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We summarise credible research and reports on sustainable finance and ESG issues. Our summaries, along with our AI ChatBot saves members time reading large reports, to focus on knowledge building and action.
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Decarbonising cement: The role of institutional investors
This report outlines why cement production is carbon-intensive and provides pathways for decarbonisation. A 60% reduction in emissions by 2050 is required to limit temperature increases to 1.75°C. Institutional investors need to engage with cement companies and cut off funding for carbon-intensive infrastructure to mitigate climate-related risks.
Who cares wins: Connecting financial markets to a changing world
The report outlines recommendations by leading financial institutions for integrating environmental, social, and governance factors in financial analysis and investment decisions. Produced under the auspices of the United Nations Global Compact, this report reflects the commitment to corporate responsibility and sustainable development by twenty endorsing institutions.
Connecting the dots: Energy transition scenarios and credit quality
This report explores the implications of climate transition scenarios for the credit quality of nine companies in power utilities, cement, and steel. It shows the potential credit consequences of failing to mitigate risks and grasp opportunities associated with the low-carbon transition. The study highlights the value of granular scenario analysis for investors.
Primer on climate change: Directors’ duties and disclosure obligations
This report provides an overview of contemporary evidence that climate change presents foreseeable, and in many cases material, financial and systemic risks that affect corporations and their investors. It discusses general climate obligations, directors' duties, disclosure obligations, and advice to directors, emphasising the importance of embedding climate change in financial risk management, disclosure, and supervisory practices.
Converging on climate lobbying: Aligning corporate practice with investor expectations
This report details the importance of climate lobbying for the long-term interests of institutional investors. It covers recommendations for future engagement and case studies, and is primarily aimed at investment professionals. The report does not have any specific focus on discussing a list of companies, rather, it is an investor initiative that advocates for climate lobbying practices and investor expectations for companies globally.
Diversity washing
This paper investigates the phenomenon of "diversity washing," whereby companies appear to prioritise diversity and inclusion (DEI) in their public discourse to a greater degree than their internal practices suggest. The authors use an empirical approach to evaluate the prevalence and effectiveness of this phenomenon.
Climate emergency – tipping the odds in our favour: A climate-change policy briefing for COP27
This paper is a policy briefing for COP27 which presents potential solutions for stabilizing the climate, assessing the level of risk inherent in the current approach to climate change, and explores how society can accelerate climate action. It uses a risk-management approach to assess how climate change is being managed.
Geopolitics of the energy transition: Critical materials
This paper explores strategic approaches for ensuring a sustainable energy transition by investigating the geopolitical aspects of critical materials including their supply chain, responsible efficiency, emergence of new technologies, their impact on labour rights, as well as suggesting ways to mitigate their risks and boost cooperation between countries.
The investor’s guide to hazardous chemicals: An introduction to harmful substances, ChemScore and the Investor Initiative on Hazardous Chemicals (IIHC)
The investor guide to hazardous chemicals explains the dangers of chemical pollution, how to identify companies with high chemical footprints, and the tactics that investors can use to engage with these firms. The report also presents the 2022 ChemScore rankings, and a list of questions to ask chemical companies.
New pathways to achieve social and environmental goals: How leading corporations use impact investing to align capital and purpose
This report examines how leading corporations use impact investing to pursue environmental and social goals. It contains case studies of companies such as PayPal and Schneider Electric, showcasing their impact investing practices and strategies.
The private wealth industry and tax: Politically biased, ethically compromising and failing clients
This report identifies that the private wealth sector is politically biased, ethically compromising, and failing clients with tax positive views. The report calls for significant changes to industry practice to better serve clients and ensure a more equitable society.
Fossil fuel divestment strategies: Financial and carbon-related consequences
This study examines financial and carbon-related impacts of fossil fuel divestment strategies. Empirical analysis of a Canadian stock index suggests ethical divestment reduces carbon exposure and performs as well or better than the benchmark.
A guide to SDG interactions: From science to implementation
This report examines the nature of interlinkages between Sustainable Development Goals (SDGs), underpinned by a framework for understanding sustainable development goal interactions. Policymakers, practitioners and scientists working on implementing SDGs are the intended audience for this report.
Understanding and aligning with beneficiaries’ sustainability preferences
This report explores how engaging with beneficiaries can improve investments' environmental, social, and governance (ESG) performance. It outlines a four-step process for investment professionals to understand and align with beneficiaries' sustainability preferences, ultimately strengthening a fund's performance and maintaining social license.
What is tax fairness and what does it mean for investors?
This report is a discussion paper on tax fairness and its impact on institutional investors. Six principles guide the initiatives to bring transparency and systematic approach in dealing with tax issues in the investment industry. It also outlines past legal and regulatory efforts and recommendations for future stakeholder engagement to improve tax arrangements.
On purpose: Towards a unified theory of responsible investment
This paper presents a framework for evaluating responsible investment (RI) approaches that re-align investment practice with purpose. It unifies the field, generates a coherent framework for designing quality RI offerings, and supports meaningful comparison of diverse RI offerings. It is essential reading for investors interested in RI.