Since the 1990s, it has become increasingly normal to take environmental (E), social (S), and governance (G) factors into account when considering investing decisions. Yet the roots of what we now call “ESG investing” go as far back as the 1800s, when religious beliefs were an investing criterion for Methodists, Muslims, and Quakers. More recently,
It’s clear that sustainable investing has been thrown into the limelight.
Increasingly, investors are seeing both the financial and social imperative for sustainable investing. In particular, the rapid growth of green bonds—a fixed income investment that is designed to raise funds for the climate or environment—is booming.
The above infographic from Raconteur navigates the growing green bond market
Neither military power nor wealth can stop the destructive global spread of COVID-19, a tiny member of the Coronavirus family. Its full human impact and economic cost will not be known for months to come. The virus is only now spreading amongst the most vulnerable populations, the millions who are cramped into refugee camps, and the hundreds of millions who live in city slums
Bain & Company’s 2020 private equity report showed the significant growth of impact investing with a 154% increase in assets acquired since 2015, as well as an increase in the size of funds raised. ESG investing is a real consideration and it is being embedded in companies’ corporate strategies, as James Duncan explains.
This represents a shift to
There is absolutely nothing wrong with senior management and directors of companies across America reviewing, analyzing, measuring and integrating into company operations, a focus on environmental, social, and governance (“ESG”) considerations. Nor is it a new concept. As one general counsel of a Fortune 200 company told me last summer, “We’ve been integrating ESG
The wealth management industry is continuously changing. As we have seen over the last few years, active management is falling out of fashion and has become less ‘fashionable’ with asset allocators every year this millennium. In the last decade since the global financial crisis, we have seen the relentless expansion of the passive management
- 2019 saw a total of 479 green bonds issued worldwide, up by a quarter compared to the previous year.
- And 2020 is set to be a “bumper” year for green bonds, according to Linklaters.
- Hedge fund managers are also feeling the ethical squeeze, with growing investor demand the key driver in hedge fund ESG
Well-meaning investors heeding the rising call to buy “sustainable” stocks might not think of emerging markets first. Images of developing-world industry still tilt toward raw materials and belching factories paying starvation wages—not companies that will rack up high environmental, social, and governance scores. “A lot of people interested in ESG have steered away from emerging
If you have gone to Goldman Sachs Group Inc’s internet home page since mid-December, it would be reasonable to wonder if you had stumbled into some kind of parallel universe. Visitors are met with a background of lush greenery, along with a banner headline: “Our Commitment to Sustainable Finance.”
The company recently announced a $750 billion,
- ESG investing — or strategies that take a company’s environmental, social and governance factors into consideration — grew to more than $30 trillion in 2018, and some estimates say it could reach $50 trillion over the next two decades.
- These strategies, which include impact investing, are not
At the crossroads of technology, innovation, and sustainability, artificial intelligence has the ability to make a dramatic impact on ESG investing—that is, accounting for environmental, social, and governance risks and opportunities in investing. While AI can unearth key data for investors seeking sustainable investments, discerning unreliable information will be a key challenge and humans will not be
From driving a hybrid car to buying from ethical brands, or meticulously separating your recycling, we’re all thinking about how we can have a more positive impact on the world we live in. And it is no different with investors.
Recent research shows that more than one in three family offices
There’s bad news and good news about sustainable and impact investing in the U.S., says Andrew Lee of UBS.
The bad: Adoption is slow, with just 12% of U.S. investors owning sustainable investments. The good is that sharp growth may lie ahead. UBS expects adoption to increase by 58% within five years.
AS PEOPLE’S INTEREST IN socially responsible investing grows, mutual fund and exchange-traded fund issuers are introducing more investment vehicles to allow people to align their dollars with their values.
Among the $46.6 trillion of U.S. professionally managed assets at the end of 2017, $12 trillion – roughly 26% – was earmarked for sustainable investing, according
Interest in ESG or “environment, social and corporate governance” issues has increased greatly in recent years.
It has been driven by a number of factors, including investors seeking to avoid reputational risk, which has been more prominent following news events such as the Hayne Royal Commission, and concerns around climate change and
Some research may lead plan sponsors and advisers to believe only Millennials and women are most interested in sustainable investing, but research from Morningstar finds most investors, across ages and genders, have clear preferences for environmental, social and governance (ESG) investment products.
Morningstar developed a new tool, called My Sustainability Profile. The tool is
Climate change has already begun to affect business, with extreme weather, flooding, wildfires and drought threatening company assets and supply chains. As the environment evolves, companies that improve their energy efficiency and create new products and services will survive and companies that are slow to change will struggle. The financial services community is keenly
Socially responsible investing has gained traction in recent years. Traditionally, an underperforming niche product ignored by most serious investors, it has become a key investment rationale and a differentiator among portfolio managers.
There has been tangible growth of investment in companies that make a positive impact in terms of environmental, social, and governance issues—or ESG for
Screening companies and investments using environmental social governance (ESG) criteria can positively impact investment returns and stock market performance, an analysis released recently by one of Europe’s largest asset managers has found.
Amundi, which manages more than €1.47tr worth of assets, looked at investment data from 2010-2017 to analyse the performance of 1,700 companies across five
STANDING next to a plaque in the pure silent outback of Australia, the statement opened with ‘when the first Europeans came here…” with no mention of the indigenous people who had lived there for 45,000 years before. They say history is written by those in power, but it’s also written in the present tense in