This report proposes using firm-level emission futures contracts to better measure and incentivise real environmental impact from ESG investing. It finds that current backward-looking ESG ratings fail to predict emission reductions and may misallocate capital to higher-polluting firms. Market-based, forward-looking emission futures could improve measurement, incentives, and investment impact.

This paper, “ESG: A Panacea for Market Power?” by Philip Bond and Doron Levit (2024), examines how firms’ social (“S”) ESG policies affect market competition. It finds that moderate ESG actions such as fairer treatment of workers or customers can reduce market power and improve welfare, while overly aggressive policies harm both firms and stakeholders. The authors show that competition in ESG policies among socially minded firms can deliver efficient, welfare-maximising outcomes, linking ESG adoption to market structure, corporate governance models, and executive incentives.

This report summarises private shareholder engagements in Japan by Governance for Owners Japan between 2009 and 2019. Findings show high success rates and positive abnormal returns, with quiet activism proving more effective than public campaigns. Evidence indicates such private engagements support Japan’s governance reforms and long-term shareholder value.

Research Institute of Economy, Trade and Industry (RIETI) is a Japanese policy think tank founded in 2001. RIETI conducts theoretical and empirical economic research, bridges academe and government, and offers evidence-based trade, industry and economic policy recommendations.

London School of Economics and Political Science (LSE) is a global research university specialising in economics, politics, law, social policy and data science. Based in London, LSE offers undergraduate, graduate and executive degrees, and leads in social science research, public policy impact and global academic partnerships.

Morgan Stanley Wealth Management provides financial advice, investment strategies, and portfolio management for individuals, families, and institutions. Its services include retirement planning, sustainable investing, and access to global market insights. Morgan Stanley combines advanced digital tools with expert guidance to help clients achieve long-term financial goals and preserve wealth across generations.

This study analyses whether investor engagement on environmental, social, and governance (ESG) issues reduces firms’ downside risk. Using data from 1,443 engagements with 485 global firms (2005–2018), it finds that successful engagements, particularly on environmental and climate issues, significantly lower downside risk and related environmental incidents.

Financial Markets Authority (FMA) is New Zealand’s independent regulator overseeing financial markets. It promotes fair, efficient and transparent markets, ensures quality financial advice and protects investors. FMA develops regulation, supervises licenced entities, enforces compliance, supports innovation and aims to enhance trust in NZ’s financial sector.

This report examines the link between shareholder rights and corporate performance in the 1990s. Using a Governance Index across 1,500 firms, it finds that stronger shareholder rights were associated with higher valuations, profits, and growth, while weaker rights correlated with lower performance and abnormal underperformance.

This report examines how investor and manager motivations—driven by either financial value or personal values—shape sustainable finance and ESG practices. It highlights definitional ambiguities, performance debates, and cultural differences, calling for clearer research to distinguish pecuniary risk-return considerations from non-pecuniary preferences in ESG investing.

This paper surveys 509 equity portfolio managers on their treatment of environmental and social factors. Findings show most prioritise financial returns, with limited willingness to sacrifice performance. ES constraints from mandates, policies, and client values strongly influence decisions. Beliefs and constraints outweigh fund labels in shaping sustainable investing practices.

This report argues that ESG is both essential and ordinary: vital as a driver of long-term value but not unique compared to other intangibles such as culture or innovation. It cautions against over-emphasising ESG metrics, politicisation, and superficial classification, advocating instead a broader focus on overall sustainable value creation.

DBS Bank India is a digital-led universal bank offering personal, SME, corporate and wealth management services. Features include resident and non-resident (NRI) savings and fixed deposit accounts, remittance, loans, digital payments and credit/debit card solutions. Positions as Asia’s safest bank with a wide India branch network.

This article analyses institutional investors’ incentives to internalise negative externalities across their portfolios. It focuses on climate change, showing how large asset managers influence fossil fuel companies to reduce emissions, disclose risks, and limit lobbying, reframing shareholder primacy by prioritising portfolio-wide welfare over firm-level profit maximisation.

The Aotearoa New Zealand Climate Standards series is a benchmark series issued by the External Reporting Board. It sets out the framework for climate-related disclosures, including governance, strategy, risk management, metrics and targets, adoption provisions, and general requirements. The series provides entities with a consistent structure to report climate-related risks and opportunities.

Transition Pathway Initiative (TPI) is a global, asset-owner-led initiative assessing companies’ preparedness for the low-carbon transition. Featuring open-access ESG benchmarks, it evaluates Management Quality and Carbon Performance across high-emitting sectors, aiding investor decision-making and promoting climate-aligned corporate governance and transparency.