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.
This detailed report (169 pages) is a collaborative effort between CFA Institute and Principles for Responsible Investment. It provides important global insights into the ESG integration techniques of leading portfolio managers and analysts around the world.
Climate change could be one of the defining problems of the 21st century. Financial markets form part of the solution, but 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. We…
The Environmental, Social and Governance (ESG) investing landscape is maturing. Presently, expansion is not only in dollar amounts — ESG investing now represents about 20 percent of total assets under professional management in the United States — but also in the development of new policies like the EU Non-Financial…
With responsible investing and ESG integration now in the mainstream investment arena, the focus is gradually shifting to the actual impact companies are having on society and the environment. A positive impact can lead to more sustainable longer-term business models, supporting valuations and risk–return characteristics of…
Sustainable investing is much more than a catch phrase. It is the combination of traditional investment approaches with environmental, social and governance (ESG) insights. Drawing on the insights of BlackRock’s investment professionals, we show why we believe it is feasible to create sustainable portfolios that do not…
To analyse credit risks with greater precision, we developed a pricing model last year to capture the influence of environmental, social and governance (ESG) factors on credit spreads. It showed a convincing relationship between ESG risk and credit spreads, manifesting as an ESG-risk curve. After expanding this research, we…
An increased understanding of the importance of corporate governance has not meant the end of corporate governance scandals. Governance has continued to evolve, and a number of issues have come forward since the last edition of this manual. This version updates the reader on various aspects of governance such as board…
Can ESG-related considerations offer an information edge for alpha-seeking equity investors? Our research says yes. Anna Lester and Chen He talk through how we put ESG to work to help boost returns while managing risk.
This paper will discuss how investing in social infrastructure in Europe can lead to positive impact-based outcomes for communities and the environment. We will define social infrastructure, define impact investing and explain our mission and approach to bringing these two areas together. We will identify key challenges and…
Europe has long been a hub of sustainable finance. Now, a 2018 package of reforms proposed by the European Commission (EC) marks a new milestone for the industry. These legislative proposals could generate ample growth for investors and asset managers as the EC aims to realign interests across the investment lifecycle. ESG…
Climate change will affect both the value of assets and the capital return on assets over the long-term, which is why understanding its impacts is relevant to the fiduciary duty owed to savers and fund beneficiaries. This 29-page report by Robert Nash (commissioned by ClientEarth) provides a summary of currently available…
Calvert Research and Management views long-term ownership as encompassing the responsibility to participate in the governance of the firms that we hold in our portfolios. Engagement is a right and a responsibility of ownership.
In this study, QMA proposes a novel approach to ESG investing capable of generating comparable alpha to non-ESG portfolios and ranking companies on ESG even if they don’t report sufficient data.
The 2018 Canadian Responsible Investment Trends Report reveals that responsible investment (RI) is continuing to experience rapid growth in Canada. Survey data collected from more than 100 asset managers, asset owners, and publicly-available sources indicates that Canadian investors increasingly view ESG factors as important…
This report, authored by Pinsent Masons, aims to help pension trustees understand the steps that they can take to engage with climate risk in appropriate and proportionate ways.
Like all investors, sustainable investors juggle various motivations: improving investment performance, achieving an economic or a societal outcome, and investing in ways consistent with their values/beliefs. The challenge for sustainable investment professionals is to understand their clients’ motivations and then shape…
This 42-page report has been authored by the Institutional Investors Group on Climate Change (IIGCC). It acts as a guide to address climate risks and opportunities for asset owners. The guide is structured around the framework provided by the Financial Stability Board's (FSB) Taskforce on Climate-related Financial…
With the launch of the European Commission’s (EC) sustainable finance action plan, the topic of sustainable investing - which considers environmental, social, and governance (ESG) factors and their impact - is reaching a new level of importance in the investment management profession. This survey by CFA Institute was…
In this paper, Callan's Anna West lays out the major considerations for long-term investors in regards to climate change. We also identify solutions and areas of progress for those who are seeking to address climate-related risks as well as benefit from emerging opportunities. While climate change poses numerous moral…
