Sustainable investing may be gratifying for wealthy individuals and families, but it is far from simple. A lack of standards in the measurement and reporting of ESG (environmental, social and governance) products and funds can leave investors confused. And when it comes to impact investments, capturing the right data takes time, effort and, often, a hands-on approach.
The problem for ESG investors is not a lack of data but an oversupply of tools and frameworks. “There is a plethora of standards and different levels of disclosure in the market,” says Amy Clarke, chief impact officer at London-based Tribe Impact Capital, a wealth manager. “It can be really challenging to understand what measures are meaningful.”