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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Rating the raters: Evaluating how ESG rating agencies integrate sustainability principles
This report questions how environmental, social and corporate governance (ESG) criteria, used by ESG rating agencies in their assessment processes, have evolved over a ten year period. Additionally, they analyse whether ESG rating agencies are contributing to fostering sustainable development through the inclusion of sustainability principles in their assessment frameworks.
Private equity and value creation: A fund manager's guide to gender-smart investing
This report examines the increase in adoption of gender-smart investing within the private equity industry by general partners (GPs) and limited partners (LPs). Lessons from over 160 fund managers have been utilised in this step-by-step guide to choosing gender-smart investment strategies, and putting policies into practice within firms and portfolios.
Project SAGE series - Gender-lens investing
The 'Project SAGE' series are benchmark reports released by the Wharton Social Impact Initiative, tracks venture capital, private equity, and private debt investments with a gender lens. The project's goal was to provide a “point in time” capture of the expanding gender lens investing opportunities globally.
ESG: Hyperboles and reality
An analysis drawing on a decade of environmental, social and governance (ESG) research to discuss theories of influence, the relationship between ESG and corporate value, and the usefulness of ESG assessments and ratings. The report aims to debunk myths associated with ESG as a commonly used evaluation within businesses and society.
Sustainability-linked loan principles
The Sustainability-Linked Loan Principles (SLLP), originated in 2019 to provide a framework for this growing area of finance. This summary reviews the SLLP and its five core components. The SLLP have been developed by an experienced working party consisting of representatives from leading financial institutions.
Artificial intelligence solutions to support environmental, social, and governance integration in emerging markets
This report examines the use of artificial intelligence technologies to analyse environmental, social and governance ("ESG") data for investments in emerging markets. It gives a detailed account of an experiment conducted to determine the effectiveness of such technologies in analysing the ESG performance of emerging markets issuers.
SDG bonds and corporate finance: A roadmap to mainstream investments
This report describes how a market for mainstream investments that contribute to the Sustainable Development Goals (SDGs), could be created with enough liquidity, scale, and diversification, to attract a range of investors. It inspires and guides companies, governments, and cities, to benefit from better funding while implementing the Paris Goals.
Moving mountains: Unlocking private capital for biodiversity and ecosystems
The Biodiversity Finance Initiative (BIOFIN) seeks to expand private sector contribution and collaboration in biodiversity conservation by developing this guide to assist their understanding of biodiversity and role of private capital in sustainability. This guide aims to assist the private sector in developing finance solutions for biodiversity conservation and finance.
Corporate climate transition plans: A guide to investor expectations
A climate transition plan is a time-bound plan that outlines how a company will align its business model with its decarbonisation goals. The report focuses on expectations for a climate transition plan, including interim and long-term emissions reductions, and strategies and actions to meet these targets.
Cutting carbon: What the rush to divest fossil fuels means for emissions reduction and engagement
This report focuses on the decarbonisation of listed equity portfolios in Australia, outlining current investor initiatives and commitments to support decarbonisation and energy transition. The report discusses carbon exposure metrics, company engagement and divestment strategies, and investing in climate solutions.
A status report on financial institutions’ experiences from working with green, non green and brown financial assets and a potential risk differential
This 2020 report presents the results from a survey that assesses whether a risk differential can be detected between green, non-green and brown financial assets (loans and bonds). Based on information obtained by 49 banks, it presents a snapshot of current practices among financial institutions in their asset allocation.
Corruption risks and ESG screening of mining investments: How corruption affects environmental, social, governance (ESG) outcomes in mining and what investors need to do to guard their investments
This discussion paper identifies the manner in which corruption affects ESG outcomes of mining companies and details specific methods of evaluating/calculating a mining company ‘exposure to risk. Strategies of response that investors can take to drive sustainable and responsible business practices within mining firms are also outlined within the report.
Preventing modern slavery and human trafficking: An agenda for action across the financial services sector
This report combines research, resources and advice for financial institutions to use for information, awareness and guidance in implementing measures to address modern slavery and human trafficking concerns within their supply chain and operations.
ESG 2.0: Measuring and managing investor risks beyond the enterprise-level
This paper discusses how current institutional investing practices and asset allocation strategies conflict with ESG objectives. It encourages institutional investors to review their systematic risk-management practices and recommends the diversification of asset allocation to more regenerative investment structures and asset classes.
Winning climate strategies: Practical solutions and building blocks for asset owners from beginner to best practice
Based on interviews with 22 leading asset owners, this 2018 report explores the best-practices landscape for managing climate risks and opportunities. The report identifies barriers faced by industry leaders and presents a framework of ten building blocks for other asset owners developing and introducing climate strategies.
The little book of investing in nature
Governments and investors are increasingly aware of their responsibility in promoting biodiversity through finance. This book features a comprehensive guide to developing sustainable investment strategies and planning, investment activities to pursue and avoid, case studies of current and past efforts, and an overview of the investment options which promote biodiversity.