Based on research conducted on the performance of nearly 11,000 mutual funds from 2004 to 2018, Morgan Stanley Institute for Sustainable Investment finds no statistically significant difference in returns between sustainable funds and traditional funds. However, sustainable funds demonstrated 20% lower downside risk than traditional funds.
A research study conducted by the Barclays Research team seeking to assess the link between environmental, social and governance (ESG) ratings and credit portfolio performance. In addition, the report provides a general overview over sustainable investing and the top trends driving the rapid rise of its popularity.
The 2019 Ethical Fashion Report is Baptist World Aid's sixth consecutive report on labour rights and environmental management that grades 130 companies on their systems to mitigate against the risks of forced labour, child labour, and exploitation in their supply chains.
The Inevitable Policy Response (IPR) is a project to prepare investors for the investment risks associated with the most likely responses to climate change. The likely impacts of climate change and mechanisms in the Paris Agreement are likely to force substantial policy introduction in the near future with investment implications.
In a report written under the Fish Tracker Initiative, this document provides an overview of seafood exposure in equity capital markets, focusing on fishing related risks. This report is written with the purpose of aligning the world's capital markets with sustainable management of fisheries and aquaculture.
The planetary boundaries concept presents a set of nine planetary boundaries within which humanity can continue to develop and thrive for generations to come; a 'safe operating space'. Crossing these boundaries increases the risk of generating large-scale abrupt or irreversible environmental changes.
This article defines responsible investment, highlights the ways in which it is currently applied to managing assets, and outlines the key forces driving its growth. Additionally, it discusses common misconceptions about responsible investment.
Due to the foreseeable risk of climate change that companies face today, the Australian Securities and Investments Commission has conducted a surveillance project examining climate risk disclosure of companies in the ASX-300. ASIC's report sets out findings and high-level recommendations for listed companies and their directors on climate risk disclosure.
GMO's founder and long-term investment strategist, Jeremy Grantham, offers a wide-ranging analysis of interconnected environmental crises, explores solutions and makes recommendations for investors. The paper covers climate change, population growth, soil erosion and toxicity. It concludes by making the case for environmental investment strategies and fossil fuel divestment.
This report is intended to help investors understand how climate change can influence their investment performance in both the short and long term. The research uses scenarios from the Cambridge Econometrics transition-risk climate model, to consider three scenarios; 2⁰C, 3⁰C and 4⁰C temperature increases, with evolved pathways and magnitude.
Integrating environmental, social and governance (ESG) criteria into existing portfolios involves considerations beyond benchmark tracking and diversification such as budgets for governance and risk as well as portfolio impacts of different types of ESG implementation. The report explores ESG portfolio integration as well as outlining trade-offs in portfolio management.
This research focuses on providing a framework for institutional investors to improve long-term outcomes for their portfolios, their investee companies and for their stakeholders. This framework is comprised of five core action areas: investment beliefs, risk appetite statement, benchmarking process, evaluations and incentives, and investment mandates.
