Climate Change: A Long-Term Risk For All Investors

The Costs of Ignoring ESG Investing

Climate change is the single most important risk of our generation - at least many investors seem to believe this. The data agrees with them. Then why is ESG investing being pulled into the political arena, rather than being used as an investment framework to tackle climate change (and other risks in the "S" and "G" in ESG)? Below are some of the most recent papers on this subject, designed to help allocators understand the importance of green capital in today's economy.

A Guide To Investing In Natural Capital (Nuveen)

Different forms of capital support economic activity. Natural capital is key for fuelling growth and ensuring long-term sustainability.

Sustainable Investing: Alpha & Outcomes (UBS AM)

Investing is, first and foremost, a belief. In some ways, sustainable – ESG – investing is no different than being a belief.

Protecting Biodiversity Through Corporate Action (Impax Asset Management)

Biodiversity matters. Not only does it matter for its own sake, but also because of the immense value of ecosystem services to human wellbeing.

Corporate Sustainability Due Diligence Directive: Analysis (State Street)

A deep dive into the impact of Corporate Sustainability Due Diligence Directive (CS3D) on the world of asset management.

Navigating Plastics and Metals Circularity in 2023 (S&P Global Platts)

Scrap markets are a key part of the energy transition, with carbon emissions from scrap-based steel production sharply lower than from virgin raw materials.

Quantifying Financial Risks Associated with the Net Zero Transition (WTW)

The risks that climate change poses to the financial system are subject to increasing scrutiny from market participants, financial authorities and civil society.

An Analysis of the Green Bond Market Performance (Global Risk Institute)

Green bonds have an important role to play in supporting a global transition to a low carbon economy, and investors are starting to acknowledge this.

Improving European Climate Risk Stress Testing (Oliver Wyman)

The European Banking Authority will soon take on several mandates under the Capital Requirements Directive 6 (CRD6) to assess material ESG risks and common methodologies.

Influence of Proxy Advisors and ESG Rating Agencies on Global Companies (FRC)

ESG rating agencies acknowledge that the length of time taken to update ratings could be frustrating for companies and investors. However, there is progress on this front.

Can Society Turn Down Damaging Levels of Light Pollution? (FT)

Artificial light is proving to be an ever-growing threat to biodiversity. Capital allocation and new technology can solve this issue and preserve biodiversity.