Library | ESG issues
Climate Change
Climate change, driven by human-induced greenhouse gas (GHG) emissions, is increasing global temperatures and extreme weather events. Major GHGs like carbon dioxide and methane primarily come from burning fossil fuels, deforestation, and agriculture. Key sectors contributing to emissions include energy, industry, transport, buildings, and land use, making mitigation and adaptation essential for environmental and economic stability.
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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.
Impacts of climate litigation on firm value
This report examines the financial effects of climate litigation on firms. The study used a new dataset and found that climate litigation has a modest negative impact on firms' stock prices. The bulk of the corporate climate litigation were filed against the largest companies.
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.
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.
Welcome to the great unravelling: Navigating the polycrisis of environmental and social breakdown
This report examines the ongoing crises of environmental and social breakdown, exploring their interconnected drivers and feedbacks. It offers pragmatic and personal solutions, challenging the myth of progress, and suggesting thoughtful change as the only hope for navigating this uncertain future.
Beyond investment: The power of capacity-building support
This report explores the use of technical assistance to enhance the impact of investments in challenging sectors. With contributions from industry professionals, the report highlights motivations, uses and challenges of capacity-building support, and provides analysis to encourage discussion and shape future practice.
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.
Women in business leadership boost ESG performance: Existing body of evidence makes compelling case
Increase in women's representation in business leadership positions intensifies environmental, social, and governance (ESG) standards. 70 peer-reviewed papers published from 2008 to 2017 proportionally associate higher diversity with better firm performance. The compendium of available material evolves into a pressing case for more women in boards and other leadership roles.
User’s guide to IFC’s sustainability assessment and improvement tool for midsize growth companies
This tool aims to help small to mid-sized enterprises (SMEs) manage environmental and social risk and support long-term growth. The tool is contextualised for SMEs and provides comprehensive guidance focusing on environmental, social, and governance risk factors while presenting a pathway for manageable, systemic improvements.
Holistic portfolio construction with an impact lens: A vital approach for institutional asset owners in a changing world
This report highlights the importance for Institutional Asset Owners (IAOs) to apply an impact lens approach to their portfolio construction. By creating impact philosophies and policies, IAOs can align impact thematic(s) and drive an evolution towards providing both impact and financial returns to their beneficiaries.
Taking stock of investor implementation of the UN Guiding Principles on Business and Human Rights
This report assesses the first decade of implementation of the UN Guiding Principles for Business and Human Rights and the role of institutional investors in promoting investor responsibility to respect human rights. Enabling environments for rights-respecting investment have emerged, however, access to remedy for victims requires urgent attention, and other investment ecosystem actors must step up.
COMPASS: The methodology for comparing and assessing impact
The COMPASS is a methodology for investors to assess and compare impact data to maximise social or environmental returns. Upon collecting standardised data, this paper provides a step-by-step process to normalise impact information, using three key analytic figures, and to create benchmarks within peer groups to aid investment decision-making.
Sustainability at a turning point: Consumers are pushing companies to pivot
This research of 14,000 people from 9 countries discovered that 93% say that the COVID-19 pandemic has changed their perception of environmental sustainability. Individuals are, as a result, looking to invest in companies that prioritise environmental responsibility and expect them to communicate sustainability benchmarks and future plans clearly. In addition, more than half of consumers would work for a company that values sustainability, which is increasingly becoming a top hiring consideration.
Petrochemicals: Major credits, carbon risks, green bonds
This report reviews the petrochemical industry from a joint macro, credit specialist and climate mitigation perspective. It highlights that the industry has the highest energy demand and is the third-largest direct CO2 emitter. The first green bonds came out in 2020, although the sector’s environmental alignment remains questionable to investors.
Future-fit business benchmark: Methodology guide
The Future-Fit Business Benchmark Methodology Guide provides a free tool to help companies pursue a vision of a flourishing future. With 23 break-even Goals, 24 positive pursuits, and complementary indicators, it offers science-based guidance on how to transform business operations, procurement practices, and products in pursuit of future-fitness.