Net-zero hour for ESG investing
Corporate disclosures must be relevant, reliable, comparable, timely, and decision-useful to investors
AS THE global association of investment professionals, CFA Institute monitors key debates and evolving developments across the investment industry. In recent years, one significant topic of discussion has been the role and application of environmental, social, and governance (ESG) information in the investment management process.
Today, I am writing about one particular focus area within ESG investing: how net-zero considerations can be incorporated into investment decision-making in a manner consistent with fiduciary duty and clients’ directions. CFA Institute recently published its views on net zero, which aim to inform and shape this discussion. Here, I explain the context for our views.
The conversation around net zero is broad. It involves scientists, economists, engineers, and others from a multitude of disciplines who bring unique expertise to bear on this topic. Each group brings a valuable perspective, and CFA Institute is contributing to the net-zero discussion from an investment industry perspective with the aim of bringing clarity around certain issues impacting investors.
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