ESG investors need to improve securities lending communication

Environmental, social and governance investors can lend out their securities, but greater communication and transparency is needed for it to work.

While nearly all institutional investors feel confident that ESG investing and securities lending are complementary, there is still a way to go in ensuring that securities lending programmes are fully compatible with ESG principles.

That is the conclusion of a new survey from the Risk Management Association (RMA), involving nine leading institutional investors and 44 firms.

Published in October, it showed that 95% of respondents think that ESG investors are well-placed to lend securities without conflict, yet only 18% are taking the next step to ensure their securities lending programmes align with their ESG values.

Concerns

Securities lending is a good business, generating $8.7

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