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22 Mar 2019 • Capital Aberto Morrow Sodali's David Shammai on investors' priorities

It seems it´s no longer fitting in the 21st century reality the old principle that a company´s main mission under the capitalist system is to generate the profit return to its shareholders. This page is being turned by the force of a growing number of investors that are interested in returns that go beyond money – and without the need to change the system. They are reluctant to bet on companies that are covered in fraud and corruption, negligent to the impact of its activities in the environment and society, disrespectful to its employees and clients. According to a recent survey conducted by the consulting company Morrow Sodali, specialized in corporate governance, relevant institutional investors across the globe have been elevating to a priority the criteria related to ESG, English acronym for environment social and governance.

Referring to the socio-environmental, the change is intrinsically connected to consumers new habits, in a retroactive movement: consumers are increasingly demanding and concerned with the impact of the products and services they use, and companies are running to fulfill them, in a manner that is equally pleasing to investors. Shareholders have also realized the importance of themes such as diversity on the Board and executive remuneration for the sustainability of the companies.

Talking to Capital Aberto, David Shammai, one of the authors of Morrow Sodali´s study, says that the ESG tendency is here to stay. He is basing his analysis on the replies of 46 institutional investors heard – a group that manages a mountain of 33 trillion dollars. Evaluating, therefore, the sayings of those who actually have the power to decide.

Please note that the full article is only available to Capital Aberto subscribers: https://capitalaberto.com.br/secoes/relevo/david-shammai-da-morrow-sodali-elenca-prioridades-de-investidores/

22 Mar 2019 • Capital Aberto Morrow Sodali's David Shammai on investors' priorities

It seems it´s no longer fitting in the 21st century reality the old principle that a company´s main mission under the capitalist system is to generate the profit return to its shareholders. This page is being turned by the force of a growing number of investors that are interested in returns that go beyond money – and without the need to change the system. They are reluctant to bet on companies that are covered in fraud and corruption, negligent to the impact of its activities in the environment and society, disrespectful to its employees and clients. According to a recent survey conducted by the consulting company Morrow Sodali, specialized in corporate governance, relevant institutional investors across the globe have been elevating to a priority the criteria related to ESG, English acronym for environment social and governance.

Referring to the socio-environmental, the change is intrinsically connected to consumers new habits, in a retroactive movement: consumers are increasingly demanding and concerned with the impact of the products and services they use, and companies are running to fulfill them, in a manner that is equally pleasing to investors. Shareholders have also realized the importance of themes such as diversity on the Board and executive remuneration for the sustainability of the companies.

Talking to Capital Aberto, David Shammai, one of the authors of Morrow Sodali´s study, says that the ESG tendency is here to stay. He is basing his analysis on the replies of 46 institutional investors heard – a group that manages a mountain of 33 trillion dollars. Evaluating, therefore, the sayings of those who actually have the power to decide.

Please note that the full article is only available to Capital Aberto subscribers: https://capitalaberto.com.br/secoes/relevo/david-shammai-da-morrow-sodali-elenca-prioridades-de-investidores/