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PaperClimate

The future of energy

The election of Joe Biden as America’s 46th President is just one more important signal that change is imminent, for energy markets and the broader economy. With the world aligned and committed in the fight against climate change, the global movement towards a sustainable energy supply is gaining considerable momentum.
PaperSDGs

AM’s yet to embrace sustainability

Proxy voting is a powerful tool for shareholders to steer corporate agendas towards sustainability-focused decision making. Despite the increased attention to the integration of sustainability in investment solutions, asset managers generally vote against environmental and social proposals. This trend is more pronounced among large and passive players.
PaperSDGs

Big Book of Sustainable Investing

The title says it all. In The Big Book of SI, we analyze sustainable investing today and examine the trends that will shape our future. This new publication also gives investors guidelines on implementation, includes interviews with experts and client cases, and highlights the link between ESG integration and performance. All that in just 102 pages.
PaperThe S in ESG

Engaging with Investors on ESG Issues

Bond issuers—including sovereigns, who represent 50 percent of the fixed income asset class—are faced with increasing scrutiny on environmental, social, and governance (ESG) issues from investors. Forums organized by the World Bank Treasury to promote dialogue between institutional investors and sovereign bond issuers have highlighted the challenges sovereign issuers face in engaging with investors on ESG topics and in communicating ESG-related information that investors consider financially material to their portfolios. This document provides examples, best practices, and action plans that can help debt managers enhance their capacity to engage with investors incorporating ESG information in investment decisions.
PaperSDGs

Portfolio Engineering

For decades, we have engineered scalable portfolios to help institutional investors achieve their goals. In the past, these goals have typically been financial (eg. return and risk targets), but now many investors are also seeking to achieve environmental and social impacts through their portfolios. We believe the best way to achieve both financial investment goals and these impact goals is through portfolio engineering that incorporates these objectives holistically, beginning with crisply defining an investor's goals, systematically looking across a variety of asset classes to find assets that are aligned with these goals, and then combining those assets to create a portfolio that is designed to achieve a high ratio of return to risk.
PaperPolicy and regulation

New Policy Concensus

We are now at a turning point, with Democrats controlling both legislative chambers and the presidency, and an emerging concensus among Democratic policy makers and their advisors that enables fiscal spending that is both significant in size and ambitious in scope. Later this year, we expect to see the first expansionary fiscal package centered around the pursuing long-term social, environmental, and competitiveness policy goals (following the more immediate COVID recovery package). In these Observations, we explore two key shifts in Democrats' thinking underlying these policy proposals, which we expect will be sustained well beyond this fiscal package.
PaperClimate

Social Conditions Consideration

The ultimate goal of economic policy is simple and timeless - to ensure prosperity and maximise living standards. Broad macroeconomic measures such as GDP growth, the unemployment rate, and inflation had for decades been a good proxy of rising prosperity, so they have dominated economic policy making and are enshrined in most central bank mandates. But even before the COVID-19 crisis, it had become clear that traditional economic measures have increasingly diverged from social outcomes.
PaperClimate

Secular Supply and Demand

Over the past two decades, China's secular rise dominated commodity markets, as its industrialization required a massive amount of raw materials to build up the country. As we consider the future, we see many reasons to be bullish on commodities tactically, but one of the most important secular factors will likely support industrial commodity demand for years to come: the shift in global economies away from fossil fuels and toward greener energy.
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