ESG – Environmental, Social and Governance is an abbreviation increasingly on the rise and being used to create frameworks for investing and reporting. Although the abbreviation is new, the concepts of sustainable or responsible investing, are not new.
International and national ESG frameworks are complex and proliferating. Over the next five years, they are increasingly likely to affect financial institutions of all types in their fundraising, their required disclosures and their governance structures and practices.
ESG frameworks requires that investors and companies assess the wider societal and environmental risks and opportunities which affect their businesses. At the international level, there are increasing numbers and types of ESG frameworks and standards which address sustainability issues in general or in specialized part. Some of these are now becoming adopted in domestic regulatory requirements in emerging markets and developing economies.
Financial institutions based in the global south are generally less likely to be conversant and compliant with these frameworks because of less pressure so far. But as more investors adopt ESG frameworks and as more domestic sustainability regulations come into force, the ESG frameworks may themselves become a source of risk and opportunity for financial institutions based in the global south.
This webinar, David Porteous of Integral: Governance Solutions and Jesse Fripp of Shining Rock Ventures, highlight some of the recent developments in the ESG landscape and starts the discussion to assess the possible implications for financial institutions based in the global south.
Understanding the implications of ESG adoption requires attention and application now. David and Jesse are conducting a survey to understand the views of financial institutions in the global south and upon completion will send a briefing document with further information. Please do share your thoughts here.