Sustainability data must avoid becoming a “tick the box exercise”, says Schroders
Asset manager Schroders has warned against adopting an “overly granular approach” to non-financial data, as it joins a group of stakeholders pushing for better reporting by businesses of environmental, social and governance (ESG) information.
In June, the firm joined nine other stakeholders in urging the European Commission to require more companies to disclose data and implement minimum mandatory requirements that are comparable with global standards of reporting, when it makes an upcoming revision to the Non-Financial Reporting Directive (NFRD).
The NFRD currently requires large institutions such as banks and insurance firms, as well as large publicly-listed companies, to report a range of data that could impact their sustainability over time.
Schroders, which manages USD662.6 billion of assets on behalf of institutional and retail investors, affirms that “transparency by all, whether financial services providers, or the companies in which we invest, is key”.
Elisabeth Ottawa, deputy head of Public Policy for Schroders, says that having more data will allow asset managers to stand by sustainable companies in the bid to ‘build back better’ after the coronavirus pandemic.