Library | ESG issues

Governance

The governance pillar in ESG (environmental, social, and governance) refers to the systems, policies, and practices that ensure an organisation is managed responsibly and ethically. It includes issues such as board structure, reporting & disclosures, shareholders & voting, and risk management. Strong governance reduces risks, enhances trust, and supports long-term business sustainability.

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New legal opinion cautions Indian company directors to take climate change seriously or risk personal liability

This paper provides guidance to company directors in India regarding their obligations to consider climate change-related risks in the discharge of their duties under Indian law. It argues that directors' duties extend beyond shareholders to the community on matters concerning the environment, and that litigation risks to companies are increasing as a result of climate change.
Research
7 September 2021

Climate endgame: Exploring catastrophic climate change scenarios

This report explores the potential for worldwide societal collapse and human extinction due to anthropogenic climate change. It argues that this topic has not been given enough consideration despite existing evidence of catastrophic outcomes. The proposed research agenda seeks to understand the likelihood and mechanisms of such events and their implications for policy.
Research
29 July 2022

Acute climate risks in the financial system: Examining the utility of climate model projections

This research examines the effectiveness of global mean temperature projections as a tool for identifying acute climate risks to the financial sector. The study highlights the limitations of current 'top-down' approaches and recommends the use of more granular 'bottom-up' methods to more accurately estimate regional-level financial risks.
Research
18 August 2022

Integrating child rights across the ASX: A UNICEF investor tool benchmarking report series

Ethical Partners
This benchmark report series, "Integrating Child Rights across the ASX," by UNICEF and Ethical Partners Funds Management, assesses and guides ASX companies on integrating children's rights into ESG practices, offering a framework and practical steps for improvement.
Research
2 September 2022

Guidance and case studies for ESG integration: Equities and fixed income

Principles for Responsible Investment (PRI)
The CFA Institute and Principles for Responsible Investment commissioned a survey on ESG integration, revealing that 56% of investors integrate governance into their equity analysis. Analysts may engage in ESG in fixed-income analysis to evaluate the risks and value of assets. ESG issues help investors arrive at estimates of fair stock value.
Research
7 September 2018

Nature risk rising: Why the crisis engulfing nature matters for business and the economy

World Economic Forum
This report is for policymakers, companies, investors and civil societies seeking to address the growing nature crisis, as it provides the economic and social impact of biodiversity on businesses. The report also calls for a change in policies and practices that drive current growth models.
Research
17 January 2020

A4S essential guide to incentivizing action along the value chain

Accounting for Sustainability (A4S)
This is a practical guide for finance teams to collaborate with their value chains and promote sustainability. The guide delves into mapping the value chain, prioritising areas of action, incentivising action, and provides useful tips, resources, and a checklist.
Research
21 September 2022

Navigating a new era of business and human rights

Business and Human Rights Resource Centre
This book highlights the intersection of corporate practices and human rights. It explores evolving challenges, regulatory landscapes, and the importance of collaborative, ethical business conduct. Key themes include transparency, state roles, and the human rights-based approach, offering insights for stakeholders to navigate this complex field.
Research
7 August 2019

Reinventing capitalism: A transformation agenda

World Business Council for Sustainable Development
This issue brief by World Business Council for Sustainable Development (WBCSD) explores the need for a reinvented capitalism that prioritises true value over value extraction. It examines the unsustainable outcomes of contemporary capitalism and presents a transformation agenda to help steer businesses towards a sustainable global economy.
Research
10 November 2020

Tobacco free portfolios: The toolkit 12th edition

Tobacco Free Portfolios
This toolkit offers a framework for finance professionals to invest in tobacco-free portfolios. The toolkit covers various areas including the Tobacco-Free Finance Pledge, prospective investment risks and case studies, with a call to action for the industry to follow.
Research
28 January 2020

Right direction, wrong equipment: Why transition risks do not fit into regulatory stress tests

Sustainable Finance Observatory
The authors of this report explore the challenges of integrating climate-related risks into regulatory stress tests. They demonstrate that supervisory risk assessment frameworks struggle to capture long-term systemic risks, and offer recommendations for developing a 'long-term risk;' supervision 'infrastructure.'
Research
21 September 2017

Is regulation enough? A review of UK master trusts' ESG policies

ShareAction
This report explores the approach to climate change risk by UK's largest master trusts. It examines 16 master trusts' ESG policies and practices, focusing on the work of the trustees and their engagement with investee companies on ESG practices and risk management. The report draws attention to some positive developments, showing that some schemes have incorporated ESG and/or climate change factors into their asset allocation strategy.
Research
19 December 2019

Climate scenario analysis: Cement's financial performance under 2°c and 2.7°c

The report examines the financial implications of climate transition scenarios on the cement sector's future. It provides useful insights to company analysis and financial risk analysis for the cement sector, providing readers with a comprehensive understanding of the impact of climate transition scenarios.
Research
26 July 2018

We know our lives are in danger: Environment of fear in South Africa's mining-affected communities

Centre for Environmental Rights
This report highlights how mining has affected South African communities and examines the legal framework and community engagement procedures relating to mining activity. It discusses the impacts of mining on communities in terms of health, environment, livelihoods and social cohesion, as well as the high levels of violence in these communities.
Research
11 April 2019

A pilot study on systems thinking in asset management

Stockholm Environment Institute
This pilot study analyses systems thinking in sustainable finance from a multidimensional perspective, highlighting six key dimensions for investment and asset management to consider. The study reveals the challenges of applying such approaches in finance while emphasising the importance of understanding sustainability impacts on all levels.
Research
21 April 2023

A little less conversation, a little more action: 10 lessons learned from 10 years of helping investors to tackle climate

ISS
This report presents 10 lessons for investors on tackling climate change. Through this summary, the authors offer insights on methodologies for climate scenario analysis, the intersection of reporting and acting, an effective climate voting process, the role of regulators in transparent carbon neutral investments, among other topics.
Research
20 August 2021
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