BETTER FINANCE believes that the main challenges and opportunities for next 10 years will be:
- Reorienting the equity and bond funding towards sustainable investments.
- The identification of sustainable investments must be based on facts and science, not on emotions and ideologies, and on the probability to have a positive impact on the environment, society and corporate governance.
- Addressing short-termism and barriers to shareholder engagement in corporate and investor governance:
- professional equity investment intermediaries (asset managers, pension funds, life insurers) must engage with investee companies for long term sustainability,
- and barriers to the engagement of individual equity investors (who are mostly long term oriented) must be lifted.
- Addressing the issues related to investment advice, in particular regarding ESG matters: it should be unbiased, competent and intelligible.