In the "Responsible Investment: Our Progress on Active Ownership and Solutions in 2022" report, Aegon Asset Management (Aegon AM) outlines its evolving efforts towards responsible investing amidst an industry landscape that prioritizes climate action and greenwashing regulation. In 2022, Aegon
In "UBAM – Positive Impact Emerging Equity | Impact investing in EM: after a challenging first quarter, opportunities are emerging", the document discusses the compelling business case for impact investing in emerging markets, despite the difficulties of the initial quarter.
In the insightful discussion, "UBAM – Positive Impact Emerging Equity | Third anniversary," portfolio managers Mathieu Nègre and Eli Koen celebrate the fund's third anniversary with a reflection on their journey so far. The conversation underscores UBP's pioneering spirit in
The text articulates the vital role private equity can play in transforming a 'grey', high-carbon economy into a 'green' one, reflecting sustainable practices. The author highlights the necessity of long-term investments for sustainable growth and prosperity, despite existing pressures to
Capital Market Assumptions March 2023 The text revolves around the exploration of asset allocation strategies against the backdrop of climate, social and geopolitical disruptions. The author highlights the consequences of the Ukraine conflict on the global energy supply and inflation,
The text provides a comprehensive exploration of green and social bonds within the context of Environmental, Social, and Governance (ESG) investing. It examines the existing premiums associated with these instruments, asserting a surprising lack of correlation between green and social
Guide to the Markets The text above presents a comprehensive economic and market analysis by the Global Market Insights Strategy Team, led by notable experts such as Nimish Vyas, Vincent Juvyns, and Tilmann Galler. It dives into an array of
The text focuses on the increasing importance of climate change management in determining sovereign and credit risk. Notably, green bonds are being used to steer capital towards climate change prevention and adaptation. Moreover, supranational organisations are seen as key in
Capital Market Assumptions March 2023 The annual edition of Capital Market Assumptions takes a more in-depth approach this year by considering the impact of climate change and social considerations on economic variables and asset class behaviors. The need to balance
The banking industry's landscape varies dramatically on either side of the Atlantic. Europe is focused on regulatory issues, particularly around climate risks and disclosure, with new regulations set to take effect in December 2023. These rules will require banks to
The text delves into the complex landscape of ESG (Environmental, Social, and Governance) investing, highlighting new regulatory challenges and potential misrepresentation. The authors conducted a survey among 210 fund selectors, or gatekeepers, in Europe and Asia, revealing diverse views on
The text focuses on exclusion lists, which help investors align their portfolios with their values, and the hidden tracking error they can cause. Recent broad energy exclusions due to climate concerns have introduced noticeable tracking error impacts, presenting challenges for
Divest or engage to meet climate commitments? In "Divest or engage to meet climate commitments?", the main theme revolves around reconciling net zero goals with investments in fossil fuel companies. The text discusses the challenges faced by asset managers in
In this research summary, the author discusses the rising importance of biodiversity in investment decisions. As the fight against climate change gains momentum, investors and regulators are increasingly considering environmental sustainability in their portfolios. Biodiversity, a complex and multifaceted concept,
This text from State Street Global Advisors discusses their process of generating long-term asset class forecasts, which are forward-looking estimates of total return and risk premia. The forecasts incorporate inflation, economic growth, ESG considerations, and current market conditions. The main
In "Capital Market Line: Quarterly Five-Year Forecast of Relative Risk and Return Across Asset Classes – The Pendulums Are Swinging," the authors discuss a reset of inflationary forces in 2023 and the likelihood of a profit recession rather than an
In "Robeco’s approach to biodiversity – Towards the integration of nature-related risks, opportunities, and impacts in our investments," the authors emphasize the role of the financial sector and asset management industry in preventing biodiversity loss. They discuss Robeco's strategic priorities,
Incorporating Climate Change: 30-Year Forecasts for Asset Class Performance and Returns This paper, titled "Long-run asset class performance: 30-year return forecasts," discusses Schroders Economics Group's annual thirty-year return forecasts for a range of asset classes, incorporating the impact of climate
Driving impact in listed assets investments Impact investing has become a powerful approach to achieving financial returns while addressing the world's most significant social and environmental challenges. This essay discusses AXA IM's approach to impact investing in listed assets, which
Geopolitical situations over the past year have led to concerns around ESG – will it fade away from market consciousness or is it here to stay? In addition to the economic realities, there are four additional themes that will impact
Aegon Asset Management's report, "Net-zero Investment Framework: Carbon Footprinting," highlights the challenges that investors face in constructing investment portfolios that align with the goal of achieving net-zero emissions by 2050. The report emphasizes the lack of a global market standard
A decline in the ecosystem services that nature provides will initially pose a direct physical risk to businesses as harvests become more unreliable, weather patterns change and pollinators no longer support agriculture. The risk is both event-driven, e.g. flooding or
The political realm continues to have an outsized influence on the retirement industry. Whether it's through the passage of the Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0, or through the Department of Labor's (DOL) final letter on
General demographics trends can be decomposed in four subcategories: population growth, population ageing, migration and urbanization. Changes in any of these segments can cause different types of impact on both economic and social developments depending on the geographical region these
Key points Water stress is a matter of availability, quality and access – and can unevenly affect countries, industries and individuals We think there may be particular risks in emerging countries where agriculture and industry can demonstrate high levels of
On one level, it is easy to understand the scale of emissions from a company’s operations. If a factory is pumping out millions of plastic widgets, we can measure the greenhouse gases (GHGs) produced as it does so, and the
ESG integration can be an essential component to unlocking value. KEY INSIGHTS An increasing number of investors now acknowledge that ESG and value investing are not mutually exclusive. If ESG integration is implemented properly, it can be a crucial component to
"De enorme groei van het geproduceerde en menselijke kapitaal, gaat ten koste van het natuurlijk kapitaal. Dat is niet langer zo vol te houden.” In allerlei opzichten komt er een steeds duidelijker prijskaartje te hangen aan de wijze waarop bedrijven
De baanbrekende deal op de VN-top om het biodiversiteitsverlies een halt toe te roepen wil bedrijven en beleggers in de frontlinie plaatsen in de strijd om de natuur te beschermen.
The rating of Greece continues to improve. This is anything but a surprise. This is linked to cyclical aspects and in particular to the rebound after the crisis of the last decade. But there are also some developments, particularly on
In this Q&A, Lisa Beauvilain and Chris Dodwell explain why biodiversity loss is critically important for investors to consider, and how investment opportunities are arising from reducing pressure on the natural world. Why does Impax see biodiversity loss as a
Five perspectives on ESG in bond investing: Views from our fixed income team Equity investors are often associated with ESG-related discussions and considerations. Bond investors can also have unique and valuable perspectives on ESG matters. Bond investors have access to
Part 4: Taxonomy What is the EU environmental taxonomy? The European Union’s environmental taxonomy is a classification system that translates the EU’s climate and environmental objectives into criteria for economic activities to be considered “environmentally sustainable” or “green”. For an
Biodiversity, human activity and corporates Biodiversity is part of the Earth’s natural capital and considered the cornerstone of a well-functioning planet. The many benefits to humans provided by natural capital are often integral to the provision of clean drinking water,
Overview Sustainable investment strategies continue to grow and have moved from the niche into the mainstream. According to the Global Sustainable Investment Alliance (GSIA), sustainable investment assets under management in five major markets (Europe, United States, Canada, Australasia and Japan)
An empirical analysis of ESG factors and pillars and the implications for European equity markets. Responsible investing has gained significant traction over the past decade, with environmental, social and governance (ESG) factors attracting greater attention2 . ESG scoring systems enable
ESG is an acronym for Environmental, Social, and Governance. It was first proposed by the United Nations Environment Programme as a concept in 2004, providing a complementary perspective for evaluating company performance and management in addition to financial performance. Its
ESG (environmental, social and governance) ratings are complex and getting more so. Lively debate has been triggered by discrepancies such as Tesla being removed from the S&P 500 ESG index over concerns about working conditions and automated driver safety, while
To many investors, this year will feel like a rollercoaster. Several major developments have impacted the world economy, and in response, financial markets have reacted fiercely by repricing asset markets. Especially at times like these, it’s important to take a
Fixed Income Impact portfolios can be flexibly managed to client objectives Increasingly, companies are being measured not only by their earnings and cash flow, but according to the effect their activities have on the environment and society. As a result,
Economische ontwikkelingen: ◼ Groeiverwachtingen krabbelen op, met name in Europa ◼ Inflatie daalt verder ◼ Forse daling kortlopende …
After the Gold Rush Institutional investors forced to dig deep for opportunity as they brace for inflation or stagflation in post-pandemic markets. After seeming to recover from the pandemic in 2021, the global economy relapsed into what may be classified as a
Opkomende markten gaan efficiënter om met hun koolstofgebruik. Dat zou beleggers moeten helpen om hun bedrijfsobligatieportefeuilles af te stemmen op duurzame doelstellingen. Hoe meer fossiele brandstof je verbrandt, hoe rijker je wordt. Sinds de industriële revolutie gaan hogere koolstofemissies en
The past 30 years have seen a bigger improvement in human prosperity than all of the past centuries combined. We have built more roads, buildings and machines than ever before. More people are living longer and healthier lives and access
Hydrogen can be used as a carrier of energy, and as an input into chemical and industrial processes. Clean hydrogen is, therefore, a crucial decarbonisation tool for a range of industrial activities including steel, aluminium, iron and chemical production. We
We have witnessed the evolution and growth of ESG over recent years and now for many investors it is front and center on their agendas and a growing part of the overall picture. The science (as it relates to the
In this paper, we investigate the relationship between biodiversity and companies, through the lens of corporate bonds. We focus on acute biodiversity events and address biodiversity as a risk, considering its looming losses. We illustrate the material and tangible operational
In this first podcast series on Alternative Fixed Income and ESG we take a look at ESG integration in Alternative Fixed Income: more specifically in Dutch mortgages, Asset Backed Securities and the Government Related Investment Fund. Why invest in Alternative
Institutional investors are increasingly turning to natural capital investments (NCI) for inflation protection, diversification benefits, stable returns, and solutions to global environmental challenges. The combination of low volatility of investment returns and a competitive historical performance allows natural capital investments
Waarom de particuliere gezondheidszorgsector beleggers de mogelijkheid biedt om aantrekkelijke rendementen te behalen en het 'sociale' aspect van ESG aan te pakken. Bij duurzaam beleggen wordt de 'S' in ESG vaak verwaarloosd. De aandacht van beleggers wordt meestal getrokken door
