ESG more relevant than ever in time of COVID-19

Since entering the new decade, there’s been a distinct shift in the role that purpose plays in the way we live and work. There’s no doubt that this has mounted over recent years due to rising concerns over social inequality and climate change. And, of course, in recent months with the COVID-19 outbreak. Consumers, organisations and governments are making more responsible choices guided by environmental, social and governance (ESG) principles.

ESG has been gaining traction across the financial services industry, UK investors have piled £3.9bn in to ESG funds since July 2017, a large increase from the £107m in the 33 months before that date, data from global funds network Calastone reveal.

As organisations are focusing more on ESG activities under increased regulatory scrutiny, it also makes commercial sense as Black Rock explored the performance differences between ESG indices and their core, non-ESG versions, with ESG outperforming non-ESG indices during the current COVID-19 downturn.

Grayce is supporting ESG programmes nationwide

At Grayce we have a strong track providing talented BA, PM and Data Analysis capability to leading financial services organisations. We’re currently supporting clients as they deliver against their ESG priorities. Client work varies across the piece, from sustainable finance programmes and sustainable investments to climate change. Our clients are reviewing all metrics for compliance, including board diversity, supply chain management, Taxonomy and Disclosure with demanding deadlines to deliver in the next couple of years.

‘As long-term investors, [my client] believes ESG factors should be considered in addition to and alongside more financial metrics, therefore integrating ESG principles and philosophy is imperative. They are identifying ESG risk factors and incorporating them into [their] general risk management process and aspire to be a thought leader and innovate thinking on key ESG themes.’ Harina Gill, Grayce Analyst

As consumer demand increases and regulatory scrutiny continues it will only see a continued focus on ESG in financial services. This in turn will also support a more inclusive and diverse talent strategy, helping the industry attract and retain talent. Why? People want to work for organisations with purpose and a clear ethical and sustainability mandate. None more so than the emerging workforce.

The emerging workforce are looking for employers to operate with a sense of purpose in mind. They want to know that their career has a positive impact on social and environmental issues. Grayce Analysts are the next generation of leaders that are on client sites across the country, developing and delivering the ESG-led future of financial services.

Talk to us today to see how we’re helping clients deliver against their ESG programmes.

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