Investors & ESG - What Boards Need To Know

ESG – A CHANGING INVESTOR LANDSCAPE 

Board Implications

ESG, once clearly in vogue, has become a more polarising and controversial term. There has been a shift in political and public opinion, as well as in the investor landscape. Many companies have moved away from the term ESG. 

As Fidelio supports Boards to oversee long-term and sustainable value growth, it is clear that many Boards are struggling with “ESG”, some finding it problematic. Designed as an investment approach, ESG may now feel less relevant to the Boardroom. We would argue that Boards need to be alert to changing investor sentiment. The shift in thinking on ESG may be more relevant and value-focused than those in the Boardroom fully recognise. 

Fidelio’s Hans-Christoph Hirt recently joined an investor panel at a leading London business school exploring how major pension and investment funds are engaging on sustainability and ESG issues. Following the panel, in this Overture Hans shares his thinking on the implications for the Board with three key themes emerging.  To read Fidelio's full Overture, please click here.