Are we closing in on a common language
on sustainable investments
Financial markets rely on a common language. Before investors can take a view on a company’s prospects, they need to understand its assets and liabilities, its cashflows and earnings. The current consensus on financial accounting standards took hundreds of years to evolve; a common language for sustainability metrics that companies can use to report their performance is still evolving. But due to the billions of dollars flowing into sustainable investment strategies the pressure is building for standardisation.