Asset management has been transformed by many things, including the cultural changes that followed the financial crisis, the rise of technology, the growth in regulation, and the expansion of emerging markets. The most profound however, and the most exciting one could say, is the debate about purpose.
Across the financial sector, there is growing recognition that whilst of course delivering financial returns is our objective, we also need to analyse how our actions – or inactions – have an impact on meeting the world’s needs.
In it’s Responsible Investment Annual Review, BMO Global Asset Management engaged with 665 companies in 46 countries throughout 2018. The report also recorded 237 instances of change, or ‘milestones’, where companies improved ESG policies and practices following engagement throughout the year.
Over half (54%) of the milestones were linked to the Sustainable Development Goals (SDGs) and 46% of the milestones were on corporate governance themes. 14% of milestones linked to SDG 12, which is focused on climate-related issues of environmental supply chain management, improving ESG disclosure and the management of pollution impacts. 13% of milestones linked to SDG 3, which includes encouraging enhanced access to medicines and responsible drug pricing.
Check out the entire report here.
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