Even though shares in iSignthis Ltd (ASX: ISX) have been suspended for around six weeks as the regulator looks into its corporate governance and financial reporting the company boasted of some good news today.
According to iSignthis, the ESG corporate ratings provider Institutional Shareholder Services Inc. has given it a 'prime' ESG rating.
The rating is based on the environmental, social and governance principles followed by a company, with the ESG industry exploding in popularity recently as institutional investors place more emphasis on it.
One of the reasons more emphasis is being placed on ESG is because the large clients of institutional investors who are effectively paying them fees want to see that they consider ESG principles when making investments.
In other words if a powerful fund manger wants to attract inflows it better have ESG credentials and policies to show its clients.
Unfortunately, iSignthis's ESG certificate is unlikely to impress the compliance team at the ASX that continues to look into the business.
This week the ASX's compliance team confirmed the shares will remain suspended while it continues to investigate a number of serious allegations made against the business.
