IPCC assessment report

The IPCC is now in its sixth assessment cycle, in which the IPCC is producing the Sixth Assessment Report (AR6) with contributions by its three Working Groups and a Synthesis Report, three Special Reports, and a refinement to its latest Methodology Report.

Building a sustainable portfolio

The property industry is the largest emitter of CO2. By making buildings more sustainable, we can help the environment and boost returns.

Robeco Climate Hub

Find out how asset owners are targeting positive climate outcomes with their investments.

Robeco Global Climate Survey

Robeco commissioned a survey that asked probing questions to more than 300 institutional, wholesale and insurance investors accounting for about 20% of global assets. The results have been both encouraging and an indication that much still needs to be done.

The Big Book of Climate Investing

To better inform investors and the wider public about the investing implications of global warming, Robeco launched a climate hub to cover all its major aspects. In five sections, we focused on the Urgency of facing climate change, the Challenges that it presents, the Responsibility we have to tackle it, the Opportunities it also brings, and the Solutions that are available.

How does ABP deal with the energy transition

In this position paper we give ABP’s view on the energy transition and show how this is reflected in our investments. This paper focuses on our investments in primary energy producers* and energy suppliers in the utilities sector.

ABP’s Sustainable and Responsible Investment Policy (2020-2025)

ABP wants to offer all our participants a good pension now and in the future – one they can enjoy in a livable world. That is why we carefully consider the return, risk, and cost, as well as the social responsibility and sustainability performance of each investment decision we make.

Measuring Portfolio Alignment

This report is an excellent critical assessment of the strengths and trade-offs of the options available to measure the alignment of investments with climate goals and is an important contribution to the debate.

World Energy Investment 2021

This year’s edition of the World Energy Investment report presents the latest data and analysis of how energy investment flows are recovering from the shock of the Covid-19 pandemic, including full-year estimates of the outlook for 2021.

The ESG investing industry is dangerous

An opinion piece from Robert Armstrong, Financial Times: “We’ve got big global problems. I am a capitalist red in tooth and claw, but I just can’t see how financial markets have a meaningful part to play in solving these problems until citizens and governments act first and decisively.”

Team ESG fights back

An opinion piece from Robert Armstrong, Financial Times: “My piece about Tariq Fancy and the case against ESG generated a great deal of mail. At least half of it was positive, mostly in the “thanks for pointing out that the emperor has no clothes” vein. A small minority made ad hominem attacks, which is even more encouraging for a journalist than praise.”

Investing for Net Zero

Economies, businesses and investors around the globe are joining the UN Race to Zero and committing to net zero 2050 targets. It is estimated that reaching net zero 2050 will require around $1-2 trillion of investment every year.

Why Electric Cars Can’t Come Fast Enough

The transition from the ICE age to the EV age over the coming decade will represent rapid change in most countries. But from an environmental perspective, the EV age isn’t coming fast enough.

SI Outlook 2021

What does Robeco expect in the world of sustainable investing in 2021? We remain focused on the two main elements of SI: integrating ESG into the investment process and active ownership. In our latest webinar, Masja Zandbergen outlines her views on the market outlook for SI and sustainable strategies.

Electric Revolution

With a federal government turn over to the Democratic party this year, hopes are high for a focused, comprehensive federal approach to tackling climate change, rather than the patchwork state approach of the past administration. President Biden has consistently highlighted the climate crisis as urgent, and the team of advisors he has assembled on the issue demonstrates his commitment.

Sustainability yearbook 2021

S&P Global has published its annual yearbook showcasing the sustainability performance of the world’s largest companies. Over 7,000 companies were assessed as part of the 2020 S&P Global Corporate Sustainability Assessment (CSA), which resulted in 70 gold class, 74 silver class, and 98 bronze class medals being awarded to companies in the Sustainability Yearbook 2021.

Regulation will enhance sustainability

Integrating sustainability into investments will become much higher profile under new EU regulations that take effect this year. Coming into force over the course of 2021, the EU’s Sustainable Finance Action Plan represents one of the most impactful pieces of regulation to hit the investment management industry since MiFID II beefed up reporting and transparency in 2018.  A core tenet of the plan is the Sustainable Finance Disclosure Regulation (SFDR), which will classify investment funds according to their sustainability credentials for the first time.

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.

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.

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.

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.

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.

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.

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.

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.

Diversity Impact Score

Throughout its history, the U.S. domestic Asset Management Industry, projected by PwC to grow to $71.2 trillion in assets under management by 20251, has exhibited an empirical lack of diversity with respect to gender and ethnicity within its ranks. Numerous studies have shown that Women and People of Color (“POC”) are underrepresented in the Industry, including a 2019 study commissioned by the Knight Foundation finding that Asset Management firms owned substantially or majority-owned by Women or POC managed only 1.3% of the Industry’s total assets under management.

Sustainability in the time of Covid-19

2020 underlined just how closely connected the world is. The pandemic broke out in a market in China but quickly spread to the rest of the world. The health crisis soon escalated into a serious economic crisis – a crisis of which we still do not know the full consequences of. Being able to act quickly and safely in a changing world is more important than ever. Many of PensionDanmark’s members and companies have endured periods of lockdown, and jobs have been lost as a consequence. The hotel and restaurant industry, the transport industry and the many employees at Denmark’s airports have been particularly hard hit. Many of the companies that were not shut down had to implement restrictions and other measures to protect themselves against COVID-19.

Asset Owner Technical Guide: Selection

The incorporation of ESG factors within the investment process has evolved from a nice-to-have to a necessity. Client demand has grown strongly, with 68% of the PRI’s asset owner signatory base addressing ESG considerations in their requests for proposals (RFPs). This means that many asset owners expect investment managers to include financially material ESG factors within their funds and investment strategies. In addition, policy makers around the world are introducing regulatory requirements for both investment managers and asset owners to disclose and report on responsible investment practices.

Asset Owner Technical Guide: Monitoring

A growing number of asset owners now expect their investment managers to incorporate ESG factors into their investment processes. This means that ESG needs to be at the core of the relationship between the asset owner and the investment manager – and that ESG considerations need to be addressed at every stage of that relationship, from setting the initial investment strategy, to drafting requests for proposals, to selection, appointment and monitoring.

Asset Owner Technical Guide: Appointment

Asset owners increasingly include ESG considerations in their investment management agreements (IMAs) and other legal documentation. More than two-thirds (69%) of PRI asset owner signatories typically implement ESG requirements in contracts such as IMAs and limited partner agreements (LPAs).1 To ensure that investment managers abide by their clients’ ESG requirements, certain legal aspects are becoming standard features of the asset owner-investment manager relationship.

A Greener Fiscal Future

With fiscal policy now the dominant lever supporting growth in most economies, it has become even more important to understand how the various fiscal policies will flow through to GDP, inflation, and different markets. We have been working to get our understanding of fiscal policy to the same level as our understanding of monetary policy. This is a difficult task, as fiscal comes in so many forms, each having different implications at the macro and micro levels. Some policies can be clearly counter-cyclical (the best of these are typically direct checks and shovel-ready infrastructure), while others aim to address more structural problems (like low productivity or environmental issues) but are less effective cyclically, as they are typically longer-term.

Planetary Boundaries:

Businesses have a huge role to play in containing global environmental risks. And because they have great leverage on companies, so too do investors.  The idea of “ethical” or “green” investing has gained ground in recent years, but it is hampered by a lack of quantitative definitions.

Fiscal recovery packages and climate

As we move from the rescue to the recovery phase of the COVID-19 response, policy-makers have an opportunity to invest in productive assets for the long-term.

The alpha in impact

How operating with an impact objective can add financial value for investors. 

Investment strategy on climate change

This first report by the California Public Employees’ Retirement System (CalPERS) responds to the recommendations of the Taskforce on Climate-Related Financial Disclosure (TCFD).

From linear to circular

A circular economy is an industrial system that is restorative or regenerative by intention and design. It replaces the end-of-life concept with restoration, shifts towards the use of renewable energy, eliminates the use of toxic chemicals.

Stewardship during and after covid-19

In an open letter by Federated Hermes to companies they explain that their engagement dialogue during and after the pandemic means the focus is on resilience and stakeholders. 

The PRI SDG report

This report provides a high-level framework for any investors looking to shape real-world outcomes in line with the Sustainable Development Goals (SDGs)

Building back better

For the economic recovery from the COVID-19 crisis to be durable and resilient, a return to ‘business as usual’ and environmentally destructive investment patterns and activities must be avoided.

Investing with SDG outcomes

Following the PRI’s The SDG investment case – which laid out why the SDGs are relevant to investors this report takes the next steps by outlining a prospective framework for action.

Climate change and infectious diseases

Federated Hermes Nick Spooner explores how climate breakdown will exacerbate infectious diseases, and the steps that companies, investors and governments need to take to mitigate the impacts of the climate crisis and future pandemics.

The Goldilocks crisis

If an overly relaxed world has since slept through a series of environmental alarms, the coronavirus crisis may well be the wake-up call it needs to avert the worst climate change bear scenarios.

The ASI Responsible Investing podcast

Leading ASI’s climate agenda is Eva Cairns, Senior ESG Investment Analyst. She talks on a host of topics, from about her wide-ranging views on responsible investment and her passion in helping address climate change, to why she’s so keen that we all "grow the pie".

Net zero – idle promises

Companies’ pledges of ‘net-zero’ emissions are only meaningful if backed by credible action plans that do not rely heavily on offsetting. Read Aberdeen Standard Investment's report.

Investing in a changing climate: summary

Our climate is changing. In recent years, we have seen an increase in costly extreme weather events such as storms, wildfires and floods. At the same time, we are living through the hottest years on record. Read Aberdeen Standard Investments paper below. 

Investing in a changing climate

Our climate is changing. In recent years, we have seen an increase in costly extreme weather events such as storms, wildfires and floods. At the same time, we are living through the hottest years on record. Read Aberdeen Standard Investments paper below. 

Sustainability and the corporate world

In this article, Schroders focus on six key areas that point to a changing role of the corporate sector in society in the face of “inescapable truths”

Sizing the impact investing market

It is essential that the growth in impact investing is scale with integrity. The first step in that is to determine the current scale of the impact investing market and examine what that may mean for future growth and development.

Covid-19 and relationship with nature

In this series of articles, Federated Hermes will explore the links between infectious diseases, environmental issues and social sustainability, alongside the role of investors and companies. In part one, Sonya Likhtman looks at how the destruction of ecosystems can increase the risk of pandemics.

Prosperity and preservation

Federated Hermes discusses how the exogeneous shock of the coronavirus pandemic has confirmed the importance of sustainability.

Can we adapt to the new climate normal?

Climate change will test our ability to avoid mortal danger more than ever before. Humanity’s ability to adapt, something we have excelled at, must again come to the fore.

Tackling the climate crisis

As we navigate through the coronavirus and its impacts, we have an opportunity to shape the post-pandemic world so that confronting the climate emergency is an undisputed global priority.

Renewed, recharged and reinforced

Renewed, Recharged and Reinforced: Urgent actions to harmonize and scale sustainable finance (Report of the Global Investors for Sustainable Development Alliance to the European Commission).

The hidden costs of social impacts

Andrew Howard, Head of Sustainable Research, at Schroders, explains the rationale and analysis behind Schroders’ ground-breaking SustainEx tool and how the societal costs it measures could affect future corporate profitability.

Global warming forecast of 3.9°C

Schroders latest update to Climate Progress Dashboard suggests the current pace of change will result in temperatures rising by 3.9°C above pre-industrial levels.

OECD environment working paper #164

What policies for greening the crisis response and economic recovery? Lessons learned from past green stimulus measures and implications for the COVID-19 crisis

COVID-19 fiscal recovery packages

The COVID-19 crisis is likely to have dramatic consequences for progress on climate change. Imminent fiscal recovery packages could entrench or partly displace the current fossil-fuel-intensive economic system.

Stewardship – The 2020 vision

At the international business of Federated Hermes, we believe that the investment management industry could be a potent force in building a better world; but today that potential is largely unfulfilled.

Navigating the ESG labyrinth

In this handy guide, we share the knowledge and experience we have gained from decades of sustainable investing.

Sensitive intervention points

Sensitive intervention points in the post-carbon transition. We must exploit socioeconomic tipping points and amplifiers

The big book of SI

It is with great pleasure that we present to you our Big Book of SI. We firmly believe in sustainability investing, and think all the stars are aligned for this investment discipline.

Principles to guide investment

Investors will play a major role, whether active or passive, in climate change mitigation. To enable prudent decision-making, we propose three physically based engagement principles that could be used to assess whether an investment is consistent with a long-term climate goal.