GLOBAL - The financial community needs to agree a common set of terms for the burgeoning environmental and responsible investment (RI) sector if it is to achieve its full potential, AXA Investment Managers (AXA IM) has warned.
Dr Raj Thamotheram, director of responsible investment at AXA IM, said while there was no lack of understanding about what ethical screening or clean tech investments meant, a lack of industry consensus made it more difficult to compare managers.
Thamotheram said: "Having found 16 different phrases to describe sustainability data, it's hardly surprising people are confused and that integration is not moving as quickly as it could.
"If we want mainstreaming to accelerate going forward, finding one or two consensus terms that embody what integration is about would be a very good move."
The survey also examined why investors were turning to ESG and sustainability themes. It found almost two thirds (64.2%) felt there were long term upside benefits and over a quarter (28%) felt ESG could help them avoid long term downside risks.
In terms of importance, those questioned thought ESG was graining traction due to increased investor interest, followed closely by changes in societies' thinking.
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.