We need to make ESG investments more comparable

Stuart Hutton

Stuart Hutton

It will also mean that any legislation is more aligned with the needs of the investor.

So how do governments manage this without being seen to be restricting the good outcomes that the sustainable investment market is aiming for?

The most obvious choice is to set standards on how the information needed is reported, providing clear transparent access to comparable information.

If this is dovetailed into the relevant financial and other non-financial information, not only will regulators be able to set parameters, but investors should gain greater understanding of what they are investing in.

With investors demanding more focus on how their savings impact the world around us, all businesses have a responsibility to offer the relevant information, and we as wealth managers have a responsibility to make sure that information is true and accurate.

From this a government can support the market with thoughtful regulation that encourages reporting and promotes sustainable and ethical investing.

Sustainable investing is all about long term objectives, allowing organisations to demonstrate the impact they are having and showing they understand the importance of governance.

It is about still being here in 10, 20 and 100 years’ time, and making sure the marketplace of planet Earth is here.

Stuart Hutton is branch principal at Raymond James, Cheltenham