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.
The number of firms incorporating ESG metrics into leadership remuneration is rising amid shareholder pressure and as CEOs recognise the commercial and reputational benefits.
UN Sustainable Development Goal 15 figures low on investors’ agenda, while their exposure to at-risk forest companies remains high.
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.
A lack of technical guidance on Europe’s SFDR legislation has left asset managers to fill in the gaps, leading to confusion and serious risks of both greenwashing and market fragmentation.
The proliferation of ESG indices and the funds launched off the back of them is great business, but the ESG ratings underpinning them are under intense scrutiny.
Momentum is gathering behind President Joe Biden’s environmental push, which includes a proposal for corporate climate disclosure. It will add a burden for companies, but the environmental risk of inaction could be a lot higher.
China’s policy lead on green finance is impressive, but investor anxiety about state control over the debt markets means its development may be suppressed.
Companies need to take their heads out of the sand and deal directly with shareholders' concerns over ESG – unless they don't want to tap cheaper capital, of course.
With an estimated 25 million people in forced labour, hundreds of companies should be identifying human rights abuses every year, yet very few do. Shamefully, investors don't apply enough pressure, while existing regulations lack bite.
The European Commission wants to compel around 50,000 companies to report across a range of ESG factors. Investors, banks and NGOs are broadly aligned, but reservations exist.
The company's top sustainable finance bankers acknowledge the sector is guilty of not “driving enough capital” to reach net-zero targets, but say huge structural issues are a barrier for change.
Aided by better science, climate change lawsuits have nearly doubled since 2018, posing a growing risk to businesses and governments failing to keep up their environment commitments.
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