Ross Kerber and Simon Jessop

(Reuters) – Sustainability-focused investors believe a little effort can go a long way toward finding profitable opportunities buried in incomplete corporate environmental or social impact filings.

That is according to several speakers on a panel at  the  Reuters Next conference, who described how they choose sustainable investments and work with executives at a time when there are few standard requirements for how major U.S. and European companies should detail carbon emissions disclosures or workforce demographics.

Eoin Murray is head of investment for Federated Hermes (NYSE :). He said portfolio managers can dig deeper by comparing reports from multiple companies.

Murray stated, “As an active supervisor, I don’t mind if some data isn’t exactly line up. It means that the rewards go to the people who do their research properly and uncover the true gems.”

ClearBridge Investments’ managing director Mary Jane McQuillen stated that some companies desire to make their businesses more sustainable. However, other companies feel defensive and don’t want to take on another investor.

McQuillen stated that a third group admits they do not know a lot about sustainability reporting and seeks input from shareholders.

The problem is that we don’t understand it all. It would be great if you, an owner, could assist us with understanding the issues that may affect my specific industry and my company.

U.S. regulators have begun to develop guidance on how companies must disclose information about things like emission. The European regulations are only beginning to take shape.

Global leaders met in Glasgow in November to discuss climate change. They agreed to take additional steps to cut carbon emissions.

Julie Gorte (senior vice president, Impax Asset Management) stated that investors cannot learn all about companies’ governance, environmental or social impact without complete reporting.

For companies, the mantra is “Look, people are going find out things about you regardless of what you say.” Gorte stated, “If you want them know the truth, tell them.”

To watch the Reuters Next conference please register here https://reutersevents.com/events/next/