Last year, we estimate that there were 365 activist campaigns waged against U.S. Over time, we expect ESG reporting to become compulsory, as regulators adopt uniform standards for non-financial ESG metrics. In recent years, the focus on ESG metric standardization has made significant progress, as several well-established disclosure frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Disclosures (TCFD) have provided public companies guidance around materiality.
Looking ahead, we expect this trend to continue, particularly given the positive correlation between good corporate citizenship and long-term economic returns.įor companies seeking to screen positively into ESG-sensitive portfolios, the scope of public disclosure has grown to include a wide range of non-financial performance metrics that assess enterprise risk. During the past five years alone, it is estimated that global ESG-focused assets under management increased by nearly 35% to $30 trillion, representing a significant pool of potential fund flows for qualifying issuers. Environmental, Social & Governance (ESG) PracticeĪt Vallum, we believe that a robust ESG reporting function is an integral part of an effective investor relations program.