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ESG - Stewardship, Sustainability, Society and Slavery

ESG - The Top White Papers so far in 2018

It's time to take a moment and look through a greener lens at the investment process itself.  In what ways are investors currently incorporating ESG risks in their analysis, ESG issues in their thought processes, and an ESG-mindful methodology in the practice of investing?

This selection of papers includes a case study on environmental and social concerns relating to modern slavery within the cobalt mining industry, a guide for climate and disaster-proofing portfolios, and recommendations for ESG leadership and stewardship within the investment community and society as a whole.

Savvy Investor

Modern Slavery: The True Cost of Cobalt Mining (Hermes IM)
(For compliance reasons, this paper is not accessible in the USA)
Hermes discusses an interesting case study in ESG issues involving the supply chain for cobalt, the impact that cobalt mining can have on indigenous populations, and the increased demand for cobalt in lithium-ion batteries.

Investment stewardship for positive societal impact (Eaton Vance, Jan 2018)
(For compliance reasons, this paper is only accessible in the USA and Canada)
Given the increased institutional focus on ESG, this paper encourages large investors such as active managers and pension funds to steward industry and systems-level use cases for merging ESG issues into investment processes.

Video: ESG - four underappreciated risks (Fidelity International, Feb 2018)
(For compliance reasons, this paper is only accessible in the UK & Europe)
From data breaches at a telecoms company to the ramifications of economic populism, Fidelity analysts detail their experiences of ESG-related risks they see as often underappreciated.

2018 ESG Trends to Watch (MSCI)
MSCI divulges five ESG trends shaping the approach of investors to future environmental, social, and governance-related risks and opportunities.

Managing ESG Risk in the Supply Chains of Private Companies and Assets (UNPRI)
This UNPRI guide helps investors manage supply chain ESG risk within portfolio companies by explaining why ESG factors matter to the supply chain, and how investors can work with companies to alleviate ESG supply chain risk.

Sustainable Factor Investing (Invesco)
(For compliance reasons, this paper is only accessible in the selected geographies)
The fields of ESG and factor investing are no longer separate, thanks to sustainable factor investing.

How ESG Affects Equity Valuation, Risk, and Performance (MSCI)
With a watchful eye on the distinction between correlation and causality, this paper examines the ways in which ESG characteristics lead to better financial performance within corporations.

The Financial and Societal Benefits of ESG Integration (Eaton Vance)
(For compliance reasons, this paper is only accessible in the USA and Canada)
This paper furthers research exploring how ESG data could potentially boost portfolio returns, finding that ESG analysis can potentially uncover previously unvalued opportunities and risks not factored into traditional analysis.

Screening for Success (eVestment)
eVestment explains the manager selection process and the types of screening tasks that investors could perform if they were interested in filtering the universe of available managers for particular attributes.

Measuring Physical Climate Risk in Equity Portfolios (Deutsche AM)
This whitepaper provides tools for addressing and monitoring the physical effects of climate change for investors inclined to build portfolios that are resilient to climate changes and natural disasters.

Environmental, Social and Governance Survey (CFA Institute)
This survey by CFA Institute provides important insights into the perceptions around ESG issues and ESG data among CFA members.

Long-Term Thinking: The renewable revolution (Legal & General IM, 2018)
(For compliance reasons, this paper is not accessible in the USA or Canada)
The way that we produce and consume energy is changing, and a renewable revolution is in effect. This represents an enormous opportunity for investors.

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