Passive investing has been posed as a threat to the planet – but how far does the data support these claims?
The idea of incorporating gross national happiness into mainstream economic thought has long been a subject reserved for debating societies and 'lefty' thinkers. As politicians are cornered into taking immediate action on climate change, capitalism is in for a big surprise.
Recently criticised for failing to deliver returns above their peer group, gender lens funds are under immense scrutiny to up their game. And while legitimate concerns exist about how they are marketed, the lack of suitable companies remains a serious problem.
The A$150bn pension fund is using its financial heft to address modern slavery and has developed a risk-assessment tool to support its reporting requirements. But while some asset managers have shown overwhelming support, others are still burying their heads in the sand.
The year to date has seen record-breaking support for shareholder resolutions, with asset managers such as BlackRock and Vanguard stepping up their stewardship. However, a lack of data on the real-world impact means the jury is still out on their efficacy.
Border to Coast Pensions Partnership, one of the largest British retirement asset pools, is developing its approach to ESG data as it ramps up its focus on private markets, carbon measurement and diversity issues. The institution's head of internal management gives Capital Monitor the lowdown.
Despite coal's influence on global warming, less than half of the world’s largest asset managers have an investment policy in place for it, according to non-profit organisation Reclaim Finance.
As demand for sustainable investing continues its global rise, the corresponding jump in regulation has meant Australia and Europe – among the leaders in this area – have witnessed eligible ESG assets drop dramatically as a proportion of overall assets. Will Canada be next?
The spotlight is on publishers of ESG ratings with a recent damning critique coming from a prominent academic claiming their model should be ripped up. But laying the blame solely on rating agencies gives asset owners a free pass they don’t deserve.
Momentum builds behind the circular economy as investors seek better growth while tackling global challenges, while innovation in this area is de-risking investments and delivering exciting risk-adjusted returns for investors.
To ensure a safe exit, influential private equity houses are showing signs of embracing ESG within their investment practices. There is a stronger conviction that sustainability will create greater value over time. Entrepreneurs need to take note.