PaperThe S in ESG
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.
Two of the world’s largest asset owners are putting pressure on Amazon to reveal exactly how it is protecting its workers from COVID-19. It’s a move indicative of the investor mood to focus attention on human and labour rights among investee companies, with a particular spotlight on the tech sector.
The €9 billion ($10 billion) Dutch fund for disabled workers, PWRI, has introduced a proprietary index that tilts towards companies that prioritise workers’ rights and health and safety issues. It’s a revolutionary approach to reflect the fund’s distinctive ESG priorities and a guide for other investors wanting to prioritise the “s” in ESG.