Research Into Investors’ Attitudes Towards Environmental, Social and Governance (ESG) Information and Nonfinancial Reporting, as well as Its Role in Their Decision-making

21 january 2019

The EY Climate Change and Sustainability Services team has issued its 4th research report, which provides insight on how investors have come to place ever-greater importance on the role that environmental, social and governance (ESG) information and nonfinancial reporting factors play when evaluating companies in which to invest. This year’s study reveals a notable consensus on the importance of ESG or nonfinancial information in investor decision-making. Globally, investors expect more abundant and more useful reporting of material nonfinancial performance information at a consistent and high level of quality.

Key points:

  • an increasing reliance on ESG;
  • increasing demand for higher-quality non-financial data from public companies;
  • while disclosures have improved, they remain uneven;
  • more concern over the physical risks of climate change;
  • demand for investment-level non-financial accounting standards;
  • collaboration is critical to close the information gap between investors’ need for nonfinancial information and the information provided by issuers.

What does this mean for organizations in Kazakhstan? The Government of RoK is making strong efforts to develop the Kazakhstan stock market, improve its liquidity and raise foreign investments. Large international institutional investors place strong reliance on ESG and non-financial information of issuers. Therefore, we believe there are four main areas that companies should consider:

  1. Establishing a structured materiality analysis process.
  2. Measuring social and environmental outcomes.
  3. Measuring long-term value.
  4. Reporting more comprehensively on all climate risks and engaging with stakeholders, including investors.

Contact information

We hope that you found this overview helpful. For additional information, please contact the following professional:

Victor Kovalenko

EY Kazakhstan

Director, Climate Change and Sustainability Services

Tel.: +7 727 258 5960

Founding Members

Air Astana JSC KPMG Tax and Advisory LLC Rio Tinto Mining and Exploration Limited Wood Group PSN Kazakhstan