Editor’s introduction

Stephen Butler, Director of Stakeholder Engagement, Luminous

Our current operating model for big business is unsustainable. It simply has to change, and the time is now. There is a sustainability revolution taking place and it’s the largest investment movement we’ve ever seen.

A global shift is already transforming our economies and the companies that drive them. And it is changing how markets are behaving. Our current economic, social and governance models have to evolve and we must fundamentally rethink established norms. No country, sector, company or asset class will go untouched. 

In this edition of Reporting Matters, we focus on some of the key developments on the ESG landscape.

The current turmoil we are all living through has shown us how interconnected the world is and how deeply we rely on those connections for our very survival. Globally, at least $3 trillion of institutional assets already track ESG scores and the percentage of assets under management. And according to Morningstar, in a time of plunging stock markets ESG investments have fared better than the overall market. In fact, during March, 62% of ESG-focused large-cap equity funds outperformed that index. 

This is no surprise to those investors who already integrate ESG into decision making, and over the next months and indeed years all investors will be asking questions of corporates that only ESG can answer. 

My advice to corporates? Don’t waste this crisis – start to address long-term sustainability trends; embrace the business case for ESG and use it to differentiate your business as the right investment opportunity.

I would like to thank all those who have contributed to this special edition of Reporting Matters; they, like me, passionately believe that a focus on ESG is fundamental to creating better, stronger companies and more stable capital markets. 

If you would like to discuss how Luminous can help your company respond to the ESG agenda, then please do get in touch. stephen.butler@luminous.co.uk