Investors increasingly claim to be incorporating ESG factors into their portfolios. But are they doing so genuinely and for the right reasons, and what should best practice entail in ESG integration? The concept is still vague, with a clear definition some way off.
CIB is leading the charge among Egypt's banks to build a sustainable finance market, with help from the International Finance Corporation and at the behest of the central bank. Corporates are showing rising interest in issuing green bonds but will face ESG reporting from next year.
While banks prefer to hire former bankers for ESG jobs, there is a strong demand for individuals with sector-specific, non-financial backgrounds, Capital Monitor analysis reveals.
A recent essay by the former global head of sustainable investing at the world’s largest asset manager poured scorn on the climate claims of ESG investment strategies. But experts argue that while ESG investing is far from perfect, it still has a significant role to play in helping to achieve net zero.
Hopes are rising that asset managers will become more open to implementing British pension schemes’ voting preferences in light of new, less prescriptive recommendations from a government-backed taskforce.
The US bank recently acquired NN Investment Partners and is offering tools to help clients with their low-carbon transition, says sustainable finance head John Goldstein. But its climate policies and disclosure lag behind industry best practice, though there are plans to remedy that.
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.
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.
The IPCC’s latest report is unequivocal: humans are warming the planet. With COP26 looming, everyone is clear that rapid policy action is required to mobilise trillions of public and private finance to reverse the damage done. We outline what policies they are.