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Getting tough on the investment industry’s ESG fakes

The UNPRI should crack down on superficial commitment if the sector is to become more than just a box-ticking exercise

In the last few years, ESG principles — the idea that environmental, social and governance factors will affect the financial performance of a portfolio — have becoming increasingly prevalent throughout the financial sector.

The rise of ESG investing has been fuelled by client demands and a greater dedication to corporate responsibility. In 2018, the number of members of the UN Principles of Responsible Investment (UNPRI) had reached 1,600, with more than $70tn assets under management, demonstrating its global reach and value.

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