ESG Exerts Growing Influence on Investment,Corporate Strategy

摘要

Less than two months after Royal Dutch Shell bowed to pressure from institutional investors and pledged to set short-term carbon emissions goals,European rival BP has made a similar concession,agreeing to support a shareholder resolution that calls for the company to publish information showing that its strategy is consistent with the Paris Agreement's goals.Both companies have also agreed to link executive compensation to reductions in emissions(EIF Dec.5'18).These are clear signs that environmental,social and governance(ESG)factors are gaining traction among mainstream investors.ESG is also making "major inroads" in the fixed-income investment market,S&P Global Ratings wrote in a recent report.The credit ratings agency plans to include ESG sections in its reports going forward,starting with the oil and gas and utilities sectors,which it says have "greater exposure to ESG risks and opportunities." S&P says it will incorporate an ESG section in some 2,000 corporate credit reports through this year,or almost half of its corporate universe.