Measuring biodiversity impact: Individual KPIs versus ESG ratings

For the last two decades, ESG ratings from data providers have been an easy-to-use measure to assess the sustainability profile of companies on several ESG criteria. However, while climate-related data has become more widely available, biodiversity-related data points still lack comprehensive coverage leading to some industry experts to conclude that KPIs could provide a more … Read more

Can you be a responsible investor in commodities?

When our head of multi-asset approached me regarding the question of investing in commodities, I must admit, as a responsible investor, uttering the words ‘commodities’ and ‘ESG’ in the same sentence made me feel a bit uncomfortable. How do we create a credible and authentic approach to responsible investing in commodities? How can we balance … Read more

2024 to be characterised by clearer transition strategies in Asia

Sustainable finance in 2024 will be characterised by region-specific transition strategies, with the EU’s green taxonomy continuing to serve as a crucial model for emerging taxonomies in Asia, according to a report from Sustainable Fitch. In the report Investor Questions Answered: 2024 Sustainable Finance Market Trends, Sustainable Fitch noted several markets and regions are publishing … Read more

Responsible investment funds tripled in size in the decade to 2022

Responsible investment funds almost tripled in size between 2012 and 2022, with assets under management (AUM) increasing from $2.2trn to nearly $6trn, according to analysis released by CFA Institute. Based on the Lipper definition of responsible investment, the report – Responsible Investment Funds Build Consistent Market Presence – shows the market share of responsible investment … Read more

Sustainable bond issuance nears $1trn but avoided CO2 drops

Steady growth in the green, social, sustainability, and sustainability-linked bond (GSSSB) market could see assets surpass the $1trn mark in 2024, however levels of avoided carbon from the products were down in 2023 compared to the previous year. According to the S&P Global Ratings report Sustainability Insights | Research: Sustainable Bond Issuance To Approach $1 … Read more

Stewardship Insights: Clients are becoming more discerning in their engagement evaluations

In this series, ESG Clarity takes a deep dive into an investment firm’s stewardship activities, discovering their key focuses and processes, and what’s in their engagement toolkit. Here, Rachael Monteiro, stewardship and climate analyst at Wheb Asset Management, discusses the less well-known stewardship trends and how the group is focused on helping clients understand how issues are selected … Read more

At the SDR starting line

It has taken a lot of effort from many parties to deliver the Sustainable Disclosure Requirements (SDR) and investment labels, but the hard work is just beginning. Using an athletics analogy, SDR has set out the race track and told the athletes to choose their lanes. The anti-greenwashing rule has been added to check for … Read more