Global investors 'taking ESG issues into account'

Corporate experts believe environmental, social and governance (ESG) issues are exerting a growing influence on global investors.

Although several large companies lamented the fact that shareholders seem interested in little other than short-term performance in recent months, there is evidence to suggest an increased appreciation of ESG, the Financial Times reports.

Bozena Jankowska, head of sustainability at investment manager RCM, believes "the penny is starting to drop" among mainstream investors regarding this issue.

He told the newspaper: "There is a growing school of thought that if you take into account ESG factors, you will have a better understanding of how the company is run."

This view is shared by John Wilcox, chairman of corporate governance consultancy Sodali.

However, he noted that ESG remains "very politicised" in the US and Wall Street firms are still more comfortable when focusing on financial results, which can "reinforce short-termism".

Nasdaq recently announced plans to launch a new sustainability index for companies in Finland that will rank them according to corporate, social and environmental responsibility.