ESG investing

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Creating sustainable capitalism

Responsible investing has long been a term in investment vocabulary. Until recently, however, it was on the periphery: a feel-good activity for ethically minded investors, but not a mainstream concern. However, this is changing. Responsible investment strategies are now becoming mainstream. The Principles for Responsible Investment membership now represent assets under management (AUM) in excess of

ESG Investing Isn’t The Only Way To Make An Impact

From driving a hybrid car to buying from ethical brands, or meticulously separating your recycling, we’re all thinking about how we can have a more positive impact on the world we live in. And it is no different with investors. Recent research shows that more than one in three family offices now engages with sustainable–or Environmental, Social

Why ESG Investing Is Here to Stay

There’s bad news and good news about sustainable and impact investing in the U.S., says Andrew Lee of UBS. The bad: Adoption is slow, with just 12% of U.S. investors owning sustainable investments. The good is that sharp growth may lie ahead. UBS expects adoption to increase by 58% within five years. Sitting down with

How to Ensure ESG Investing Isn’t Whitewash

AS PEOPLE’S INTEREST IN socially responsible investing grows, mutual fund and exchange-traded fund issuers are introducing more investment vehicles to allow people to align their dollars with their values. Among the $46.6 trillion of U.S. professionally managed assets at the end of 2017, $12 trillion – roughly 26% – was earmarked for sustainable investing, according to data from

Survey on ESG and sustainability says…

Interest in ESG or “environment, social and corporate governance” issues has increased greatly in recent years. It has been driven by a number of factors, including investors seeking to avoid reputational risk, which has been more prominent following news events such as the Hayne Royal Commission, and concerns around climate change and the impact that

There’s an Untapped Market for ESG Investing

Some research may lead plan sponsors and advisers to believe only Millennials and women are most interested in sustainable investing, but research from Morningstar finds most investors, across ages and genders, have clear preferences for environmental, social and governance (ESG) investment products. Morningstar developed a new tool, called My Sustainability Profile. The tool is designed to reveal

As demand for ESG investing grows, so too does the need for high-quality data

Climate change has already begun to affect business, with extreme weather, flooding, wildfires and drought threatening company assets and supply chains. As the environment evolves, companies that improve their energy efficiency and create new products and services will survive and companies that are slow to change will struggle. The financial services community is keenly aware

Impact Investing Must Hold Chinese Companies to Same Ethical Standards

Socially responsible investing has gained traction in recent years. Traditionally, an underperforming niche product ignored by most serious investors, it has become a key investment rationale and a differentiator among portfolio managers. There has been tangible growth of investment in companies that make a positive impact in terms of environmental, social, and governance issues—or ESG

ESG screening boosts stock market performance, research finds

Screening companies and investments using environmental social governance (ESG) criteria can positively impact investment returns and stock market performance, an analysis released recently by one of Europe's largest asset managers has found. Amundi, which manages more than €1.47tr worth of assets, looked at investment data from 2010-2017 to analyse the performance of 1,700 companies across

The surge of socially responsible investing

STANDING next to a plaque in the pure silent outback of Australia, the statement opened with ‘when the first Europeans came here…” with no mention of the indigenous people who had lived there for 45,000 years before. They say history is written by those in power, but it's also written in the present tense in

If 2018 Was the Year of ESG investing, What Will 2019 Bring?

Forty years ago the Institute for Community Economics, led by Robert Swann in Cambridge, Massachusetts, launched the first investment fund with positive criteria. Until that time investment screens used negative criteria– no alcohol or tobacco stocks, for instance. Today, sustainable investment has evolved from negative exclusion to positive inclusion. Now, 90 percent of institutional investors globally believe ESG (environmental, social and

Five common impact investing myths debunked

Louisiana Salge, an impact specialist at wealth manager EQ Investors, dispels some of the common myths associated with impact investing. The number of investors who would like to make a positive impact to society and the environment continues to grow. However, a number of misconceptions prevent some savers from taking the plunge. In no particular

ESG investing risks becoming a victim of its own success

Sustainable investing is booming. The industry has spawned its own lingo—ESG, SASB, SRI, GRI—dedicated to describing this seemingly moral turn in the finance industry, where money is invested in ways that make the world a better place. After all, it feels good to generate a return while promoting the SDGs (that’s the UN’s sustainable development

Profiting from responsible investment

In his 1962 book Capitalism and Freedom, Nobel laureate and economist Milton Friedman dismissed corporate social responsibility as a fundamentally subversive doctrine. “There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits,” he wrote. Back then, it was accepted wisdom that all

Impact investing versus ESG investing – aren’t they the same thing?

Most Asian investors still have difficulty telling the difference between so-called "impact investing" and "environmental, social and governance" (ESG) related issues. In many cases, these two terms are used interchangeably, usually incorrectly. There are various definitions of "impact investing" - put simply, it focuses on investing in companies with products and services that can generate

ESG investing needs an intelligence boost

Just cutting carbon-producing companies from a portfolio is not the smart way to achieve climate change goals and more sophisticated approaches are needed, say ESG fund managers. These should include an assessment on a company’s carbon emission practices, looking at the track record of a firm over time, and making ESG assessments an integral part

Advisors, Not Their Clients, Should Lead on ESG Investing

How popular is ESG-themed investing? It’s estimated that over $20 trillion is invested in assets because of their favored for their environmental, social and/or governance (ESG) characteristics, including over $8 trillion in the U.S. Here’s another indicator of the growing interest in ESG investment: This year’s Sustainable Investing Conference sponsored by Gitterman Wealth Management had

Hurricane Florence Hands a Megaphone to Supporters of Sustainable Investing

As Hurricane Florence made landfall and followed a path projected to move across the Carolinas on Friday, advocates of sustainable investing sought to draw renewed attention to climate change and the benefits of aligning capital to combat a warming planet. Climate change has long been a major theme for advocates of so-called ESG investing, which incorporates environmental,

How ESG investing entered the mainstream

The term “late capitalism”, first used by German economist Werner Sombart in the early-1900s, is coming back into vogue. The phrase is increasingly being used to describe the problems facing the modern global economy. These include gaping inequalities of wealth, stagnant real wages, aggressive and convoluted tax avoidance by global corporations, surveillance by tech firms, abuses of