MSCI explores pressing topics for investors heading into 2019. The five key ESG trends anticipated to dominate the conversation are: climate change, waste management, leadership and talent, ESG regulation, and the ESG signal revolution.
Sustainable and impact investing in the US continues to grow and to make a difference. Investors now consider environmental, social and governance (ESG) factors across $12 trillion of professionally managed assets, a 38 percent increase since 2016. Financial firms and institutional investors are addressing a diverse set of ESG concerns across a broader span of assets than ever. Many of these money managers and institutions, concerned about racial and gender discrimination, gun violence and environmental protection, are using portfolio selection and shareowner engagement to address these important issues.
Mark Tercek spent 24 years working as an investment banker and the last 10 years as the CEO of The Nature Conservancy. How to scale up investments in nature – is what he thinks about and what he wants you to start thinking about more.
“Gender and climate are inextricably linked,” said environmentalist and author Katharine Wilkinson at TEDWomen, a recent gathering of women thought leaders and activists in Calif. Women, she says, are disproportionately affected by climate change.
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.
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.
