Do investors need more ESG experts?

23 March 2017

Editor

EU regulation

Yes, says UK-based environmental think tank, E3G, which also believes global investors to rapidly increase their environmental, social and governance (ESG) capacity and to train all staff to be aware of ESG issues. According to E3G's research, a third of the investor signatories to the Principles for Responsible for Investment (PRI) do not employ any ESG specialists and that a further 20% employ only one such expert.

This means, E3G said, that over 500 of these world leading investment companies, managing $6.9 trillion in assets, employ one or fewer experts in responsible investment.

E3G said that the globally agreed goal of keeping the increase in the global temperature to well below 2°C, was enshrined in the Paris Agreement on climate change, can only be met if investors fully appraise and respond to the risks and opportunities posed by climate change.

The report said that by "By failing to employ ESG, specialists these investors are not only putting their client’s assets at risk, they are putting global economic stability at risk by increasing the chances of an economic shock as dangerous levels of climate change unfold."

E3G believes that the globally-agreed goal of keeping the increase in the global temperature to well below 2°C, as enshrined in the Paris Agreement on climate change, can only be met if investors fully appraise and respond to the risks and opportunities posed by climate change.

"By failing to employ ESG specialists these investors are not only putting their client’s assets at risk, they are putting global economic stability at risk by increasing the chances of an economic shock as dangerous levels of climate change unfold." E3G said.

Ingrid Holmes, director of E3G said: “If these companies do not have the capacity to assess climate change risk they are not only putting their own companies at risk, they are locking in investment in a high carbon future that has the potential to cause a global economic crash.  These investors are at the heart of the solution to avoiding dangerous climate change. Climate change is a global emergency and the investment community must now act accordingly.”

Latest News

SHareholder meeting

The EU’s New Sustainability Regulations for Non-EU Companies Highlights a Growing Divide

SHareholder meeting

Investors Rights Group Urges SEC to Avoid Dismantling Rule 14a-8

SHareholder meeting

Texas Presses FTC, Attorney General on Anti-proxy Advisor Action

SHareholder meeting

Minerva Analytics Backs FRC Revisions to UK Audit and Assurance Standards

SHareholder meeting

Japan Targets Toughened Shareholder Proposal Threshold

SHareholder meeting

APAC Corporate Governance Reforms: Japan and Australia Shift Focus to Governance Effectiveness

Featured Briefings

Minerva Briefing

UK Proxy Season Review 2026

Minerva Briefing

Australia Proxy Season Review 2025

Minerva Briefing

2026 Proxy Season Preview

Related Stories

EU Sustainability regulations

The EU’s New Sustainability Regulations for Non-EU Companies Highlights a Growing Divide

July 29, 2026
Read More
Minerva Analytics UK Stewardship Code signatory status

Minerva Maintains UK Stewardship Code Signatory

July 16, 2026
Read More
 European Sustainability Reporting Standards (ESRS)

EU Finalises Revised ESRS: Less Data, Fewer Companies, Higher Judgement for Investors

July 8, 2026
Read More
Indiana and Proxy advisor restrictions

Indiana Injunction Marks Third Court Setback for Proxy Advisor Restrictions

July 1, 2026
Read More
Capitol Building

US Lawmakers Defend “Freedom to Invest” in Pushback Against Anti‑ESG Pressure

June 11, 2026
Read More

Texas Climate Investing Blacklist Stays on Ice

April 17, 2026
Read More