Ban urges for better management of ESG issues in business practice

United Nations Secretary-General Ban Ki-moon has urged leaders of stock exchanges and financial institutions to better manage and integrate environmental, social and governance(ESG) issues into their business practices.

In a video message to a gathering of more than 60 top global executives at the UN headquarters in New York yesterday, the UN Secretary General said these so-called ESG issues are critical in creating a world economy that is more stable, inclusive and sustainable.

''Stock exchanges and other financial bodies and institutions have a key role to play,'' he told the group, which had met to explore ways in which stock exchanges can promote sustainable business practices and long-term approaches to investment.

He welcomed the steps already undertaken by participants to incorporate ESG considerations into new stock indexes, listing rules and regulatory frameworks, and said he hoped the meeting will inspire even further efforts.

The Secretary-General also highlighted the ''unprecedented'' partnerships forged between the UN and the business and financial communities in recent years.

Among them is the UN Global Compact, worlds largest corporate sustainability and responsibility initiative, which currently involves over 5,000 companies across 130 countries.

Another is the UN-backed Principles for Responsible Investment, a set of voluntary actions for incorporating ESG issues into mainstream investment decision-making and ownership practices that today includes more than 600 institutional investors with assets of over 18 trillion dollars.

A report released in July by the UN Environment Programme and a powerful group of asset managers controlling some two trillion dollars in assets argued that if investment consultants and others do not incorporate ESG considerations into their services, they face a very real risk that they will be sued for negligence.

It also stressed the central role that the worlds largest institutional investors, including pensions funds, insurance companies, sovereign wealth funds and mutual funds, have in easing the transition to a low-carbon and resource-efficient green economy.

Yesterdays meeting was co-hosted by the Global Compact, the UN Conference on Trade and Development and the UN-backed Principles for Responsible Investment.

-- (UNI) -- 03DF1.xml

Viewer's Comment

Comments Not Available

More Stories