By: Financial Times
May 27, 2020
Nine out of 10 investors would prioritise a company’s economic recovery over its ethical principles, in a sign that investor commitment to more responsible forms of investing is faltering in the market downturn.
A new survey by Boston Consulting Group, the management consultants, found that 92 per cent of professional investors would prioritise key business capabilities over its commitment to environmental, social and governance objectives (ESG).
“One way to look at that is half of investors give companies a green light, or a lot of leeway, in terms of not following through on the ESG commitments that they laid out,” said Hady Farag, partner and associate director at BCG. “You first have to ensure your survival and long-term competitiveness.”