Library | Sustainable Finance Practices
ESG strategy, analysis and integration
Tools and methodologies for embedding ESG considerations into investment strategy, analysis and decision-making, credit analysis, and insurance underwriting. These include applying different approaches, including positive and negative screening, ESG analysis and asset allocation.
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Building capacity for the Paris Agreement's Enhanced Transparency Framework: What can we learn from countries' experiences and UNFCCC processes?
This report outlines the necessity of capacity building to enhance transparency in the Paris Agreement. The report uses 13 case studies to highlight challenges in implementing transparency requirements and six lessons for effective capacity building. International initiatives and support programs are discussed to inform the construction of transparent and sustainable climate governance.
Energetics
Explore Energetics, a leading energy and carbon management consultancy with a wealth of experience. They provide strategic solutions for sustainable energy practices from carbon accounting to renewable energy advice.
The implications of AI across sectors and against 6 key ESG considerations
AI offers great positive impacts and risks. This report helps to understand the risks associated with developing and using AI tech. Scoping exercise identifies opportunities and threats across sectors. Six core ESG considerations including trust and security, data privacy, and sentience are evaluated for potential impact.
Safety by design: Investment checklist
This investment checklist is a concise guidance document, aimed at investors and venture capitalists considering whether to invest in tech companies. The checklist presents a 12-point criteria touching on design and provision of services, community guidance, safety reviews, user tools, and proactive steps to inform users about safety policies.
Rights-respecting investment in technology companies
This briefing highlights the potential human rights impact of technological advancements and the responsibility of institutional investors to mitigate these risks. Based on the UN Guiding Principles, investors should implement human rights policies, assess risks and divest from companies with inadequate human rights practices.
Investors' expectations on responsible artificial intelligence and data governance
This report outlines responsible AI and data governance principles and engagement framework for investors across multiple sectors. The six core principles aim to enhance machine learning, auditability, explainability, and transparency, while taking into account legal, regulatory, ethical, and reputational risks.
IDEEA Group
IDEEA Group is a consultancy specialising in natural capital accounting, a method to measure the value of nature's benefits. They help businesses understand the environmental impact of their activities through data and scientific methods.
IBM Institute for Business Value
Explore valuable insights at the IBM Institute for Business Value. Uncover industry-leading research, reports, and perspectives on key business challenges. Navigate through thought-provoking analyses on topics like digital transformation, innovation, and emerging technologies. Elevate your business strategy with data-driven expertise from IBM, a global leader in technology and consulting.
ENCORE
ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) is a free, online tool that helps organisations explore their exposure to nature-related risk and take the first steps to understand their dependencies and impacts on nature.
Can ESG add alpha? An analysis of ESG tilt and momentum strategies
This research explores the impact of environmental, social, and governance (ESG) factors on investment returns, focusing on ESG Tilt and ESG Momentum strategies. The study reveals that both strategies outperformed the global benchmark, providing empirical evidence that ESG factors can enhance portfolio performance.
Mobilising climate investment in emerging markets: Opportunities for Australian pension and superannuation funds
This report delves into the potential of pension funds in driving climate solutions in developing economies. Highlighting barriers like geopolitical risks and policy uncertainties, the report underscores collaboration, ESG standards, and internal expertise as pivotal for sustainable investments in these regions.
Applying economics – not gut feel – to ESG
This report advocates for the application of mainstream economics to evaluate environmental, social, and governance (ESG) issues for long-term financial and social returns. It identifies how conventional thinking around ten key ESG issues can be overturned when applying mainstream economics principles to provide better ESG insights.
Investors can assess nature now: A guide to assessing water and deforestation issues in investment portfolios
First Sentier Investors presents a five-step approach for sector and company-level assessments of nature and biodiversity with a focus on freshwater and forests.
Aggregate confusion: the divergence of ESG ratings
The research investigates the disagreement in Environmental, Social and Governance (ESG) ratings between rating providers. Three factors are identified: measurement divergence, scope divergence and weight divergence. The paper argues for a standardisation of ESG indicators and measurement procedures to reduce the discrepancy in ESG ratings.
Integrating nature: The case for action on nature-related financial risks
The Cambridge Institute for Sustainability Leadership (CISL) has written this paper to equip senior management within financial institutions to integrate nature-related risks into financial decisions. The paper details why action needs to be taken and the steps to accelerate the integration of nature into finance.
ESG and financial performance: Aggregated evidence from more than 2000 empirical studies
This study examines the positive relationship between ESG (environmental, social, and governance factors) and corporate financial performance, through examining over 2000 empirical studies; a strong business case is also seen across regions and asset classes. Findings show an expected alpha when embracing ESG in investment strategies.