“Datamaran is… probably the most efficient tool to achieve an in-depth understanding of corporate reporting ever built. The regulatory radar in particular has the potential to disrupt classical financial analysis across many sectors and asset classes. I strongly expect its information to prove financially material for corporates, advisors, and investors alike.”
Dr. Andreas Hoepner, new member of eRevalue’s Advisory Board and Chair of Technical Committee
Incorporating ESG issues into investment analysis and decision-making processes is becoming mainstream. More than a moral obligation, companies worldwide are increasingly seeking for opportunities that combine environmental and social benefits to solid returns.
This rising trend is a key incentive for corporations, who now see ESG strategy as an opportunity to attract long-term investors, promote new products and access capital. But increasing regulatory requirements are also forcing companies to anticipate emerging ESG risks, particularly for those vulnerable to breach major international norms when entering new markets.
Just as important as keeping an eye on regulatory developments, it is essential to keep track of reputational performance; while issues like corruption and bribery are hard to quantify, it is possible to measure the negative impact that such risks could have on companies and stakeholders- the FIFA case being a prime example.
Driven by rising demand and deeper engagement from Millennial and female investors, ESG related investment is now a profitable trend, with one out of every six dollars of assets under professional management in the US – a total of US $6.6trn –allocated on responsible investment in 2014. It is estimated that 70 percent of individual investors are now interested in ESG related investments.
eRevalue interviewed Dr. Andreas Hoepner, fellow at the UNPRI and Associate Professor of Finance at the ICMA Centre of Henley Business School, to discuss emerging trends in responsible investing, the role of technology in adding value to the investment process, and how long-term investors are becoming more effective providers of capital.
Joining Dr. Hoepner on eRevalue’s Technical Committee are Dr. Damian Borth, Ian van der Vlugt, Andy Moniz and Sean Gilbert.