Responsible Investor

Sustainalytics examined the possible implications of a change in China’s leadership on environmental, social and governance (ESG) policy developments. The views and backgrounds of the incumbents will likely result in a shift in political focus that will favour certain industries and companies, shaping selected ESG risks and opportunities for investors. The report is part of a research series focused on responsible investment in Asia.

Timberland, along with farmland, infrastructure, and other real assets, has been growing in favour among institutional investors due to the attractive characteristics of the asset class. New Forests’ publication Timberland Investment Outlook: 2013-17 focuses on key trends in institutional investment into timberland and provides recommendations on the development of internationally diversified timberland portfolios. The report also explores key trends in the forest sector, including the international supply-demand picture, potential for new markets for biomass from forests, and the growing role of sustainability in forest management. The report is a follow-up to New Forests’ first Timberland Investment Outlook, released in 2011.

The RI/MSCI Round Table Report 2013 explores where and how ESG risk can have significant and pressing financial consequences for institutional investors. The presentations and discussion, which took place in New York, brought together a panel of noted thinkers, practitioners and academics in sustainable finance for their thoughts based broadly around a series of topical ESG themes in institutional investment. This is the second Responsible Investor / MSCI ESG Research Roundtable, the first, published in May 2012 is available to download here.

Northern Trust, April 2013: Two big trends in institutional investing right now revolve around increasing exposure to emerging markets and environment, social and governance (ESG) screens. Allocation to emerging markets grew 30% in the last three years alone, according to research by the Ethical Investment Research Services (EIRIS).

AXA Investment Managers: Until a few years ago, it was rare for investors to consider environment, social and governance (ESG) factors for asset classes beyond traditional equity and corporate fixed income. Today, investors increasingly express interest in ESG analysis that can be applied to asset classes such as sovereign debt. This interest has only been amplifi ed by the euro zone crisis, which has brought the evaluation of sovereign issuers’ credit worthiness to the fore. In this research, AXA Investment Managers present two ways that investors may incorporate ESG factors into a sovereign debt portfolio using a new country ESG analysis framework.

Ecclesiastical Investment Management. Managing actual and potential human rights risk has become critical for some businesses operating in ‘high-risk, high-impact’ sectors. Globalised operations and supply chains have considerably heightened the risk, and getting it wrong can have catastrophic effects on reputation and the ‘licence to operate’. In this Amity Insight, we look at the international context for protecting and respecting human rights – and how business is affected.

EIRIS: This report combines investors’ insights with data from EIRIS’ Emerging Markets Service to explore the strong currents that are carrying forward corporate performance and disclosure on Environmental, Social and Governance (ESG) issues in emerging markets. The report surveys global investors to assess what changes, if any, there have been since 2009 in the level of investment in emerging markets and in those ESG issues that interest responsible investors the most. Analysis focuses on 800 companies spread across 30 emerging economies.

Website lists pension funds and managers with shares in oil giants.