The development of metrics to gauge companies' adherence to ESG standards is still at its early stages, but technology is helping hasten the process.

"We are at the nascent phase of developing enough metrics to measure companies’ adherence to ESG standards," says Gary Greenberg, head of emerging markets at Hermes Investment Management in a podcast interview with Daniel Yu, The Asset editor-in-chief.

Greenberg, who manages the US$3.4 billion Hermes Global Emerging Markets fund since July 2011, reckons that over the next 10 years as the internet-of-things become prevalent there will be sensors and demand-side companies that can be deployed to help measure compliance.  

"What needs to happen is that ownership of companies has to enforce a new kind of moral capitalism whereby companies take the responsibility for their actions not only to create wealth but allow the environment that we all live in to remain liveable and healthy," he adds. "Engaging with companies, we believe, is the best way to go."

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