A FTSE Russell ESG rating is the culmination of a rigorous process that combines various aspects of an issuer's total Environmental, Social or Governance exposure and performance, into a single score. Whereas the process synthetizes ESG information objectively, a company’s
At first glance, investing to achieve outcomes aligned with the Sustainable Development Goals may appear inconsistent with an optimised portfolio outcome under the modern portfolio theory. However, tailwinds or risks associated with SDG-oriented investments may not be appropriately priced in
Institutional investors are facing increasing government, regulatory, and member demand to invest sustainably. Sustainable investments were typically focussed on the environment and climate change mitigation strategies; but, although carbon-friendly assets are pivotal, investors are missing out on potential returns generated by other sustainable themes.
Market weekly: Being open to an inclusive growth approach goes hand in hand with a focus on long-term performance and contributes to a better climate for doing business and investment. As investment specialist Ramon Esteruelas and ESG research analyst Delphine
Opportunities presented by public policy in the Biden era. Within T. Rowe Price, our Public Policy Research team supports our analysts and portfolio managers through all stages of the investment process. We work closely with our environmental, social, and governance (ESG) team to
In the second piece of our three-part report1 , we discussed the micro and macroeconomic impacts of China’s green transformation. While it is difficult to precisely quantify these impacts as China transitions to a carbon-free economy, we do know that
Issuance of green bonds began more than 10 years ago in response to (institutional) investor concerns about climate change and its political and economic implications.[1] They have become a major pillar of an asset class of sustainability-linked fixed income securities that continues
The Great Instability BNP Paribas Asset Management is delighted to invite you to join us for the next session in our virtual event series. On 29 April, Pamela Hegarty, Portfolio Manager of BNP Paribas Asset Management’s Disruptive Technology strategy, joins
In February 2018, Templeton Global Macro (TGM) released its original paper on the topic of environmental, social and governance (ESG) factors in sovereign fixed income investing. The paper (Global Macro Shifts—issue 9 [GMS-9]) explored the team’s novel approach to ESG
Climate change is the defining challenge of our time. Human activities are held responsible for the long-term heating of Earth’s climate system, observed since the pre-industrial period. The burning of fossil fuels is considered the primary contributor to global warming.
Market weekly: Green bonds have grown and matured as a fixed-income segment over the past decade. The need for climate action has spurred a raft of green projects and activities that combat climate change and other environmental challenges and seek
In this memo, we aim to explain how the Bitcoin network functions as a unique energy buyer that could enable society to deploy substantially more solar and wind generation capacity. This deployment, along with energy storage, aims to facilitate the
In April T. Rowe Price published an article named “Why ESG Factors Matter in Asia Credit Investing”. In the article, they discuss the upcoming importance of ESG factors when looking at Asian credit. T. Rowe Price expects that the ESG
Earth Day is an annual global event supporting environmental protection that takes place on 22 April. To support this year’s theme ‘Restore Our Earth’, some of Columbia Threadneedle’s fund managers and analysts present their thoughts on important environmental issues from
De verkiezing van Joe Biden in de VS en Covid-19 zijn de katalysatoren die ervoor zorgen dat de ESG én rendementsbewuste belegger de komende jaren volop aan haar trekken zal komen. Binnen de sectoren “Schone Energie” en “Duurzame Voedselindustrie” zullen er zich volop interessante belegging mogelijkheden voor gaan doen.
First, we look at a recent publication from GMO named “The duration of value and growth”. Here they look at the comparison between bond duration and value and growth. The advancement of the coronavirus in the market has reinforced the idea that value stocks are ‘short duration’. This means that whenever bond yields rise …
Already mainstream in Europe, responsible investing is fast becoming a key consideration in Asia as well. The integration of environmental, social and governance (ESG) factors into investment decisions has gained recognition as an important method of downside risk management and a driver of risk‑adjusted returns. Looking specifically at credit investing, 60% of regional investors expect governance …
A compelling investment opportunity: Japanese equities offer attractively priced and more visible earnings growth for 2021 and beyond. Nevertheless, Japanese equities are currently trading at a discount to global equities. And Japan equity markets have outpaced major developed market equities both in 2020 and year-to-date in 2021 as the world seeks to transition to a post-pandemic recovery.
Webinar – Ook voor obligaties is het tijd om kleur te bekennen Webinarserie: Long Term vs Short Term: Let’s Talk ESG Ook voor obligaties is het tijd om kleur te bekennen. Op dinsdag 30 maart om 15:00 organiseert Alpha Research het derde
Vorig jaar was beurstechnisch een meer dan uitstekend jaar voor bedrijven in de “Environmental Solutions” sector. Als proxy voor deze bedrijven kan de iShares Global Clean Energy ETF (rhs) worden genomen die in 2020 de Nasdaq met …
Green bonds first emerged as issuances by supranational development banks. Since then, the market has grown considerably, with greater issuer diversification across countries and sectors (see Exhibit 1). Yet, not all green bonds are created equally, and we believe in the need to discern among green bonds in our investments.
Virtual Summit – Future of Green ETFs Summit KraneShares’ Future of Green ETFs Summit: Investors can utilize ETFs and index funds to implement efficient ESG investment strategies now that scoring methodologies are widely established. However, the resulting impact for society
Ushered into existence by government subsidies and guarantees, the renewable energy infrastructure sector has grown into a diverse, global and highly competitive asset class. Appetite for renewable energy infrastructure among asset owners has been extremely …
In a recent publication by DWS, forecasts are made for 10-year returns on ESG indices. These capital market assumptions are made to assist investors in constructing strategic long-term portfolios that keep in mind the traditional financial metrics and ESG impact metrics. The construction of the forecasts is done incorporating the …
It is part of a broad package of legislative tools designed to reorient capital towards more sustainable businesses. The main objective is to ensure that financial market participants are able to finance growth in a sustainable manner over the long term, while combating so-called greenwashing in which the positive environmental …
Governments everywhere are racing to lock in historically low borrowing costs by issuing ever longer dated debt – in recent years Mexico and Argentina even managed to sell century bonds. That presents several new challenges for fixed income investors. Particularly those who own …
Ratings agencies are missing crucial aspects of ESG analysis and taking a top-down approach that leads to perverse outcomes such as tobacco companies scoring highly on ESG factors, says Aegon Asset Management. Euan Ker, Sustainable Investment Analyst at Aegon AM, believes ratings agencies employ …
ESG factors play an important role in initial investment decisions, as well as the ongoing monitoring of holdings and fund managers after investment. Investors should identify and address material ESG risks and opportunities, both prior to investment and during the ownership period not only when investing directly, but also indirectly …
As attention increases for investors to take action on climate change, bondholders are taking active steps to influence issuers, while pension funds have the investment scale to meaningfully drive ESG progress.
UBP’s EM Sustainable Corporate Bond strategy was launched three years ago. Since then, the sustainability …
The rotation towards value is a key theme of our 2021 investment outlook. As the US economy moves towards reopening and a return to normalcy, we expect an overly accommodative Federal Reserve (Fed) to let the economy ‘run hot’ in
Webinar – Innovation in response to Regulation Following on from our webinar to discuss the implications of EIOPA’s recently issued opinion on the review of Solvency II, we next turn our attention to how insurers and asset managers are looking
Beleggers met allocaties naar obligaties uit opkomende markten moeten nu begrijpen wat de werkelijke impact is op opkomende economieën van langetermijnfactoren zoals de klimaatverandering en de ontwikkeling van menselijk kapitaal.
In many ways, 2020 was a turning point. One key area within environmental, social and governance (ESG) investing was putting a spotlight on corporate behaviour and what constitutes business resilience.
Within the context of growing demands on the private sector to constructively address the world’s environmental, social, and governance (ESG) challenges, shareholder resolutions can be an important tool to persuade companies to increase their focus on key societal challenges. The year 2020 presented a range of themes for consideration, and our approach …
Webinar – Where next for markets – focus on Asia Register for a webcast with our Chief Strategist, Luca Paolini, where he centres his thoughts on Asia, and in particular China. Amongst other topics, Luca will cover: why investors are still
Is our board focused on the right issues? Does our board have the appropriate skills and governance process for effective ESG oversight?
One of the pushbacks that investors in fixed income funds often make is: “Can bondholders really influence companies on sustainable issues in the way equity holders can?” It’s a fair question – after all, we provide companies with capital but we don’t own any equity, nor do we have any voting rights. However, to dismiss fixed income investors as mere bystanders would be …
2020 saw unprecedented change around the globe – economically, socially and politically. The most significant impacts resulted from the global coronavirus pandemic which has potentially changed many aspects of life for ever. The investment landscape has been changing too …
A paler shade of green If only sustainable investing was just about right and wrong; sustainable and unsustainable. Alas, it’s not so simple. Clearly, there are sustainable ‘bad boys’ such as coal companies and weapons manufacturers which sustainable funds do
Webinar – Taking temperature for 2021 Invesment solutions for challenging climate change February 10, 2021 – 4:00 p.m. (GMT) | 5:00 p.m. (CET) | 11:00 a.m. (EST) Despite the pandemic, climate change remains on top of the investors’ agenda. The
Demand for sustainable investment solutions continues to grow. The longterm consequences of short-term decisions are becoming clearer for the broad society. From consumers and businesses to governments and investors, we believe a broad secular shift toward sustainability is underway. The concept of responsible investments (RI) is strengthening every year as investors …
How Are Investors Changing? ESG Asset Owner Survey How are investors’ priorities and practices changing when it comes to ESG investing, sustainability and impact? What are today’s key ESG implementation challenges? Seeking clarity on the issues, we surveyed 256 investors
Webinar – Technologie en de weg van grijs naar groen in China Aflevering 1 van webinarserie “Long Term versus Short Term: Let’s Talk ESG” Alpha Research organiseert een webinarserie van 6 afleveringen met het thema “Long Term versus Short Term:
Webinar – Beyond ESG integration: Sustainability alignment in Sovereign portfolios At Aegon Asset Management, we believe that sustainability can be the cornerstone of sovereign debt portfolio management. Responsible investing enables investors to align their core values within a portfolio and
Covid-19 has exposed a lot of societal issues, be it job security or workplace safety, however the social aspect of ESG remains one of the least explored by investors today. Speaking to Citywire Selector, BNP Paribas Asset Management’s Jane Ambachtsheer, global head of sustainability, and Adam Kanzer, head of stewardship Americas, said lots …
De S in ESG even belangrijk als de E en G Covid-19 heeft vele gevolgen. Eén ervan is dat er meer aandacht is bij beleggers voor het sociale aspect in bedrijven. Uit een enquête van BNP Paribas Asset Management medio
Webinar – China: de ruwe diamant polijsten China’s snelle binnenlandse en geopolitieke ontwikkelingen en de ruwe diamant van beleggingskansen, verdienen aandacht van beleggers. Tegelijkertijd is China echter nog steeds ondervertegenwoordigd in indices, kent het een volatiele interne markt en de
The 2016 Paris Agreement is at a critical juncture for at least two reasons. First, it recently celebrated its five-year anniversary. It is far too early to analyse the Agreement’s “achievements”, but that will not stop critics from trying. This scrutiny should be welcomed by those whose fear that not enough attention is being paid to rising temperatures’ grave threat to mankind. After all, 2020 was the second-hottest …
