It is Not Easier for Green Firms to Raise Capital

Despite the growing popularity of environmental, social and governance- (ESG-) based investing, new research shows that it has not been any easier for “green” firms to raise equity or debt capital when compared to “brown” firms.

As evidence of the increased interest in sustainable investing, more than 3,000 asset managers and owners – representing $103.4 trillion in assets under management – have subscribed to the Principles for Responsible Investment, a global initiative that aims to create a more sustainable global financial system. The six principles for responsible investment are:

  1. We will incorporate ESG issues into investment analysis and decision-making processes.
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the Principles within the investment industry.
  5. We will work together to enhance our effectiveness in implementing the Principles.
  6. We will each report on our activities and progress towards implementing the Principles.