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Why responsible investments need common standards

The appeal of responsible investment funds underlines the need for the industry to agree common rules

Measure for measure: Investors need to be able to gauge the standards their money is being managed to
Measure for measure: Investors need to be able to gauge the standards their money is being managed to Photo: Getty Images

Investments with strong environmental, social and governance standards seem ever more popular, but there is still no common definition of what such standards mean. The investment industry is on the back foot here.

The appeal of responsible investment is unsurprising. Research pervades the media showing that organisations with better environmental, social and governance standards typically record stronger financial performance too.

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