ES&G In The Financial Sector

The growing acceptance of sustainability by the financial sector has become a major driver since 2002. Socially Responsible Investment (SRI) was a well-established but niche market in 2002. By the close of 2007, however, sustainability policies reached the Wall Street mainstream, with such a leading player as Goldman Sachs articulating sustainability-based, sector-specific methodologies to outperform the market. Many actors on Wall Street now recognize that opportunity always accompanies risk. Independent rating agencies … have developed risk profiles of multinational corporations based on the carbon content of their products (among other factors), causing a slow movement of public and private investments from bad to good environmental corporate actors…The financial sectors are already incorporating ESG factors into their methodologies, and these nonfinancial aspects will only become more intimately woven into the operations of the capital markets.

Ira Feldman in Business & Industry: Transitioning to Sustainability