The push from investors to increase insight into climate risks continues. In the Financial Times Mercy Investment Services (the investment services arm of the Sisters of Mercy in North America) were reportedfiling a motion with Black Rock noting among other issues that “(p)roxy voting practices that ignore climate change seem to ignore significant company-specific and economy-wide risks associated with negative impacts of climate change.” In the same issue of the FT a recent study by Bank of America was cited noting that “(q)uarrels involving environmental, social and governance issues have wiped more than $500bn off the value of large US companies over the past five year.” Further support for including ESG issues comes from the recent study from the GABV cited in my featured article. For bank lenders these issues are also relevant as they should be part of the risk assessment process. But how many banks are actually assessing the risk of ESG issues when the make underwriting decisions?
