Why Investors Should Worry About Discrimination

2020 saw a surge in corporate disputes over ethnic and racial issues. Few companies go beyond regulatory disclosure requirements and the risks for investors are growing

Sara Silano 16 August, 2021 | 12:38PM
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The "S" factor of ESG is becoming increasingly critical for investors. Until recently, the focus was mainly on gender issues, but ethnic and racial issues have also jumped to the fore since last year due to the pandemic that has amplified inequalities among the population.

In its interim report the Platform for Sustainable Finance, an advisory body to the European Commission, two dimensions are hypothesised. The first focuses on the policies, processes and practices within companies that determine their social impact with reference, for example, to labour standards and the most vulnerable groups. The second refers to products and services, i.e. initiatives to contribute positively to the “S” factor.

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About Author

Sara Silano

Sara Silano  is Editorial Manager for Morningstar Italy