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Sustainability

Honey, I shrunk the ESG alpha

Research conducted by Scientific Beta looks at the performance of ESG strategies and asks whether non-financial information in ESG scores offers additional performance benefits. The research finds that the effect of risk adjusting the performance of ESG strategies shrinks the apparent alpha to a level where none of the strategies delivers positive alpha.
Sustainability Digital 2021

Bridgewater on the impact revolution

Integrating impact alongside risk and return is a revolution that will see more diversification among investor allocations to asset classes such as commodities. Elsewhere, it requires using multiple data sets to analyse stocks and sovereign bond allocations to see the real-world impact of a company’s product or services, and which governments are heading to net-zero. Bridgewater’s head of investment research Karen Karniol-Tambour explains.
Sustainability

New benchmarks for ESG accountability

The measurement and management of ESG needs to shift from the current paradigm of self-definitions of sustainability according to founder of the Predistribution Initiative, Delilah Rothenberg. She says the World Benchmarking Alliance’s new initiative – the Financial System Transformation Benchmark –aims to address the critical gaps which may result in valuation methodologies and incentive structures changing.
Climate

A new era of ESG under Biden

Against all odds, there is an air of optimism in 2021. We have entered a new era in US politics, and the inauguration of the Biden-Harris administration brings renewed hope for sustainable investment, particularly climate policy. So what can investors expect?
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