Investment managers around the world will be focusing more on corporate governance, environmental management and globalisation when working out where to park their money, according to a new Mercer Investment Consulting report .
And we're talking lots of cash here: 157 of the world's biggest investment management firms managing assets worth more than $US20 trillion.
All this means one thing: depending on where they are, the people directing where the money goes could be putting pressure on boards to improve their performance on environmental issues, demonstrate fair treatment of suppliers and employees, and ensure the company's levels of disclosure are appropriate and transparent.
A lot of these issues have been lumped in the vague category of "socially responsible investing" and "corporate social responsibility". But if the study's findings are right, it's another sign that CSR issues are moving into the mainstream over the next 10 years.
I said it depends where the fund managers are because the report shows they respond to it differently in different parts of the world. For example in the USA, the hot issue was corporate governance but managers couldn't get that excited about climate change. You'll find the findings for the USA here . It's a different story in other countries.
But whatever the differences, these findings are worrying news for company directors. Looks like they'll be under more pressure than ever before. Are company boards up to it?
no comment untill now