Views of investors/members regarding corporate sustainability reporting including whether regulators should require ESG matters be incorporated into investment analysis and whether public companies must disclose sustainability data in annual reports.
CFA Institute fielded a range of questions to better understand investor/member views regarding key points in the on-going global debate around whether and how corporate reporting should include information related to sustainability (so called Environmental, Societal, and Governance matters (ESG)). Key questions remain unresolved, including who should set standards, what they should include, and whether they should be mandatory or voluntary.
Methodology
Our survey, which was fielded during the last two weeks of September 2021, was sent to 30,000 CFA Institute members and CFA® charterholders. The survey received a total of 710 responses, which is a response rate of 2.4% and a margin of error of ±3.6%. The survey had a very high completion rate (meaning those who clicked the survey link completed it) of 93%. In terms of regional responses, 61% of the responses came from the Americas, 26% came from Europe/Middle East (EMEA), and 14% came from Asia Pacific.
Summary of findings
Integration of ESG by Investment Managers Should Not Be Government Mandated. Of particular interest to professional investment managers is whether government regulators should mandate that such managers integrate ESG factors into their investment analysis. Collectively, nearly 80% of the respondents were opposed to a government mandate or felt that the decision on ESG integration should be up to the client in consultation with the manager. Comments in the survey indicated that this is a matter of the free-market process, independent professional judgment, and primacy of client preferences in such matters. Less than 20% of the respondents felt that a government directive should be made in this regard. judgment, and primacy of client preferences in such matters. Less than 20% of the respondents felt that a government directive should be made in this regard.