Issued in November 2008, the World Bank’s first green bond created the blueprint for sustainable investing in the capital markets. Today, the green bond model is being applied to bonds that are raising financing for all 17 Sustainable Development Goals.
Climate finance is a central issue in how the global community proposes to follow through with implementation of the Paris Agreement. A new study, shows that while investment in climate action has been steadily increasing, it falls short in key areas.
The Centre for Sustainability and Excellence releases its third annual report on Sustainability (ESG) Reporting Trends: North America 2018. This research provides a useful and convenient representation of the current state of Sustainability Reporting.
The United Kingdom is the frontrunner in Europe for sustainable and responsible investment (‘SRI’) according to data published in November 2018 by Eurosif, Europe’s sustainable and responsible investment membership organization.
SRI Investing in the US continues to expand at a healthy pace. The total US-domiciled assets under management using SRI strategies grew from $8.7 trillion at the start of 2016 to $12.0 trillion at the start of 2018, an increase of 38 percent. This represents 26 percent—or 1 in 4 dollars—of the $46.6 trillion in total US assets under professional management. Since 1995, when the US SIF Foundation first measured the size of the US sustainable and responsible investment universe at $639 billion, these assets have increased more than 18-fold, a compound annual growth rate of 13.6 percent.
Community Investing is a vital form of SRI Investing that the US SIF Foundation has tracked for 20 years. The community investing sector has experienced rapid growth over the last decade, nearly doubling in assets between 2014 and 2016, and growing more than 50 percent from 2016 to 2018. In the US, community investing institutions direct capital to communities and individuals underserved by conventional financial services. They provide capital for small businesses, affordable housing units, charter schools, grocery stores as well as responsible lending products and related programs.
Amidst all of the important improvements in Environmental, Social and Governance (ESG) data, all of the thoughtful research reports, and all innovative new investment options, another, deeper trend has taken root. As we turn towards 2019, we see increasing evidence that Systems Thinking is becoming more prevalent and influential throughout corporations and the sustainable investment community. This subtle, under-the-surface development is one of the most vital requirements for effective long-term investing. Systems Thinking aims to understand the whole, in addition to the individual parts.
