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ESG: Closing the Knowledge Gap

Shining Some Light on ESG Investing

A recent survey conducted by Vontobel found that many investors are still in the dark about sustainable investment practices. The following papers attempt to shine some light on the subject, working to close the knowledge gap on ESG investing. 

Several papers provide overviews of ESG investment practices, reviewing the UN's SDGs, ESG integration, climate risk within portfolios, ESG's place within indices and other current topics.

esg investing light

Act ESG: Closing the ESG knowledge gap (Vontobel, 2019)

Vontobel recently surveyed 4600 investors in 14 countries about ESG principles, finding that many of them are geared towards adopting sustainable practices personally, yet they are unaware of the particular opportunity set and approaches for sustainable investments.

Reducing carbon risk in institutional portfolios (Candriam, 2019) 

For compliance reasons, this paper is only accessible in certain geographies

Candriam provides a solution for evaluating the holistic carbon risk of an organization by looking at greenhouse gas emissions.

The art of responsible investing (NN IP blog, 2019)

A key facet of successful responsible investing is finding a way to effectively combine financial returns with societal returns. Investors are increasingly seeking to integrate ESG concerns into their investment processes. NN IP explains how investors can work towards increasing their impact.

Friend or Foe: Is ESG taking a bite out of your diversification? (LGIM, 2019)

For compliance reasons, this paper is NOT accessible in the United States and Canada

Diversification might be the only free lunch, but does a tilt towards companies with positive ESG characteristics somehow undermine portfolio diversification?

Responsible Returns: Better Stocks For A Better World (AB, 2019)

For compliance reasons, this paper is only accessible in North America and South America

The authors outline a process where they can identify the companies that have both positive long-term return potential and that support the UN's SDGs.

Discover Material Insights with S&P DJI ESG Data (2019)

S&P Dow Jones Indices presents some insights from their ESG scoring process, which is enhanced by data from RobecoSAM.

Private Equity ESG Report 2019 (Robeco)

Robeco's ESG report for PE investors summarizes responses to a survey about ESG integration, performance, climate change risk, and impact reporting within the private equity sector.

Future-Proofing Your Asset Allocation in the Age of Mega Trends (BNY Mellon/CREATE-Research, 2019)

In this thoughtful and detailed document, Professor Amin Rajan considers how investors should respond to two huge secular themes: artificial intelligence (AI) and climate change.

Video: ESG - From Exclusion to Integration (Style Analytics, 2019)

The way investors and investment professionals are looking at ESG is changing rapidly. Style Analytics has created a video series to enable investors to consider some of the key questions.

The Transition to a Low Carbon Economy: Protecting Multifactor Indices (Scientific Beta, 2019)

Scientific Beta describes how ESG-minded investors can promote a low-carbon transition by reallocating towards companies that are less carbon-intensive.

A Blueprint for a Better Future – Engagement on the UN SDGs (Hermes IM, Sep 2019)

For compliance reasons, this paper is NOT accessible in the United States

Hermes IM dives into the UN SDGs, describing the call to action for all countries to adhere to the 17 goals and 169 targets that they describe.

Responsible Investment as a Motivator for Generation DC (Franklin Templeton, 2019)

For compliance reasons, this paper is only accessible in certain geographies

How can responsible investment practices help to increase UK defined contribution pension participation rates?

Is climate-change risk all about fossil fuels? Think again. (MSCI blog, 2019)

MSCI looks at the implications of adapting to a low-carbon world for five different types of companies.

ESG - Made Simple Guide for UK Pension Schemes (PLSA, 2019)

For compliance reasons, this paper is only accessible in the United Kingdom

How can ESG concepts be integrated within the oversight process and investment strategy of pension schemes in the UK?

An investor's guide to sustainable investing (UBS AM, 2019)

This paper is actually a collection of essays on ESG concerns and sustainable investment practices, written by MSCI, UBS Asset Management, and Principles for Responsible Investment.

Upholding Global Norms and Protecting Multifactor Indices against ESG Risks (Scientific Beta, 2019)

The motivations for integrating ESG data into the asset management process are varied and diverse. In this paper, Scientific Beta presents an ESG Fiduciary Option that may be useful, not only for responsible investors wishing to dissociate themselves from unethical companies, but also for investors seeking outperformance whilst limiting reputational risk.

Decarbonizing the Belt and Road: A Green Finance Roadmap (2019)

This paper reviews the carbon footprint of countries within China's Belt and Road project and the amount of green finance being deployed. There are 126 countries involved in this initiative.