Published 08-20-08
Submitted by BSR
SAN FRANCISCO - August 20, 2008 - For more than 20 years, the use of environmental, social and governance criteria (ESG) has gained traction among socially responsible investors, but multiple hurdles have kept this movement from fully entering the mainstream.
Business for Social Responsibility (BSR) announces a new report, "Environmental, Social and Governance: Moving to Mainstream Investing?" which examines how mainstream financial institutions are currently incorporating ESG criteria, the barriers that are preventing its progress - and the potential solutions to overcoming these challenges.
"Although many studies, such as those by the United Nations Environment Programme Finance Initiative (UNEP FI), show a positive association between investors' use of ESG criteria and enhanced financial performance, the data is still inconclusive, and mainstream investors remain skeptical," said Laura Commike Gitman, BSR Director, Advisory Services. "This report looks beyond socially responsible investors and explores how mainstream financial institutions can advance the use of ESG criteria to maximize financial performance."
The report outlines the five main barriers to mainstream integration of ESG criteria - and offers advice for how financial institutions, global businesses and others can overcome them:
"Using the information in our report, mainstream investors and businesses will learn how to overcome common challenges and integrate ESG criteria into investment decisions," said Gitman. "Once this happens, more mainstream investors will begin to analyze ESG issues as part of their overall assessment of a company - positively impacting both financial results and sustainability."
For more information about BSR's financial services practice, please contact Laura Commike Gitman at lgitman@bsr.org.
About BSR
Since 1992, Business for Social Responsibility (BSR) has been providing socially responsible business solutions to many of the world's leading corporations. Headquartered in San Francisco and with offices in Beijing, Guangzhou, Hong Kong, New York and Paris, BSR is a nonprofit business association that serves its 250 member companies and other Global 1000 enterprises. Through advisory services, convenings and research, BSR works with corporations and concerned stakeholders of all types to create a more just and sustainable global economy. For more information, visit www.bsr.org.
Since 1992, Business for Social Responsibility (BSR) has been providing socially responsible business solutions to many of the world's leading corporations. Headquartered in San Francisco, with offices in Europe and China, BSR is a nonprofit business association that serves its 250 member companies and other Global 1000 enterprises. Through advisory services, convenings and research, BSR works with corporations and concerned stakeholders of all types to create a more just and sustainable global economy. For more information, visit www.bsr.org.
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