The role of investors in ESG-disclosures

UDC 336.767.017.2

Authors

A. V. BUNIAKOVA,
Lecturer, Faculty of International Economic Relations Moscow State Institute of International Relations (MGIMO), Moscow, Russia

Abstract

Relevance. With the development of the concept of responsible investing (ESG investing) and the spread of sustainability principles to the financial sector, non-financial disclosures are of particular importance to investors.
The purpose of the study. The author investigates the role of rating-based investors’ decisions in promoting the concept of ESG disclosures. For this purpose, the article provides statistical data on the number of signatories to the UN Principles for Responsible Investment (UN PRI), their structure and the volume of assets under management (AUM), since the Principles for Responsible Investment is the leading organization in this area, and participation in it implies concrete steps to encourage the corporate sector to disclose non-financial information. The article also discusses the methodology of the rating agency S&P Global, which is often used by investors when making investment decisions.
Results. The author concludes that institutional investors’ interest in non-financial data disclosure is growing, and their ESG policies may have significant potential to influence companies’ non-financial disclosure activities.

Keywords

responsible investing, sustainable investing, Principles for Responsible Investing, ESG investing, ESG factors, ESG rating agencies, S&P Global.