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.
Investors’ exposure to government bonds from countries associated with human rights violations highlights the limitations of shareholder engagement. We take a look at how BlackRock and Vanguard handle this issue.
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.
In their new book, Moving Beyond Modern Portfolio Theory – Investing That Matters, Jon Lukomnik and James Hawley deliver a devastating blow to adherents of MPT. The two deftly articulate why it is not fit for purpose to tackle the challenges we face today.
The $660bn Japanese insurance company has started applying in-house ESG evaluation criteria to all its investments and set out plans to decarbonise its portfolio, among other moves that underscore its sustainability credentials.
Small steps maybe, but early-stage investment into tech companies linked to SDG 15 – Life on Land – is shooting up. Good news for institutional investors complaining about the lack of infrastructure to support investment policies around biodiversity.
The development of new ways to apply sustainable capital is truly exciting, but investors must pay close attention to how new fund offerings are created and the ESG data on which they are predicated.
Capital Monitor finds a distinct lack of variety among ESG ETFs, especially the most popular. The holdings of funds with different ESG ratings were also similar, revealing minimal differences in exposure.
UN Sustainable Development Goal 15 figures low on investors’ agenda, while their exposure to at-risk forest companies remains high.
Building trust in the nascent ESG-linked derivatives market is vital. But the hunt for liquidity could affect the impact of the new products. This will be a long-standing tension that needs to be monitored closely.
One of the world’s most influential financiers of oil and gas remains reluctant to threaten clients with funding cuts as a means to hit net zero. The US bank argues its investment-led approach to reducing carbon intensity within sector hotspots goes far enough.
The number of ESG ETF launches shows no signs of abating, and while many are now aligning with the UN SDGs, their diversity and quality are questionable.
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