UK Sustainable Investment Finance Association (UKSIF)
Climate Impact & Sustainability Data (2019)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Impact Investing
- Sustainability
- ESG
- Climate Change
- Social Equality
- Governance
Social Achievements
- B Corp certification is helping to attract young talent to the finance industry by offering mission-driven work and aligning with their values.
Governance Achievements
- B Corp certification encourages a shift towards a stakeholder-centric governance model, prioritizing the interests of all stakeholders rather than solely shareholders.
Climate Goals & Targets
Environmental Challenges
- Lack of standardized reporting measures for impact investing.
- Difficulty in distinguishing between outputs and impacts, particularly in supply chains.
- Passive funds and ETFs holding assets in companies with negative environmental and social impacts.
- Short-term focus driven by regulatory reporting requirements and client communication.
- Scaling due diligence processes for impact investing into the mainstream.
Mitigation Strategies
- Advocating for standardized impact measurement and clearer definitions of outputs and impacts.
- Encouraging active stewardship by passive fund managers.
- Shifting client communication to focus on long-term value creation.
- Promoting the B Corp certification as a mark of authenticity and commitment to stakeholder interests.
- Developing partnerships between financiers and sustainability experts to guide impact investing.