January 22, 2022

CFA Institute Survey on ESG Matters in November 2021

CFA Institute Survey on ESG Matters in November 2021

The CFA Institute, a global professional organization focused on investing, has released the results of a survey conducted among its members on various ESG issues. The survey results indicate that many members of the CFA Institute support the establishment of standards for ESG disclosure and the reporting of sustainability issues by companies.

One of the survey’s objectives was to find out how members of the investment industry feel about the responsibilities of their firms when it comes to incorporating ESG factors into the investment decision process. Only 18 percent of the respondents believe that ESG integration is necessary. Most of them also said that it should be decided by the client and not by regulators.

The significance of ESG issues in the investment process is also in the spotlight due to the increasing number of regulations aimed at regulating these factors. Members of the institute also believe that these issues should be handled by the client and the investment managers.

A global disclosure standard would help investors understand how ESG factors are integrated into the decision-making process of mutual funds. Most of the respondents believe that reporting of ESG issues should be made mandatory. They also support the inclusion of information on a company's social and environmental impact in the disclosure process.

They also support the development of a uniform and consistent global framework for ESG disclosure. A majority of the respondents also believe that a third-party assurance system should be required for the reporting of ESG data.

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