This is a very thoughtful piece by Keith Ambachtsheer that suggests a way to test whether the news about ESG integration is real or hype:
I am proposing a simple test to answer this important question: carefully study how asset owners tell their value-creating stories to their stakeholders. Unless these stories are clearly credible, the ‘shift to ESG investing’ is just another case of investment-industry hype triumphing over reality.
Why focus on the behaviour of asset owners? Because regardless of whether they are pension, endowment, or sovereign wealth funds, asset owners have a fiduciary duty to create value for their stakeholders. Collectively, they sit on top of the financial food chain and where they go, others follow.
He cites the IIRC Framework as an important tool in telling this story.
Read the full article