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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A tool for developing credible transition plans: Public edition for asset owner pilot-testing

United Nations Environment Programme
This report provides asset owners with guidance for preparing and evaluating transition plans. It highlights key elements for credibility, outlines relevant frameworks, and offers recommendations for both preparers and users of transition plans, enhancing transparency and accountability in achieving net-zero goals.
Research
23 December 2023

Investment model validation: A guide for practitioners

CFA Institute
This guide offers a practical framework for assessing the robustness of investment models used in finance. This report covers methodologies such as backtesting, cross-validation, and scenario analysis to mitigate model risk, providing investment professionals with tools to enhance decision-making processes and model reliability. The guide stresses the importance of aligning model outcomes with economic theory and offers insights into performance benchmarking.
Research
27 June 2024

Insurance-associated emissions: Top tips for finance teams of insurers and reinsurers

Accounting for Sustainability (A4S)
This report provides finance teams in the insurance industry with practical guidance on calculating insurance-associated emissions. It outlines the PCAF Standard, emphasises the importance of establishing an emissions baseline, and offers actionable steps for leveraging data, improving processes, and supporting decarbonisation.
Research
9 April 2024

Building sustainable business models in private banks: A pathway to a better future

World Wide Fund for Nature (World Wildlife Fund – WWF)
This report highlights the SPRING framework, aimed at integrating sustainability within private banking. It presents findings from a pilot study, emphasising the need for private banks to incorporate ESG in operations, improve risk management, foster governance, and engage clients on sustainability preferences. The report also provides actionable recommendations for private banks to drive positive environmental and social impact.
Research
31 May 2023

Turning strategy into reality: ESG implementation challenges in Australia’s finance sector

Action Exchange
The report highlights the challenges financial institutions face in embedding Environmental, Social, and Governance (ESG) strategies. It covers topics such as governance, skills gaps, data issues, and the critical role of the front office in driving sustainability goals, offering practical steps for overcoming these hurdles.
Research
20 October 2023

Combining AI and domain expertise to assess corporate climate transition disclosures

This paper introduces an assessment framework for corporate disclosures on climate transition strategies. It identifies 64 indicators from 28 frameworks, develops a natural language processing (NLP) tool to automate disclosure assessment, and analyses disclosures of carbon-intensive companies. The findings reveal that companies often prioritise reporting targets over concrete implementation actions.
Research
14 May 2024

A practical guide for business: Air pollutant emission assessment

Stockholm Environment Institute
This guide provides businesses with a framework to quantify air pollutant emissions along their value chains. It offers methodologies for assessing emissions from key sources such as electricity, fuel combustion, and transportation, helping businesses reduce pollutants and support better health outcomes and environmental sustainability.
Research
13 December 2023

Practical guide to minerals due diligence implementation

Responsible Minerals Initiative (RMI)
This guide provides practical steps for companies to implement due diligence in their mineral supply chains, aligning with OECD, SEC, and EU regulations. It focuses on establishing strong management systems, identifying and mitigating supply chain risks, and ensuring compliance with responsible sourcing standards to prevent human rights abuses and support ethical mineral sourcing practices.
Research
3 February 2022

Equity lens toolkit for venture capital investors: Mitigating gender bias within investment processes

Value For Women
The toolkit provides practical tools to help VCs and investors identify and mitigate gender bias in their investment processes. It equips them with strategies to uncover overlooked opportunities and promote inclusive practices, particularly for women founders in the Asia-Pacific region, ultimately fostering a more diverse and equitable investment landscape.
Research
4 July 2024

Developing a biodiversity policy: A technical guide for asset owners and investment managers

Principles for Responsible Investment (PRI)
This guide provides asset owners and investment managers with a structured approach to developing a biodiversity policy. It outlines the importance of addressing biodiversity loss, offers a five-step process for integrating biodiversity considerations into investment practices, and details key components of a comprehensive biodiversity policy, including governance, target setting, and risk management.
Research
9 April 2024

RAPID institutional investor guidance framework for the elimination of child labour in supply chains

United Nations Global Compact
This framework provides investors with actionable strategies to integrate child labour considerations into their investment processes. It outlines key human rights metrics, emphasising the importance of rigorous data and engagement to drive effective corporate accountability in eliminating child labour.
Research
27 April 2024

Conflict sensitivity in projects: Practical measures for private sector clients

The World Bank
This report provides practical measures for private sector clients to incorporate conflict sensitivity in their projects. It emphasises the importance of understanding and managing conflict risks to avoid exacerbating violence, promote social cohesion, and enhance investment resilience in fragile and conflict-affected environments.
Research
1 March 2023

Asia in focus: ESG investing and the business and human rights agenda

United Nations Development Programme (UNDP)
The report examines the state of ESG investment in Asia, highlighting the challenges and opportunities faced by investors, regulators, and companies. It explores the rise of ESG funds, active ownership, sustainable bonds, and the evolving regulatory landscape.
Research
11 June 2024

Global sector strategies: Investor actions to align the aviation sector with the IEA's 1.5°C decarbonisation pathway

Principles for Responsible Investment (PRI)
The report outlines investor actions needed to align the aviation sector with the IEA's 1.5°C decarbonisation pathway, emphasising sustainable aviation fuels, significant investment in new technologies, demand management, and avoiding carbon offsets. It aims to accelerate the sector's transition to net-zero emissions, ensuring climate goals are met by 2050.
Research
9 March 2022

Towards orderly green transition: Investment requirements and managing risks to capital flows

Organisation for Economic Co-operation and Development (OECD)
The report examines the investment needs for a green transition in emerging markets (EMs), the current state of green investment flows, and the risks to capital flows. The report underscores the need for increased private investment and addresses the barriers and structural issues limiting green finance in EMs.
Research
14 July 2023

State of nature-related disclosures: Assessing TNFD alignment of nature-related disclosures by firms in high-risk sectors

First Sentier Investors
The report evaluates the alignment of firms' nature-related disclosures with the TNFD framework. It covers eight priority sectors, highlighting disclosure gaps and providing recommendations for improvement to ensure comprehensive, high-quality nature-related reporting.
Research
9 July 2024
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