The Quoted Companies Alliance (‘QCA’), in association with CMS, have recently published a research report that delves into the investor perspective, their predictions and expectations - and in particular how this relates to small and mid-sized quoted companies.
ESG (‘Environmental, Social, Governance’) was once a novel discussion in the boardroom, however it has catapulted to the forefront of everyone’s minds in recent years.
With the continued drive forward, the QCA stopped to ask what do investors really think of ESG?
Key findings of the research include:
- Compared to three years ago, nine in ten investors believe there has been an increase in ESG expectations for small and mid-caps whilst three-quarters anticipate that these expectations will continue to grow.
- Two in five investors believe that smaller companies are missing out on ESG-related investment.
- A third of investors say that the greater level of ESG-related reporting requirements means they are more likely to invest in Main Market companies over other small and mid-caps traded on AIM or AQSE.
- The biggest challenge for investors in assessing the ESG credentials of small and mid-caps is the inability to compare data between companies and incomplete data.
- Despite the above, there has been a corresponding perception that ESG disclosure among smaller companies has got better, with four-fifths observing an improvement, as well as some investors noting the positive impact on this area of the market.
To obtain a copy of the full report click on the link.