ESG investing

/Tag: ESG investing

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

When will “socially responsible investing” become just “investing”?

This year marks the 10th anniversary of the global financial crisis, bringing with it an inescapable reminder of the power of the finance industry. While many tangible things have changed over the past decade—from stricter regulation to big banks’ leadership ranks—more subtle, yet no less consequential, shifts are also underway in the financial world. It

How ESG Investing Increases Risk-Adjusted Returns

You may not get to have your cake and eat it, too, but you can have your returns and invest responsibly thanks to ESG investing. Many investors view ESG as just another means of socially responsible investing, but ESG investing can – and many experts say should – serve another role in your portfolio: that of risk reduction.

ESG Investing: The New Frontier for Investors

Sometimes referred to as “sustainable investing” or “ethical investing”, ESG (environmental, social and corporate governance) investing is an umbrella term for those investments that, in addition to aiming for positive returns, seek to have a positive and sustainable impact on the environment, society and business performance. ESG investors, therefore, will usually evaluate a company by

The Family Office World Grapples With How to Confront Big Corporations

John D. Rockefeller founded Standard Oil Co. and as a result was the richest person on the planet when he died in 1937. Yet some of his 200-plus living descendants have embarked on a mission to challenge Standard Oil offspring Exxon Mobil Corp. on climate change.  So it should come as little surprise that the investment company

Responsible investing grows even as opinions remain divided, RBC Global Asset Management Survey Finds

Two-thirds of institutional investors use environmental, social and governance (ESG) considerations as part of their investment approach, and 25% expect to increase their allocation to managers with ESG-based investment strategies within one year, according to a global survey by RBC Global Asset Management (RBC GAM). While these results suggest that responsible investing has moved into