Sustainable investing

/Tag: Sustainable investing

Ethical investing is having its moment

In the past few years, sustainable investing has leapt from playing a bit-part in the asset management space to assuming one of the lead roles. This comes at a time when high-profile campaigners, such as Greta Thunberg and Extinction Rebellion, continue to heap pressure on governments to take climate change more seriously. A survey conducted by the

Wealthy Investors Question Paths To Sustainable Investing

If you’re wealthy and you care about the world, then sustainable or ESG (Environmental, Social and Governance) investing allows you to put money where your mouth is. Sustainable or ESG investing means that portfolios flow into sustainable funds or companies which provide a healthy return while making the world a better place. But in practise

Climate change moves to top of investors’ list of ESG issues

As institutional investors spend an increasing amount of time thinking about environmental, social and governance risks and strategies for dealing with them, the issue of climate change continues to push its way to the top of the list. According to the U.S. SIF Foundation's biennial Report on U.S. Sustainable, Responsible and Impact Investing Trends, released

Sustainable Investing at Endowments and Foundations: What It Is And What it Takes

The smallest of the institutional investors, endowments and foundations at $2 trillion in global assets under management have historically had an outsized influence on the trajectory of investment management. The investment goal of ensuring that the endowment’s rate of consumption can be sustained and relatively limited liquidity needs—typically about 5% of the average of the endowment’s value

Sustainable Investing Turns Out Not To Be As Popular As The Hype

Sustainable investing is the process of investing in sustainable companies or funds. Some people call this ESG (Environmental, Social and Governance) investing, others simply "ethical investing". Whatever the terminology, this form of investing money, usually by institutions or high net worth individuals (HNWIs: people with a net worth over $1 million), is supposedly changing the

How To Start With Sustainable Investing

The first thing to note: I’m on the fence about this whole capitalism thing. As I think about investment and savings, I’m always wondering if 70-year old Andrea will have the opportunity to reap the rewards of my decades of investment, or will the white supremacist, fossil fuel evildoers have their way and kill everything livable and beautiful

Avoiding the greenwash in sustainable investing

Ethical, SRI, ESG, best-in-class, stewardship, sustainability and impact. As its popularity has grown, the responsible investment landscape has become confusing and overcrowded with terminology that excludes rather than enables. There is also little clarity or agreement on what the various terminologies mean. We believe confusion and poorly regulated product labelling may potentially lead to mis-selling.

Sustainable Investing: How To Avoid Greenwashing?

With the rise and rise of new sustainable funds, the question of how to avoid greenwashing becomes more prevalent, and there is a lot of attention in the media for this. SRI labels are popping up and the EU is in the process of defining an ecolabel. Whereas in the past a fund would simply be

What counts as a “green” investment, anyway?

The European Union says that the region needs an additional €175-290 billion in private investment a year (pdf) to become a “climate-neutral” economy by 2050. (That’s $199-330 billion.) That may sound like a lot, but it barely puts a dent in the $5-7 trillion that the UN thinks is needed every year to achieve its Sustainable Development

How do you measure the ‘sustainability’ of an investment?

Sustainable investing has come a long way, with more than a quarter of assets under management globally now being invested with consideration of environmental, social and governance (ESG) factors. While sustainable investing was long considered a niche in equity investing, the launch of the United Nations-supported Principles for Responsible Investment (PRI) in 2006 was a

Sustainable Investing

There can be little doubt that public interest in matters of importance such as climate change, sustainability, the environment and conservation is on the rise – and sharply so. You just have to take a look at the TV or listen to the news and you’ll see it right there in front of you. Whether it’s the

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

Trump creates positive effect on socially responsible investing

Donald Trump’s surprising ascent to president of the United States has brought many unexpected effects to the financial markets. Ironically, one has been a rapid increase in interest and adoption of impact investing and other types of values-based investing. Impact investing, or values-based investing, is a type of investing that helps people and/or organizations align

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 is shaping the future of the world

For almost 50 years, Earth Day has been recognized as the largest civic-focused day of action in the world. Since April 22, 1970, Americans have sought out ways to be stewards of the environment through planting trees, riding a bike to work, or cleaning up a community garden. While these actions are admirable, other strategies

Why Hasn’t Sustainable Investing Gone Viral Yet?

With Leonardo DiCaprio raising awareness on climate change, Emma Watson advocating for gender equality and Matt Damon co-founding a company to address water scarcity, sustainability has gone mainstream. So what has prevented this movement from extending further into the financial markets? Let’s first look at what sustainability looks like in financial terms. In sustainable investing,

Socially discerning investing can bring both monetary and ethical rewards if done right

Under its various identities, sustainable, responsible, impact investing is growing rapidly as more people seek to align their personal values with their investments. According to the U.S. Forum on Sustainable Investing, investors now emphasize social and environmental issues across $12 trillion of professionally managed assets. This represents a 38% increase since 2016. Approximately one out

How to relax and learn to love sustainable investing

Sustainable investing, SRI, ESG, green funds… the jargon used to describe the concept of investing using ethical and sustainability considerations continues to grow, and with it so does the confusion around the topic. Experts themselves often struggle to provide clear definitions and terms are used interchangeably, making this area a minefield for investors. Lee Qian,

From SRI to ESG, values-aligned investing has many names. Let’s decode the lingo

Values-aligned investing is called by many different names, which are commonly misused or misunderstood by investors. Let me decode the lingo, because a shared understanding of the terminology makes this type of investing more accessible to advisors and investors alike. Please note that there are no universally agreed upon definitions among professionals, and everyone uses

Sustainable investing can be unconstrained rather than restrictive

The evolution of envi­ronmental, social and governance (ESG) measures over the past 30 years has enabled a broader opportunity to under­stand the long-term sustaina­bility of global companies. In particular, over the past five years, the harmonisation and reliability of available ESG data has improved to the extent that fund managers can now assess the alpha