London Stock Exchange Group’s Global Sustainable Investment Centre has set out recommendations for good practice in environmental, social and governance reporting in a global guide, responding to investor demand for a more consistent approach.
The online guide, for issuers and investors, has also been sent to more than 2,700 companies that list securities on the LSEG’s U.K. and Italian markets. These companies represent a total market capitalization of more than £5 trillion ($6.2 trillion).
The aim is to help companies gain a clear understanding of the ESG information investors want to see, and the guide builds on market standards including the Financial Stability Board’s task force on climate-related financial disclosures report, and the United Nations’ sustainable development goals.
“We have a critical role to play, and this new ESG guide is an important tool to encourage and assist issuers of all sizes to integrate ESG factors into their investor reporting and communication,” said Nikhil Rathi, director of international development at LSEG and CEO of subsidiary London Stock Exchange PLC and, in a news release.
Martin Skancke, board chairman of the U.N.’s Principles for Responsible Investment, added that institutional investors need investment-grade ESG data to help inform their decision-making and asset allocation. “Exchange operators have a major role to play in supporting enhanced data disclosure so we commend the London Stock Exchange Group for their leadership towards improving dialogue and ESG data flows across the investment chain and call on other exchange groups to follow suit.”
Further information and the guide are available on LSEG’s website.