ESG and Ethical Investing

ESG and Ethical Investing - Articles & White Papers

Articles and white papers on ESG and socially responsible investing. The most popular ESG research in this section provides practical advice for tangible implementation of ESG policy, for instance, exploring a framework to integrate ESG factors into portfolio construction, and how to integrate ESG into private equity. ESG surveys have been well received, and the list below includes a survey of European ESG funds as well as a report which examines how institutional investors incorporate ESG considerations when investing in alternatives. A commonly debated issue is the question of how ESG impacts investment returns. Can socially responsible investing deliver competitive performance, or does it hurt investment outcomes? This topic is well covered in this area of our library. Other research in this section includes papers on corporate governance policy, shareholder activism and the rise of activist funds. With environmental risks and climate change an increasing concern for investors, there are a growing number of papers on fossil fuel divestment. Furthermore, increasing attention is being given to how funds can actually use their investments to make a positive change for good, and papers on impact investing have proved popular, particularly in relation to endowments. This section also includes papers on faith-based investing such as Islamic finance.
  • State Street Global Advisors

    ESG Institutional Investor Survey: Performing for the Future (SSGA, 2017)

    The adoption of ESG principles is picking up steam and moving into the mainstream, reflecting a view that ESG insights and perspectives can address multiple objectives. In this survey SSGA finds that, in addition to targeting positive social or environmental impacts, ESG criteria are increasingly seen as capable of improving investment returns. This 24 page document examines the ...

    • Professional
    • Views: 1059
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  • FTSE Russell

    ESG - Road Blocks or the Road to Integration? (FTSE Russell, 2016)

    There is a growing trend, particularly amongst larger asset owners, to consider ESG factors within core investment processes. The level of sophistication varies between markets and institutions, but the momentum is clear. This seven-page study explores some of the perceived obstacles to applying an ESG framework to the stock selection process, and sets out practical ways of ...

    • Professional
    • Views: 1105
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  • Sin Stocks Revisited: Resolving the Sin Stock Anomaly (Journal of Portfolio Management, 2017)

    Various studies report that investing in “sin stocks”, that is firms which make money from human vice, such as alcohol, tobacco, gambling and weapons, has historically delivered significantly positive abnormal returns. This finding has inspired the hypothesis that sin stocks are being shunned to such an extent that they end up being systematically underpriced, enabling ...

  • Fidelity International

    Not just Green Bonds: Awakening the green giant (Fidelity International, 2017)

    Climate change poses one of the biggest challenges of the 21st century. Still, fixed income markets lag in their response; the ‘green’ bond market remains modest, with some environmentally conscious investors deterred by its lack of standardisation and uncompetitive returns. However, we think there is a way to address these investor concerns by targeting carbon ...

  • Invesco (Europe)

    Responsible investing and active ownership (Invesco, 2017)

    The consideration of environmental, social and governance (ESG) issues in investing has grown in importance and developed in its implementation in recent years. Different terms, often used interchangeably, are used to express the various approaches: these include responsible investing (the term preferred at Invesco) and sustainable investing.

    In the past, ESG issues typically ...

  • Willis Towers Watson

    Future Fund and Willis Towers Watson 2017 Asset Owner Study

    This study was commissioned by Future Fund, the Australian SWF. It aims compare best practices across leading asset owner funds with reference to benchmarks. The authors aim to reveal opportunities for idea sharing, development, and challenge between these funds. Eight specific focus areas emerge from the study: Culture, Diversity and EVP; Effective Decision Making; Long-Horizon ...

    • Professional
    • Views: 1009
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  • CFA Institute

    Do Social Responsibility Screens Matter When Assessing Mutual Fund Performance? (Financial Analysts Journal)

    Regarding the contribution of socially responsible (SR) screening to mutual fund performance, we propose a new decomposition of the variability of SR mutual fund returns that isolates the contribution of SR screening, allowing it to be compared with other, traditional sources of performance. Our results, based on a sample of SR equity mutual funds, show that SR screening does ...

  • Aberdeen Asset Management

    ESG: Coming into the Mainstream (Aberdeen AM, June 2017)

    ESG and related types of investing are slowly but surely coming into the mainstream. Socially responsible investing (SRI), which involves screening out investments based on certain criteria, has been available for decades but investors are increasingly moving to a more nuanced approach of integrating qualitative ESG considerations into investment analysis.

    Click on the relevant ...

  • UBS Asset Management

    Up in the air on carbon: How investors can leverage carbon data (UBS Asset Management, 2017)

    Much of the investment industry has begun incorporating carbon emissions data into investment decisions, but the way forward is complex and requires analysis that goes beyond standard carbon emissions data. Investors who focus on simple solutions such as divestment or footprinting without considering these other factors may end up divesting shares of innovative companies and ...

  • S&P Dow Jones Indices

    The Carbon Scorecard (S&P Dow Jones Indices)

    There is a recommendation from the Financial Stability Board that asset managers now report on the carbon exposure in their portfolios to manage climate-related risks. This report assesses the carbon risks and opportunities of major global equity indices. A range of metrics reveals the carbon footprint of each index, alongside exposure to fossil fuels, stranded assets, and ...

  • MSCI

    2017 ESG Trends to Watch (MSCI)

    • 11 Apr 2017
    • Company: MSCI

    This year may usher in a fundamental rethink for investors. Underlying all the major trends we identified for 2017 is a strategic decision point – do we change the way we think about investing, or is this business as usual in a new order?

    • Professional
    • Views: 1807
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  • William Blair

    ESG Investing and Portfolio Integration (William Blair, 2017)

    Interest in environmental, social, and governance (ESG) factors is expanding at a rapid pace among institutional and retail investors around the world. In this paper, we provide an overview of the sustainable investment landscape, including investor adoption and implementation trends, as well as important sustainable investment themes from an industry ...

  • Norges Bank - Government Pension Fund

    Responsible Investment Report (Norges Bank IM, 2016)

    This detailed paper provides insights into how NBIM operates in the area of responsible investing. It explains the purposes behind NBIM's responsible investing philosophy and the main pillars of its process. The paper covers the standards set, the research undertaken, and the approach taken to company engagement and voting. Finally, it describes NBIM's ...

  • PLSA - Pensions and Lifetime Savings Association

    UK Pension Fund Stewardship Survey 2016 (PLSA)

    The PLSA's annual stewardship survey examines how UK pension funds are exercising their responsibility to be good stewards of many billions of pounds of funds under management. The survey considers stewardship principles, shareholder engagement and voting, class actions, asset manager selection and review, fund manager capacity and a variety of other topics within the umbrella ...

  • Eaton Vance Institutional

    The Financial and Societal Benefits of ESG Integration: Focus on Materiality (Eaton Vance, 2017)

    The first study in the Calvert-Serafeim Series, “The Role of Corporation in Society: Implications for Investors,” establishes that the public has set new expectations for corporations and how they should balance the needs of their financial and non-financial stakeholders. With governments in debt and the public sector resource-constrained, informed publics are looking ...

  • Franklin Templeton Investments

    EMEA investors balancing long-term liabilities with market opportunities (Franklin Templeton, 2017)

    How are institutional investors’ strategic objectives being impacted by economic and political factors? In a global environment fraught with risk, to what degree are these investors able to act tactically while maintaining their long-term strategic focus? This report considers these issues in detail with a survey of senior institutional investors throughout the EMEA region.

  • Eaton Vance Institutional

    Sustainability disclosure is helping drive investment decisions, HBS faculty study finds (Eaton Vance, 2017)

    A new study by Harvard Business School Professor George Serafeim finds that sustainability disclosure is helping drive investment decisions, as investors use that information to sharpen company valuations relative to industry peers. The Serafeim study focused on companies that voluntarily disclosed environmental, social and governance (ESG) factors recommended by the Sustainability ...

  • Bank of America Merrill Lynch

    ESG Part II: A deeper dive (BofAML, 2017)

    What if we told you how to avoid stocks that go bankrupt? We think you would listen.

    Environmental, Social & Governance (ESG) factors are too critical to ignore, in our view. In our earlier report ESG: good companies can make good stocks, we found that ESG-based investing would have offered long-term equity investors substantial benefits in mitigating price risk, earnings ...