It is difficult to start any article without referring to the threat presented by the coronavirus sweeping across countries. The human impacts are clearly devastating for anyone affected, even if the overall impact is at present relatively small in the context of major pandemics through history. The economic and financial impacts are also proving significant.
ACCORDING to the latest study from Credit Suisse's in-house think tank the jury is still out on whether ESG and sustainable investing really outstrips traditional investment offerings. Published by the Credit Suisse Research Institute, in collaboration with London Business School and Cambridge University professors, the 2020 edition of the Credit Suisse Global Investment Returns Yearbook
For years, BlackRock (NYSE:BLK) CEO Larry Fink has used his annual letter to CEOs to tout the importance of social progress and challenge shortsighted businesses and governments that just focus on profitability. This year's letter made waves because he's finally putting his money where his mouth is by introducing some concrete steps in response to climate change. In sum, Fink's
More than 30 trillion dollars has poured into global sustainable investments, up 64 per cent since 2014, according to a discussion paper by McKinsey and Company which seeks to describe how approaches to environmental, social, and governance (ESG) concerns build business value. According to the management consultancy, paying attention to ESG does not compromise returns.
No matter where you look, climate change is at the centre of every conversation. With a wide range of global sustainability challenges and complex risks on the rise, investors are starting to re-evaluate traditional portfolio approaches. The ESG Boom Today, many investors want their money to align with a higher purpose beyond profit. This infographic
Sustainable investing has moved to center stage in early 2020. In his latest letter to CEOs Blackrock CEO Larry Fink writes that sustainability, which involves integrating environmental and social concerns into business decisions, would be at the center of his firm’s investment approach. He also foresees an imminent and “fundamental reshaping of finance” that would better recognize
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
Where disclosure and data exist, there tends to be record levels of sustainable investing. Financial products related to the Sustainable Development Goals can only be developed once fundamental data is available across companies. Environmental, Social and Governance (ESG) data should be treated as fundamental rather than alternative data. Businesses today face significant environmental and social
In my annual review of big themes in sustainability and business — in other words, how companies manage environmental and social issues and opportunities — I’ve always included a changing climate as a big story. But it’s now not an annual story; it’s permanent. The list of extreme, tragic, and very costly weather events this year — record heat in Europe, hail in
SUSTAINABLE INVESTING is one of those terms that looking up in the dictionary only leads to needing to look up even more terms in the dictionary. What should be a straightforward process is actually the fork in a trail that branches in a half dozen directions. Because there is no one way to invest sustainably; there are
Investors have joined grassroots activists to mitigate the toll that mass incarceration takes on the US: human suffering and 6% of GDP. The direct cost of incarceration in the US is $80 billion, but when it includes the costs to the 2.3 million individuals jailed in the US and their families and communities, the total
KEY POINTS 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 new, but momentum is growing as
1. The Growing Immediacy of Climate ChangeDirectly experiencing extreme and volatile weather events will spur increased investor concern about climate risk in their portfolios.Climate change is becoming a more immediate concern as people everywhere are directly experiencing extreme and uncommon weather events. The hottest July on record occurred this year, and 2019 is on track to be
Sustainable investing is one of the most rapidly growing parts of the market, increasing from $23trn in 2016 to $31trn last year. And impact investing is one of the most rapidly growing parts of sustainable finance, doubling each of the past two years to $502 billion in assets under management according to the Global Impact Investing
If you’re wealthy and you care about the world, then sustainable or ESG (Environmental, Social and Governance) investing allows you to put money where your mouth is. Sustainable or ESG investing means that portfolios flow into sustainable funds or companies which provide a healthy return while making the world a better place. But in practise
As institutional investors spend an increasing amount of time thinking about environmental, social and governance risks and strategies for dealing with them, the issue of climate change continues to push its way to the top of the list. According to the U.S. SIF Foundation's biennial Report on U.S. Sustainable, Responsible and Impact Investing Trends, released
The smallest of the institutional investors, endowments and foundations at $2 trillion in global assets under management have historically had an outsized influence on the trajectory of investment management. The investment goal of ensuring that the endowment’s rate of consumption can be sustained and relatively limited liquidity needs—typically about 5% of the average of the endowment’s value
Sustainable investing is the process of investing in sustainable companies or funds. Some people call this ESG (Environmental, Social and Governance) investing, others simply "ethical investing". Whatever the terminology, this form of investing money, usually by institutions or high net worth individuals (HNWIs: people with a net worth over $1 million), is supposedly changing the
The first thing to note: I’m on the fence about this whole capitalism thing. As I think about investment and savings, I’m always wondering if 70-year old Andrea will have the opportunity to reap the rewards of my decades of investment, or will the white supremacist, fossil fuel evildoers have their way and kill everything livable and beautiful
Ethical, SRI, ESG, best-in-class, stewardship, sustainability and impact. As its popularity has grown, the responsible investment landscape has become confusing and overcrowded with terminology that excludes rather than enables. There is also little clarity or agreement on what the various terminologies mean. We believe confusion and poorly regulated product labelling may potentially lead to mis-selling.