Impact Principles and ESG Priorities

The Intersection of Index Investing and Active Engagement

Is active engagement possible for passive investors? Index providers actually do facilitate engagement with companies in a variety of ways, such as shaping the criteria for sustainability index inclusion or the management of tilts within index constituents.

The following list of papers covers this topic and a collection of other recent ESG themes, including the surprisingly non-standard landscape of ESG reporting standards and a set of principles intended to assist pension managers in evaluating ESG risks and opportunities.

RECENT ESG CONTENT

Index Investing: Active ownership and engagement (FTSE Russell, Apr 2021)

How are index providers able to marry the practices of passive investing and engagement on sustainability issues? There are multiple answers to this question, including the process of shaping sustainability index inclusion rules.

Your Five-Minute Introduction to Sustainable Investing (Intech, 2021)

For compliance reasons, this paper is only accessible in certain geographies

This primer is a quick reference guide on the definition of sustainable investing, key ESG criteria, concerns about ESG and sustainability investing, and ESG investment methodologies.

Invest with Impact in Equities (case study) (BlackRock, 2021)

For compliance reasons, this paper is only accessible in the United States and Canada

Impact investing is gaining interest as a growing share of investors seeks tangible progress on environmental and social goals alongside financial returns. BlackRock believes public equity markets have historically been overlooked in the impact investing space, traditionally a domain for fixed income and private market financing for impact projects. Yet they see public equity markets playing a growing and indispensable role in the impact ecosystem.

Making Sense of a Chaotic ESG Reporting Landscape (DWS, 2021)

There may be a convergence in the works for sustainability reporting standards, as a number of standard-setting agencies are beginning to recognise the need for a common language.

Sustainability: The path to net zero (BlackRock, 2021)

For compliance reasons, this paper is only accessible in the United States

On April 20th, BlackRock held a special Future Forum event on sustainable investing. Innovative leaders in finance, sustainable energy, and the auto industry discussed the crucial role businesses will play in transforming the economy to net-zero carbon emissions in the years ahead. Listen to Larry Fink and Bill Gates discussing the path to a future with net-zero carbon emissions and the connections between climate risk and investment risk.

ESG Data: The devil is in the details (Franklin Templeton, 2021)

For compliance reasons, this paper is only accessible in the EMEA region

Franklin Templeton elaborates on some additional considerations that may alleviate the problem of unintentional exposures resulting from divergent ESG ratings provided by multiple ratings agencies.

Video: What does SFDR mean for the insurance industry? (Candriam, 2021)

Understanding the new Sustainable Finance Disclosure Regulation (SFDR), as well as the intersection of sustainability and risk management, and the necessity to take action towards bold goals such as net-zero initiatives and the European Green Deal may allow insurers to become key providers of sustainable finance and facilitators of an increasingly sustainable future.

Shifts & Narratives – Why investors should care about COP26? (Amundi, 2021)

For compliance reasons, this paper is NOT accessible in the United States

Amundi Asset Management highlights the significance of the Conference of the Parties (COP)26, a climate change conference to be held in Glasgow, Scotland later this year.

Human Rights: By the people, for the people (Aviva Investors, 2021)

For compliance reasons, this paper is only accessible in certain geographies

This article from Aviva Investors discusses human rights and the necessity of engaging with companies to improve social outcomes.

Impact Investing Principles for Pensions (Impact Investing Institute, 2020)

In an effort to help pension schemes understand ESG risks and opportunities, the Impact Investing Institute has developed four principles. Pension managers should set impactful objectives, appoint the right consultants and managers, use their voice to enact changes, and manage their impact through benchmarking processes.

A Leapfrog Moment for China in ESG Reporting (WEF, 2021)

This 38-page report from the World Economic Forum describes the progress on ESG reporting in China that's being driven by regulators and investors.

UPCOMING ESG CONFERENCES

Virtual Event 15-16 Jun 2021: Reuters ESG Investment North America

The industry-led agenda has been designed to deliver both strategic insights and tactical guidance on how to accelerate ESG integration plans, scale innovative sustainable and social products, access verified data, and refine engagement strategy.