ESG: Refocusing on a More Sustainable Future

Back to Business as Usual?  The Evolving ESG Landscape

While the COVID-19 pandemic raged, investors focused on its effects and implications. With vaccine and central bank policy solutions mitigating the very worst effects, investor attention has now redirected. Top of mind concerns now include issues associated with a sustainable future, the climate emergency, corporate engagement, and how best to measure ESG investments.

These papers highlight various aspects of ESG investing including the climate emergency and how investors can influence change (either via engagement or by investing in industries of the future). Some of these themes are agenda items at the Virtual Sustainable Investment Forum Europe; further details can be found here.

 

RECENT ESG INSIGHTS

Corporate Sustainability: Better than you think (Enterprising Investor, 2021)

This Enterprising Investor article considers the benefits of being a good company, where sustainability, diversity, and inclusion are priorities. The authors find that such companies attract more investors and customers, and are better able to hire and retain top managerial talent.

Building Back Better: The path to net zero (Aviva Investors, 2021)

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

This paper investigates how companies and countries can contribute towards attaining a net zero world as economies recover after the Covid-19 crisis.

Impact Investing: Why it matters now more than ever (T. Rowe Price, 2021)

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

T. Rowe Price explains why and how asset managers can leverage their relationships with corporates to help deliver the positive outcomes that all stakeholders are seeking.

Podcast: Credit’s role in decarbonizing the economy (Wells Fargo AM, 2021)

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

Henrietta Pacquement of Wells Fargo Asset Management offers insights into the role that investing in corporate credit must play in progressing towards a net zero future.

How Simple ESG Tilts Affect Your Portfolio (Intech, 2021)

Intech offers suggestions to avoid some of the data challenges associated with ESG investing. The authors note that some systematic factors persist and dominate across a range of hypothetical portfolio models.

Green Bond Bulletin: The case for green sovereigns (NN IP, 2021)

NN Investment Partners assesses the green bond market noting that traditional fixed income investors can obtain potentially better risk-adjusted returns, whilst also helping fund projects that contribute to a more sustainable world.

The Investor Guide to Climate Collaboration (FTSE Russell, 2021)

This guide from Principles for Responsible Investment and the London Stock Exchange Group summarises and contextualises the various collaborative investor initiatives that have arisen because of the climate crisis.

Cut it Out! The Complex Quest to Decarbonize Heating (Aviva Investors, 2021)

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

The built environment accounts for over a quarter of CO2 emissions. This document by Aviva Investors explores different approaches to decarbonising heating. It also considers the opportunities and investment implications that arise from a concerted push towards net zero.

Responsible Investing: Five trends to watch (NN IP, Mar 2021)

NN Investment Partners identifies several trends they believe will influence the shape of ESG investing in 2021.

ESG Impact Assessment: A sell and buy side perspective (Ashurst, 2021)

In this report, Ashurst combines disparate pieces of financial services regulation from various bodies into an action point framework that both buy and sell-side firms can utilise.

Engaging Investors on ESG: A sovereign debt manager's guide (World Bank, 2020)

The World Bank suggests how sovereign debt managers can better engage with investors who are using an ESG framework as part of their decision-making process.

ESG Stewardship in Fixed Income Assets (HSBC AM, 2021)

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

HSBC Asset Management investigates the increasing attention paid by investors to stewardship issues within the fixed income space.

Podcast: The technologies contributing to net zero (BNP Paribas AM, 2021)

Thibaud Clisson, senior ESG analyst at BNP Paribas Asset Management’s Sustainability Centre, illustrates the growing range of technologies that can potentially make a net zero economy a reality.

CONFERENCE

Virtual Event: Sustainable Investment Forum Europe 13-22 Apr 2021

The Sustainable Investment Forum Europe (now in its 4th year) returns in April 2021 as a multi-part virtual event over 2 weeks.