UN PRI Signatories' Ethics: Walk the Talk or Talk the Talk? Serious Ethical First Movers vs. Late Free Riders

Bauckloh, Tobias; Utz, Sebastian; Zeile, Sebastian; Zwergel, Bernhard

doi:10.2139/ssrn.3386095

Cited by 4 publications

(1 citation statement)

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“…As at February 2020, over 2,250 asset owners, managers and service providers have signed on to the six principles which guide PRI membership. However, free-riding and greenwashing effects for less committed firms are problematic (Gray 2009;Bauckloh et al 2019) and in 2018 the PRI established a 'Serious Violations' policy to protect against outliers. In February 2020 it announced a 'mandatory to report but voluntary disclosure' requirement for certain climate-related risk indicators (PRI 2019).…”

Section: A Structural Paradox At This Stage Of Developmentmentioning

confidence: 99%

Applying ‘Deep ESG’ to Asian private equity

Long¹,

Johnstone

2021

Journal of Sustainable Finance & Investment

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At this stage of Asia's development there is a need, and an opportunity, to establish a validation methodology that better gauges ESG implementation and sustainability aspirations in Asian private equity. Private equity, like major public market and debt investors such as Blackrock, has adopted language that suggests a proactive approach to ESG management. However, processoriented ESG compliance presently far outstrips evidence of tangible contributions to ESG objectives and outcomes. This article describes a taxonomy of common approaches to ESG investment practices in Asian private equity and discusses their shortcomings. It then presents 'Deep ESG' as an alternative approach that operationalizes ESG and sustainability metrics more holistically than existing frameworks. The Deep ESG framework enables a higher level of market-led intentionality that better informs institutional investors, regulators, communities, and employees as they evaluate private equity's 'balance sheet' of ESG outcomes. By investing in tools for goal setting, measurement and evaluation and applying them consistently across all target and portfolio companies, private equity managers can pivot away from a defensive approach by working with stakeholders to shape constructive solutions to urgent sustainability goals.

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Section: A Structural Paradox At This Stage Of Developmentmentioning

confidence: 99%