What is ESG?
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Environmental, social and governance (ESG) issues are typically non-financial risks and opportunities that can affect the performance of investments. There are no universally accepted definitions of ESG and the term is interpreted broadly, often with ethical overtones. IFM approaches ESG issues in terms of relevance and materiality. Consideration of these issues is used as a framework to avoid risk, including reputational risk, and to identify opportunities. IFM's ESG due diligence requires that investments should not cause environmental damage, breach human rights, be liable of gross corruption or be culpable of other violations of fundamental ethical norms. Governance risks are considered in terms of shareholder rights, board composition, director skills and alignment of performance with remuneration.
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