ESG has swiftly become a high priority for a large number of major investors and corporations both for practical reasons and for the good PR a solid ESG strategy brings.
London appears to be the place where adoption of ambitious ESG strategies is rapidly taking off, bringing with it a high level of interest from investors.
FTI Consulting, on behalf of the City of London Corporation, recently carried out a poll of institutional investors where 66% of those investors put London forward as 'world-leading’ or 'one of the best’ cities in the world in tackling sustainability, social and governance issues. This impressive vote of confidence is even stronger among global institutional investors based in the United States with 71% ranking London in the same way. With COP 26 just around the corner in November 2021 this is a strong endorsement of the progress London has made in the ESG sphere so far and what it will have to offer to investors in the future.
What’s more, following the impact COVID 19 has had on London and the world, governing bodies also think prioritising ESG is a key way in which London can bounce back and continue to attract investment, as Policy chair of the City Corporation, Catherine McGuinness, said: “London must build back better from the pandemic and taking a leadership role in ESG is vital in order to address the challenges that we face across the globe.” The City Corporation has ambitious sustainability goals of its own - it aims to achieve net zero carbon emissions from its own operations by 2027 and its investments and supply chain by 2040, and supports net zero in the Square Mile by 2040.