Resumen de Responsible investors: Who they are, what they want.
This article by a long-time partner in Domini Social Investments, a well-known socially responsible investment firm, begins by describing four different approaches that institutional investors have currently adopted as they account for environmental, social, and governance (ESG) considerations in their investment decisions: (1) the incorporation of internationally accepted ESG norms and standards (as set forth in, for example, the FTSE4Good Indexes); (2) the use of industry-specific ESG ratings and rankings (such as those used for the Dow Jones Sustainability Indexes); (3) the integration of ESG considerations into stock valuation (as advocated, for example, in the Principles of Responsible Investment); and (4) the identification of companies whose business models successfully address the most pressing societal needs (often referred to as 'impact investing'). The article then seeks to answer the question: what corporate ESG programs and policies can be most effectively used by managers seeking to attract institutional investors using these different approaches? The author describes three kinds of corporate ESG programs. In one approach, corporate managers focus on strengthening relations with non-investor stakeholders, including employees, the environment, and local communities. In the second approach, corporations seek to create 'shared value' by emphasizing products and services that help address society's most pressing needs. The third approach focuses on identifying and addressing the firm's industry-specific ESG performance indicators (KPIs) that are most material to stockholders and other stakeholders. Given institutional investors' growing commitment to the incorporation of ESG concerns, corporate managers should understand the range of investors' approaches to ESG and how to account for them in their strategic planning. At the same time, they are encouraged to develop comprehensive ESG policies and goals, devote adequate resources to their implementation, and communicate efforts effectively to these investors and to the public. [ABSTRACT FROM AUTHOR]
