A time for introspection – considering the impact of your own business
The Institutional Asset Manager article, "A time for introspection – considering the impact of your own business," quoted Russell Reynolds Associates Consultant Kurt Harrison on the impact leaders can expect ESG to have on the financial services industry. The article is excerpted below.
Institutional asset managers are on a journey to improve the impact their own business has on the world. As investor demands related to the impact of their investments increases, managers focused on providing robust impact information to clients are themselves becoming more introspective and making efforts to strengthen their own operations in terms of these factors as well.
In a world where seven out of ten institutional investors would refuse a private equity or co-investment opportunity on ESG grounds, according to a report by PwC, asset managers are increasingly under scrutiny.
Kurt B. Harrison, Co-head of the Sustainability Practice at Russell Reynolds Associates outlines: “ESG is forcing a fundamental rethink in corporate strategy. ESG will eventually have the same effect as prior ‘transformations’ which resulted in financial services firms reinventing themselves as ‘tech companies’ and later measuring and reporting how diverse and inclusive their work environments had become.”
Asset managers are responding to this not only by building parameters and frameworks for the way they invest, but also making changes to the way their business operates on a more macro level.
To read the full article, click here.