While investors are increasingly clamoring for more ESG information as they pour money into ESG investments, there remains no one standard for defining just what ESG is. Blackrock, with $7.8 trillion in assets, is seeking to address this by getting the market to move to just one standard, one which would be recognized around the world. Landing on a single approach would go a long way to minimizing risks for reporting meaningful, accurate and consistent information; hopefully this would reduce the burden, too. Until then, there remains concern and a high level of risk about matching what is said about investment approaches to what is actually being implemented.
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Coming up with just one ESG standard?
“We see the approach proposed by the IFRS Foundation as the most practicable and likely to succeed,” BlackRock said. “We believe a combination of the best ideas would minimise the reporting burden on companies and achieve the optimal results for users of company reporting on sustainability.”

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