LONDON/DUBAI (Reuters) - Saudi Aramco’s biggest asset could also be a liability. The state energy giant’s vast oil reserves – it can sustain current production levels for the next 50 years – make it more exposed than any other company to a rising tide of environmental activism and shift away from fossil fuels.
The basis for evaluating and selecting asset managers for ESG investing are no different from those used for conventional evaluations: philosophy, process, and people. But to ensure your managers align well with your ESG investing goals, you’ll want to overlay ESG perspectives.
The investing world is seldom cut and dry. Nowhere has this become more apparent than investing in environmental, social and governance issues, also known as ESG.
The steady buildup of environmental, social and governance (ESG) investing in the past few years can make even the most skeptical investors wonder if they’re missing out on an opportunity.
The new leaders of the European Union, which has relentlessly championed open markets, will, ironically, likely trigger a conflict between climate preservation and free trade. But this clash is unavoidable, and how Europe and the world manage it will help to determine the fate of globalization, if not that of the climate.
Given the breadth of the environmental, social, and governance topic itself, ESG risks can take on a wide variety of forms. One can easily draw parallels between identifying material ESG characteristics and identifying ESG risks facing corporations. But the devil is in the details, with many specific ESG risks requiring another level of analysis in order to be evaluated,…
We need to solve climate change, but we also need to make sure that the cure isn’t more painful than the disease. Abandoning fossil fuels as quickly as possible, as many environmental activists demand, would slow the growth that has lifted billions of people out of poverty.
There are many ways to apply responsible investing principles to portfolios. But some investing approaches may be more conducive to creating a portfolio with strong environmental, social and governance (ESG) qualities than others. Concentrated equities are a case in point.
Redirecting small portion of subsidies would unleash clean energy revolution, says reportSwitching just some of the huge subsidies supporting fossil fuels to renewables would unleash a runaway clean energy revolution, according to a new report, significantly cutting the carbon emissions that are driving the climate crisis.Coal, oil and gas get more than $370bn (£305bn) a year in support,…
In many ways, the problems surrounding Nissan Motor Co. have spawned renewed interest in the state of Japan’s corporate governance.Initially, Nissan’s corporate governance practices came ...
Investors managing more than $34 trillion in assets, nearly half the world's invested capital, are demanding urgent action from governments on climate change, piling pressure on leaders of the world's 20 biggest economies meeting this week.
To the dismay of many energy experts, the World Bank recently rather capriciously decided to stop funding virtually all new fossil-fuel plants. But phasing out readily available coal is a move that most major developing countries simply cannot afford without adequate incentives.
The World Economic Forum's Global Gender Gap Report covers the issue of gender parity from a multitude of angles. Although many strides have been made in recent years regarding educational attainment and health-oriented goals, there is still a wide gulf between men and women across the globe when it comes to political empowerment and economic opportunities. The investment industry should…
There is an ever-increasing expectation amongst stakeholders that asset owners and asset managers will engage meaningfully with company management on ESG issues. Below we highlight some of the best, recent white papers and research, providing tips, tools and examples of how investors can actively engage company management for the benefit of all.
A new generation of online financial advisers allow investors to bypass funds and customize portfolios to match their environmental, social or governance-related goals.
Emerging markets are full of potential but notoriously volatile. Can applying an environmental, social and governance approach to investment make for a smoother ride?
The Japanese real estate sector is embracing a global standard for assessing sustainability in hopes of attracting investors who adopt "environmental, social and governance" -- or ESG -- investment principles. So far this year, over 70 Japanese companies have had their ESG performance assessed, up about 50% from three years ago.
Norway’s US$1-trillion fund—the world’s biggest sovereign wealth fund—sent shockwaves through global markets nearly two years ago when it said in November 2017 that it recommended the removal of oil and gas stocks—around US$35 billion worth of shares—from the fund’s equity benchmark index to make Norway’s wealth and economy less vulnerable to a permanent drop in oil and gas prices.…
Companies that promote social value are on the rise. Specially, those that are based on new technologies and innovative ideas are the ones more attractive to investors. All those conditions have met in the latest deal between Places for People and Impact Reporting. An award-winning placemaking and regeneration company, the first one, is investing in a Mancunian tech start-up, Impact Reporting…
European funds managing $2 trillion in assets called on cement companies to slash their greenhouse gas emissions on Monday, warning that a failure to do so could put their business models at risk.