ESG & Sustainable Finance

Environmental, social and governance (ESG) considerations have come to prominence recently, and there has been a strong movement towards increasing and standardising ESG disclosures by companies. A number of key factors have driven the rise in the importance of ESG, both from a financial services perspective and across the wider economy. First, public concern for the environment and social equity has grown. Second, financial institutions have come to better understand the risks to investments associated with ESG issues. 

Despite a strong focus on the social and governance aspects of ESG in recent years, most of the current policy momentum relates to the “E” in ESG, with many jurisdictions starting to mandate climate-related disclosures in line with the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations.