks used by asset managers to disclose how they embed ESG considerations into their investment process, and the impact that their investments have had on wider sustainability indicators.
Members of the Investment Association are invited to respond to the consultation by 1st March 2019.