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.
The proposed EU taxonomy will be a ‘living’ list of all economic activities that can genuinely be considered environmentally sustainable, defining and providing a common understanding of what is ‘green’.
The amount of ESG information disclosed by corporations is on the rise. However, investors still often lack a full understanding of potential financially relevant ESG risks. How can they gain a better sense of where their investments are most vulnerable to ESG-related disasters?
Can you do well by doing good? Environmental, social and governance (ESG) investing has undeniably begun its ascent to the mainstream. This trend not only suggests investors are more readily prepared to pursue a responsible agenda, but also that they believe it doesn’t have to come at the expense of returns. In fact, there…
Good governance is crucial to all boards, whether they oversee a multinational corporation, a multi-billion pound pension scheme, or a national charity. There is no one-size-fits-all approach to how boards should be run but we have learned that there are plenty of ways to evolve and enhance effectiveness.
This report focuses on the impact that real assets have on climate transition and the role they play in supporting United Nations’ Sustainable Development Goals (SDGs). It demonstrates that, despite the disclosure limitations inherent in this largely private asset class, investors can have a meaningful influence through…
Climate change is recognized as one of the preeminent global risks today — with extreme weather having the potential to compound societal stresses that encompass economic disparity, human migration and interstate conflict. To illustrate the sources of climate-altering carbon emissions, Exhibit 1 details the global “carbon…
This report aims to provide recommendations for China’s future, mandatory environmental, social and governance (ESG) disclosure framework, prepared by its financial regulators. These recommendations, supported by discussions with Chinese and international stakeholders, intend to inform the China Securities Regulatory…
Gold is rare; as with other precious metals, a lot of ore is mined and processed to produce small amounts of pure metal. Consequently, gold production uses a lot of energy. On a per volume basis, therefore, it has a relatively high GHG intensity. However, our findings indicate that total GHG emissions from newly-mined gold…
Whether it is the Paris Agreement on Climate Change, the UN Sustainable Development Goals (SDGs) or the aims of the EU High Level Expert Group on Sustainable Finance, one thing is clear, none of these will be achievable without a major redirection of capital by the world's asset owners. Looking at the conditions under which…
Portfolio managers and analysts are increasingly incorporating environmental, social, and governance (ESG) factors in their investment analyses and processes. However, ESG integration remains in its relative infancy, with investors and analysts calling for more guidance on exactly “how” they can “do ESG” and integrate ESG…
Asian pension funds and other asset owners (monetary authorities, central banks, and sovereign wealth funds) face significant short- and long-term threats from water and climate risks. In this brief, we assess the depth of these risks arising from both adaptation and mitigation and discuss how they are embedded in Asian…
Climate change is a subject that has been largely addressed from both macroeconomic and energetic standpoints. Integration of climate variables and natural capital into the traditional economic framework can appear conflicting with the notion of infinitely growing economies exploiting finite resources, which questions the…
Trustees of pensions, charities, and personal trusts invest tens of trillions of dollars of other people’s money subject to a sacred trust known in the law as fiduciary duty. Recently, these trustees have come under increasing pressure to use environmental, social, and governance (ESG) factors in making investment decisions…
The S&P ESG Indices align investment objectives with environmental, social, and governance (ESG) values. The indices, which include the S&P 500 ESG Index can serve as benchmarks as well as the basis for index-linked investment products. The S&P ESG Indices’ broad market exposure and industry diversification…
Nearly $31 trillion in assets under management were invested in funds that consider ESG issues in their investing process as of January 2018, a 34% increase from two years previously. Transparency is key to understanding what this expansion means.
Socially responsible investing (SRI) has been around for more than a century. It involves applying social and environmental factors to choose investments. The principles appeal to many people. Yet, one question lingers for individual and institutional investors alike: if I adopt SRI principles, will it help my investment…
As the world sees climate risks more clearly than ever before, investors focused on sustainability are leading global efforts to define new paths for shared action. Financial modeling is playing catch-up to scientific documentation of the likely impact of climate change, with crucial headway being made in the area of climate…
Forestry investors are exposed to a range of environmental, social and governance (ESG) factors. How those factors impact investments – ultimately, whether they materialise as risks or opportunities for value creation – depends largely on an investor’s responsible investment approach. ESG factors must be integrated at each…
Building on our studies showing a strong relationship between the environmental, social and governance performance of companies and their credit spreads, we have partnered with researcher Beyond Ratings to determine whether similar connections exist in the sovereign credit market.
