Asset managers are not providing all of the ESG information investors are looking for according to a report by Peregrine Communications.
The report says that there has been a 67% increase globally in ESG content from asset managers in the last 12 months but that they routinely provide generic, derivative content to their investors. Peregrine say their research shows that 34% of the 70 topics assessed in the report are significantly “over-indexed” by the market, with more content provided on these themes than there is demand. However, there is also unmet investor demand for information, “White Space”. These are issues where there is significantly more demand for content than there is supply and include measurement and materiality, supply chain transparency, active ownership and private equity.
The report also highlights that the average increase in brand interest for firms with significant ESG exposure is 80% over the last five years. This, say Peregrine, demonstrates a brand dividend for firms that communicate effectively around ESG.