But shareholder revolts are more likely when both ISS and Glass Lewis make the same voting recommendation, finds FRC research.
Many scandal-hit companies were found to have previously presented high ‘social’ performance measures, study shows.
The FRC has commissioned a review to investigate how ESG ratings agencies and proxy advisers affect investment decisions.
Researchers say firms may exaggerate their ESG performance over fears that investors will divest from their stock.
Experts warn ESG risks “mission drift” amid geopolitical and economic challenges, such as the war in Ukraine and energy prices.
To make ESG activities meaningful, IFRS and GAAP should feature data that is relevant to long-term corporate and societal value creation.
Study shows that companies with verified ESG ratings attract “financially sophisticated” investors with “long-term orientation”.
Study finds poor ESG practices negatively impact long-term value, but that this is not reflected in short-term stock prices.
Is the shift to stakeholder primacy real—or a PR exercise? Plus change at the top for the Institute of Directors; confirmation of the Biden–Harris ticket; and bad news for ESG.
Researchers found that firms’ ESG ratings were also “significantly negatively associated with returns” in the Q2 recovery period.