An estimated 47% of commercial real estate investment across Europe is in the form of debt finance. A lesser discussed point is the important role Commercial real estate lenders can play in driving market transformation towards a sustainable built environment. This paper explores why and how this is beginning to happen and challenges the industry to do more.
The concept of a circular economy is much talked about in relation to the water sector, but it’s potential to reduce water shortages is still unclear. This report finds that the circular economy - which aims to reduce, re-use and retain water - is not able to fully eliminate water shortages.
That our planet’s resources and resilience are limited is nothing new. What is new, however, is that it is now possible to quantify both the limits and the extent of the burden with far greater accuracy than in the past. In its “Planetary Boundaries” concept, for example, the Stockholm Resilience Centre concluded that four of the nine planetary boundaries used to define global priorities associated with man-made environmental changes had already been breached.
In this note, we take a look at the merits of ESG Investing. We have divided the note into three sections discussing the big picture trends in SRI, ESG ratings and scores, and ESG integration to existing factors. Our key takeaway is that ESG can enhance your portfolio by reducing volatility, increasing Sharpe ratios and limiting drawdowns.
Over the past decade, many long-term institutional investors have incorporated Environmental, Social and Governance (ESG) considerations into their portfolios, by creating segregated ESG mandates or by incorporating ESG criteria across the entire portfolio. Adding ESG criteria into long-term portfolios raises some important questions.
Barclays and the Columbia Water Center explore how energy companies and public utilities can help alleviate water shortages and improve water quality through new technologies and better practices.
Globally, there are now $22.89 trillion of assets being professionally managed under responsible investment strategies, an increase of 25 percent since 2014. In relative terms, responsible investment now stands at 26 percent of all professionally managed assets globally. Clearly, sustainable investing constitutes a major force across global financial markets.
Policy processes across a range of countries (e.g. France, Switzerland, China, etc.), and at international level (e.g. G20) stress the importance of transparency on climate-related data and performance indicators in financial markets and public policy.
The use of tobacco is unhealthy and this has been known for a long time. Half of its users will die of the consequences. For the Netherlands this means that every year 20,000 people die due to smoking. The World Health Organization estimates that tobacco kills 6 million people worldwide per year.
Once upon a time, environmental, social and governance (ESG) factors were a niche interest among asset owners, asset managers, banks, brokers and investment consultants. No longer. Investors now routinely analyse information on ESG performance alongside other financial and strategic information in order to gain a better understanding of companies’ future prospects.
Based on insights generated from desk research, interviews, conference exercises and a decade of expert presentations to the Responsible Media Forum, this report attempts to identify the biggest corporate responsibility challenges facing media companies over the next 10 years. We believe that companies’ responses to these challenges will separate ‘good’ companies from the ‘bad’.
Less than 4% of companies (3.66%) have formulated comprehensive commitments, policies and processes, and therefore have achieved advanced performance for the integration of human rights principles and goals into their strategy, management practices and operations.
It has become a truism that the movement of data, people, and goods connects us all in unprecedented ways across geographical boundaries. This report is a direct product of this reality, born out of a determined belief that behind every global risk the world faces hides multiple opportunities to innovate and create better, more prosperous, and sustainable societies.
Over the past 30 years, the world has seen huge social improvements and technological progress. We have experienced unprecedented economic growth and lifted hundreds of millions of people out of poverty. We’re benefiting from a life-changing digital revolution that could help solve our most pressing social and environmental challenges. Yet despite these successes, our current model of development is deeply flawed.
At present, the financial system is in both turmoil and transition. The financial crisis and its aftermath caused enormous turmoil and led to an extended period of low growth and instability across the international political economy. Transition of the financial system is in part driven by this turmoil, through policy and regulatory drivers, and heightened the influence of emerging nations in shaping global finance.
Institutional and private sector forces will underpin global decarbonisation efforts despite potential changes in US climate policy. Climate policy in the US (Aaa stable) is likely to become less ambitious under President Donald Trump, which would pose a potential challenge to the Paris Agreement's objectives should other countries back away from their current commitments.
Achieving climate stability will require deep and widespread changes in the global energy sector. Fossil fuel industry projections, however, continue to show a future energy system with few changes to that of today. This is in spite of examples of disruption in the energy sector at the hands of the low-carbon transition.
When we set out to create the first State of Green Business report in 2007, our goal was simple: to step back once a year from the headlines and conferences to assess how, and how much, companies were integrating sustainability into business strategy and operations. Today, as we launch the 10th annual edition of State of Green Business, our goal remains unwavering, those questions still driving our inquiry.
The internet takes a tremendous amount of energy to manufacture and power our devices, data centers, and related infrastructural needs. The energy footprint of the IT sector is already estimated to consume approximately 7% of global electricity. With an anticipated threefold increase in global internet traffic by 2020, the internet’s energy footprint is expected to rise further.
The leading climate change specialist, South Pole Group (SPG), together with Oekom Research AG (oekom) have been commissioned by Sitra to assess the climate impact of the companies listed on Nasdaq Helsinki Main Market for the financial year 2014, reported in 2015.
One of the most significant, and perhaps most misunderstood, risks that organizations face today relates to climate change. While it is widely recognized that continued emission of greenhouse gases will cause further warming of the planet and this warming could lead to damaging economic and social consequences, the exact timing and severity of physical effects are difficult to estimate.
Green bonds could play a key role in helping to finance the investment needed to achieve the EU’s 2030 Climate and Energy objectives and the UN Sustainable Development Goals. This report presents an analysis of the development and functioning of the green bond market.
The global banking sector stands at a crossroads on climate. The Paris Agreement became effective in November 2016 and has catalyzed both the size and urgency of risks such as ‘stranded assets’, and the market for opportunities to finance the transition to a low-carbon economy. This is set to have a profound impact on the banking sector over the short and longer term.
Climate risks have a vast potential to impact financial markets. Through the process of moving towards the 1.5° to 2°C target, fossil fuel assets can lose value. One way is through more frequent natural catastrophes, which can lead to significant losses in asset value alongside insurance losses.
Starting today, yourSRI offers a broad and extensive coverage of the European equity fund- and ETF-market. Based on assets under management, with over 4'200 major investment products and links to over 20'000 different share classes available, yourSRI now covers 80% of all European equity funds as well as over 95% of all corresponding ETFs.
The Global Sustainable Competitiveness Index (GSCI) aims to evaluate the ability to sustain wealth creation. It is based on a competitiveness model that incorporates all pillars of sustained growth and wealth creation: natural capital availability; national governance; intellectual capital; resource efficiency, and social cohesion.
Disclosing the Facts 2016 is the fifth in a series of investor reports intended to promote improved operating practices among oil and gas companies engaged in horizontal drilling and hydraulic fracturing. Hydraulic fracturing is performed to release oil and gas from what is currently known as “unconventional resources”—shale and other geological formations from which oil and gas are difficult to retrieve without fracturing.
Recognizing that benchmarks can play a powerful role in encouraging companies to uphold labor standards, KnowTheChain has benchmarked 20 apparel and footwear companies on the transparency of their efforts to eradicate forced labor from their global supply chains.
This report is the first global study to analyse the impact of responsible investment-related public policy initiatives. It focusses on the perceptions of the investor community to draw conclusions about the impact of regulation on investment practice. Through quantitative analysis and interviews with investors, stock exchanges, policymakers and regulators, we found that:
Institutional investors in Switzerland are showing a growing interest in sustainable investments. This goes hand in hand with a growing need for information, both among pension funds and foundations, as well as among experts from insurance companies and other institutional investors. Swiss Sustainable Finance has therefore prepared a handbook on sustainable investments for Swiss institutional asset owners.