ESG is having a fast-growing impact on the investment funds sector on a worldwide basis and COVID-19 has accelerated the change. Moreover, regulatory activity of a more stringent nature, carbon net-zero emissions pledges and renewables outperforming fossil fuels in terms of yields have been the main market drivers for the ESG evolution.
As distinguished by the Environment Analyst’s Global Business Summit 2021, other important drivers are:
- The new SEC reporting framework for US companies
- Biden’s $2.2tn infrastructure proposal
- EU Action Plan on Financing Sustainable Growth
- EU Taxonomy Regulation
- The development of sustainability-linked loan and bond principles.
More and more institutional and retail investors include ESG considerations as part of their comprehensive investment strategies. In addition, investors looking to align their values with where they’re putting their money have fueled a significant rise in impact investing. This means that their investments need to have a positive environmental or social impact.
All this growing demand is not easy to handle. Companies need the expertise of consultants to help them integrate the new frameworks and procedures.
But, what is the main role of an environmental consultant? Of course, maximize the company’s performance and protect ESG from losing credibility. Companies have the tendency to greenwash their projects and businesses. To avoid greenwashing, they need encouragement to adopt meaningful ESG policies, which target impactful outcomes. Don’t forget that these outcomes should be demonstrated to stakeholders.
Is it possible for an environmental consultant to be an educator? The answer is yes. Regulations are changing rapidly and not all companies have the flexibility to add new board members. Environmental consultants could help them educate their current board.
As CSE continues to provide valuable insights into various aspects of sustainability and ESG performance, it furthers its commitment to high caliber training in sustainability for C-Suite executives & Sustainability Managers worldwide.
If you want to get certified, check out CSE’s Certified Sustainability (ESG) Practitioner Programs worldwide. Upcoming digital trainings include: Seattle, Sept. 9-10 &13 (Advanced Edition) , Asia- Pacific, Sept. 23-24 & 27 (Advanced Edition) and Canada, Oct. 21-22 & 25 (Leadership Edition)