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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Handbook for nature-related financial risks: key concepts and a framework for identification

Cambridge Institute for Sustainability Leadership
The Cambridge Institute for Sustainability Leadership (CISL) has created this handbook and a framework for the identification of nature-related financial risks. It builds on the Dasgupta Review of the economics of biodiversity, enabling financial institutions to begin embedding nature into mainstream financial models, risk frameworks, and portfolio strategies.
Research
12 December 2021

Managing environmental, social and governance risks in non-life insurance business

Principles for Sustainable Insurance
The paper provides guidance and recommended actions to manage environmental, social and governance (ESG) risks in the non-life insurance business and to integrate ESG issues into the insurance underwriting process. It outlines eight areas of action to manage ESG risks supporting the Principles for Sustainable Insurance.
Research
30 June 2020

SDG impact standards: Private equity funds

United Nations Development Programme (UNDP)
This paper outlines a set of standards for private equity, debt and venture capital fund managers to align their funds with the Sustainable Development Goals (SDGs). The report provides a practical, detailed, and comprehensive framework for fund managers to align their activities with the SDGs.
Research
16 November 2020

Corporate social responsibility and investment portfolio diversification

This paper argues against Andrew Rudd’s ‘inescapable conclusion’ that integration of environment, social or governance (ESG) criteria in the investment processes must worsen portfolio diversification. While, negatively impacting diversification through number of stocks and correlation it improves portfolio diversification through a reduction of the average stock’s specific risk.
Research
2 May 2010

Safeguarding human rights defenders: Practical guidance for investors

Business and Human Rights Resource Centre
Provides targeted guidance for minority shareholders with investments in public equities and limited partners in private equities on how to identify, prevent, and mitigate risks to human rights defenders throughout their investments. Human rights defenders are individuals who, individually or with others, act peacefully to promote or protect human rights.
Research
28 April 2020

Appetite for disruption: A second serving

Farm Animal Investment Risk and Return (FAIRR)
This report explores the growth of the alternative protein market, particularly in the face of supply chain disruptions, food safety concerns from COVID-19, and global emissions. This is published alongside FAIRR's Sustainable Proteins Hub, an interactive tool which allows investors to assess how companies are diversifying toward alternative, climate-positive portfolios.
Research
27 July 2020

How ESG issues become financially material to corporations and their investors

Harvard Business School
This working paper advances a framework that illustrates how environment, social and governance (‘ESG’) issues become financially material and impact on company and industry valuation. The framework comprises five stages of the pathways to materiality.
Research
4 November 2020

Point of no returns: A ranking of 75 of the world’s largest asset managers’ approaches to responsible investment

ShareAction
In this first of a series of reports released by ShareAction, 75 of the worlds largest and most influential asset management companies from across Europe, the United States, Africa and the Asia Pacific are ranked according to an analysis of their performance on stewardship, transparency and governance.
Research
31 March 2020

Investing in low-carbon transitions: Energy finance as an adaptive market

This article explores the role of financial markets in capitalising low-carbon energy systems and long-term change. Ultimately, the authors contend that current assumptions on efficient market behaviour do not fit the energy industry, and to reliably capitalise on low-carbon transitions, an adaptive market assumption should be held.
Research
29 October 2015

Winning without win-win? Recommendations on financial market strategies for biodiversity and nature

Preventable Surprises
Expert recommendations for investors regarding financial market strategies to address urgent risks in biodiversity and nature, including examples of meaningful market actions and critique of 'win-win' thinking in investment decision-making. Recommendations drawn from a private cross-sectoral dialogue hosted by Preventable Surprises in February 2021.
Research
19 July 2021

How markets price ESG: Have changes in ESG scores affected stock prices?

MSCI Inc.
This report takes a statistical look at the impact of historical ESG score shifts on stock prices valuation. It further determines financial performance implications for a broad spectrum of companies based on an ESG valuation curve.
Research
30 November 2018

Responsible investing and financial performance

Responsible Investment Association Australasia
The body of evidence continues to stack up – nationally and globally - showing that responsible investments typically achieve stronger risk-adjusted financial performance than their peers, consistently outperforming against benchmarks over short-term and long-term time frames. This fact sheet details the performance of Australian and New Zealand investment products, superannuation and impact investments.
Research
28 February 2021

Investing in a just transition in the UK: How investors can integrate social impact and place-based financing into climate strategies

Grantham Research Institute on Climate Change and the Environment
The Investing in a Just Transition initiative sets out how investors can act with social and environmental responsibility in the transition to a zero-carbon, resilient economy. It provides stakeholders with a sense of what a ‘just’ transition looks like, and suggests practical actions to achieve such a transition.
Research
28 February 2019

Incorporating environmental, social and governance (ESG) factors into fixed income investment

The World Bank
This report aims to promote strategies for including environmental, social and governance (ESG) criteria in investment decisions within fixed income. It provides an overview on sustainable investing in fixed income across five core areas building on research, practical experiences and a literature review to inform findings.
Research
30 April 2018

Looking beyond traditional gender lens investing approaches using Access Impact Framework in support of SDG 5: Gender equality

Cornerstone Capital Group
This report describes how Cornerstone Capital's Access Impact Framework enables investors to invest in opportunities to achieve gender equality and empowerment of girls, aligning with Sustainable Development Goal (SDG) 5.
Research
31 December 2019

Investing with an LGBTQI lens: Rethinking gender analysis across investing fields

Criterion Institute
Produced with the support of Dreilinden gGmbH, a German Lesbian, gay, bisexual, transgender, queer, and intersex (LGBTQI) funder and impact investor, this guide sets out a theoretical grounding demonstrating why LGBTQI lens is germane to investment decision making and providing the tools needed to conduct financial analyses.
Research
30 June 2020
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