Two decades of ESG - EDITORIAL - Magazine | Asia Asset Management

ESG or environmental, social and governance is a term coined 20 years ago by Kofi Annan, former secretary general of the United Nations. But it only g...

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Kofi Annan ,United Nations ,Southeast Asia ,Esg Or Environmental ,Ocial And Governance Isa Term Coined 20 Years Ago By Kofi Annan ,Ormer Secretary General Of The United Nations But It Only Gained Traction Abouta Decade Ago ,Argely Spearheaded By Developed Countries In The West Southeast Asia ,Doption Of Esg Has Remained Relatively Low ,Hough The Last Couple Of Years Has Seen Stronger Appetite Among Pension Funds And Sovereign Wealth Question Is Whether This Enough To Hit Critical Mass Most Common Reasons Hindering Esg Adoption Often Lack Investor Awareness Education That Amp Rsquos Even Before Taking Into Account Pushback Intense Political Lobbying By Companies In Oil Gas Sector Their Ilk More Importantly Perhaps ,Here Seems To Be Little Interest Learn Pension Funds Can Publisha Million Reports On Why They Want Integrate Esg ,R Why They Use Certain Asset Valuation Methodologies ,R Why They Adopta Specific Framework But If These Painstakingly Compiled Reports Are Read By Onlya Handful Of People ,T Defeats The Purpose And Asset Owners Too Have To Bear In Mind That Overly Technical Reports May Turn Off Investors Be Sure ,Sg Is Not An Easy Subject To Geta Handle On It May Be Acronym With Only Three Letters ,Ut Each One Makes Fora Deep Subject Let Amp Rsquos Take The Ldquoe Rdquo It Requires Understanding An Asset Environmental Impact ,Uch As Carbon Emissions ,Waste Management ,Reforestation Practices ,Biodiversity ,Limate Change Mitigation And Adaptation Strategy ,Roduct Sustainability And Sustainable Sourcing Of Raw Materials ,O Namea Few The Amp Ldquos Rdquo And Ldquog Are Just As Weighty ,Overing Areas Like Employee Diversity ,Human Rights Policies ,Labour Standards ,Hareholder Rights And Engagement ,Anagement Transparency And Data Privacy Complexity Isn Amp Rsquot Necessarilya Bad Thing In Fact ,Versimplifying Esg May Lead To Stakeholders Not Havinga True Understanding Of The Subject It Is Alsoa Disservice Many Companies ,Nvestors And Stakeholders Who Have Been Doing The Hard Work Of Implementing Strategies That Conform To Requirements It Amp Rsquos Good All Information On Esg Onus Is Not Just Companies Ensure Presented Ina Readable Manner ,Ut Also On Investors Who Do Actually Need To Read That Information And Understand The Subject So They Can Make Proper Investment Decisions ,