Informed investors can be empowered investors. With the backdrop of marked advances in technology, investors now have access to a massive amount of information that is easily available at their fingertips. Coupled with the growth of social media and the democratisation of news sharing, investors are able to get instant updates on their investment portfolios.
The Environmental, Social and Governance approach offers a framework to analyse an investment opportunity from a forward-facing perspective.
In some cases, access to real-time, consistent and detailed company information has spurred investors to express their disagreement with corporate behaviours of their investee companies. And what is prompting this type of shareholder activism? A recent study by Ernst & Young suggests that individual investors, particularly the millennial generation, increasingly want their portfolios to reflect their personal values and beliefs. Similarly, asset owners are influencing behaviours that don’t align with their vision for the future.
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Source: The Business Times, 2 August 2017