We are witnessing a plethora of ESG (Environmental, Social and Governance), SRI (Socially Responsible Investing) and other ethically based strategies being launched; in the UK and internationally.
In the rush to satisfy this growing consumer demand, companies are launching products amidst a data fog where it is difficult to see or identify what is really being held within these funds. Whether it is deliberate or accidental, clients who wish to satisfy their twin goals of return terms as well as having regard for the planet and society, are being taken advantage of in numerous ways.
Impact investment is becoming increasingly scalable and inclusive to a wider set of investors looking for investable solutions that can offer tangible, real world impact alongside attractive returns. There are now several ways in which investors can access impact opportunities, and this paper takes a close look at impact investing through private debt and listed equity markets, respectively.
Impact investment can help to tackle major global sustainability challenges and facilitate our low-carbon future
Investors recognise how impact investment can help them meet their investment objectives over the long term
Opportunities to achieve real-world impact and earn attractive returns now span various asset classes, asset types and impact themes
More than three people were murdered each week in 2018, with countless more criminalised, for defending their land and our environment.
Calls to protect the planet are growing louder – but around the world, those defending their land and our environment are being silenced. More than three such people were murdered on average every week in 2018, with attacks driven by destructive industries like mining, logging and agribusiness.
Our planet faces a number of major challenges, such as world hunger and financial inclusion. It can’t just be up to individuals and non-profits to help make change. Financial institutions have a role to play too. If we can convene and catalyze capital with companies and causes, it will help many of these issues get solved. This piece is the first in a three-part series on sustainable finance.
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Every year, interest in sustainable investing continues to accelerate. Assets in sustainable investment-related products reached US$30.7 trillion at the start of 2018, up 34% from the beginning of 2016. Nearly 50% of assets in Europe while in Canada, Australia and New Zealand, more than half of all professionally managed assets were in at least one of the seven sustainable investing strategies.
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Rebuilding sustainable stocks of wild-catch fish could transform Japan’s seafood industry, increase profits, preserve its reputation and reduce financial risk to investors, according to a report published by Planet Tracker.
In this research we assess the evidence on important questions relating to workplace inclusion, to better equip people professionals to truly deliver change and support their organisations to transform for the better. We hope this research supports practitioners to build their knowledge and expertise and enables them to deliver lasting change for their organisations and the many stakeholders they serve every day
Solutions above and beyond traditional market capitalization-weighted indices are becoming the de facto choice for benchmarks as asset owners continue to discharge their fiduciary role of investing responsibly against the backdrop of increasing investor awareness and an evolving legislative landscape for sustainability. Typically, implementing sustainability or ESG considerations during investment decision-making is likely to result in portfolios that deviate from standard market value-weighted benchmarks.
The unintended exposures – and hence risks – lead to divergent characteristics and performance, tracking errors and additional management costs. In our paper on the STOXX Europe 600 ESG-X Index, we concluded that the latter delivers a risk-return performance profile that does not differ significantly in statistical terms from the STOXX Europe 600 Index while also complying with typical exclusion-based sustainability approaches. In this paper, we extend the analysis to other flagship ESG-X benchmarks (including the STOXX Europe 600 ESG-X) that cover both regional and global indices that were launched in May of this year.
Click here to read the report on the STOXX website
This report focuses on the issues raised by climate change from the financial asset value perspective. While we are already seeing the impacts of climate change, we have not yet passed the point of no return from the more extreme scenarios of physical damage and value destruction highlighted in this analysis. There may be no place to hide, but there are plenty of ways to fight.
Government Pension Investment Fund (GPIF) manages and invests Japan’s pension reserve fund, which is used to pay Employee Pension Insurance and National Pensions. Our goal is to contribute to the stability of the pension system by earning returns on our investments and distribute these to the government.