WWF and Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, released a global survey on the collecting, reporting, and application of environmental, social, and governance (ESG) data in infrastructure projects: Testing Industry Attitudes Toward a Common Reporting Approach for ESG Data Use in Infrastructure Investment. The report was conducted by KPMG Advisory N.V. and Mott MacDonald and uniquely surveys both ESG data users and data preparers to explore whether an industrywide standard approach to measuring ESG in infrastructure investment is desired and how this might be achieved.
The survey results demonstrate that both data users and data preparers are looking for well-defined and consistent metrics, standards, and reporting frameworks for ESG. The output suggests that the market sees value in convergence on an industry-tailored set of metrics for ESG data, but with almost 40 different frameworks currently in use by respondents, there is significant divergence in current ESG standards.
According to the survey results, both data users and data providers believe that, apart from standardization and simplification, there are two mechanisms that may improve measurable integration of ESG into infrastructure investment: government regulation regarding ESG disclosures and pressure from investors and lenders.
In a joint letter accompanying the report, Scott Minerd, chairman of Guggenheim Investments and Guggenheim Partners global chief investment officer, and Carter Roberts, president & CEO of WWF, wrote:
“We agree with the authors of this report, who conclude that ‘the time for action is now.’ Trends in climate change and the COVID-19 crisis have led to an awakening in the finance sector of its roles and responsibilities in securing a healthy and stable planet and global economy.”
