With many asset owners historically reticent, and some unable, to invest in the renewable energy market, has 2021 proved a turning point for institutional investor appetite in this crucial asset class?
Asset owners and managers are becoming more proactive in assessing positive and negative impact in respect of the UN’s Sustainable Development Goals. But some experts feel they can go further.
The US drugs giant will use proceeds from its second sustainability bond issue to tackle the pandemic, including in emerging markets. ESG head Chris Gray seeks to dispel scepticism by explaining the deal's rationale, while treasurer Brian McMahon discusses the $1bn bond’s pricing.
The UK is about to launch its first green sovereign bond programme, which will incorporate innovative social indicators. Senior banking executives expect it to boost the corporate debt market, but want more specifics on impact benchmarking targets and deadlines.
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.
One-fifth – and counting – of the world’s largest companies have committed to achieve net-zero carbon emissions, largely by 2050. But there is no legal or regulatory recourse if they don't, and seemingly little appetite for that to change.
Recognised as a leading asset owner in portfolio carbon reduction, New Zealand Superannuation Fund is further refining its environmental investing strategy. The state institution is looking to do earlier-stage deals and use more impact-focused asset managers, among other things. Here's how.
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.
Investors are increasingly joining the IMF, OECD and World Bank in pushing for a global system for carbon pricing. Implementing it remains politically problematic, but the ever-louder alarm bells over climate change are raising hopes it could happen.
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.
Used as part of a broader set of tools to assess banks, investors say the new reporting requirement will determine which institutions are taking green finance seriously. However, it lacks the sensitivity to capture transition finance, for example.
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.
The huge amount of money spent to help economies recover from the Covid crisis was a missed chance to fight climate change, say experts. But there are still tools available to support economies in building back greener.
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