Elizabeth Corley, chair of Schroders plc and Impact Investing Institute, sees global fund managers approaching a crossroads, where divergent regulation on sustainability issues will make it difficult to satisfy asset owner demands for systems thinking and universal ownership.
Investor engagement and stewardship programmes seek to change corporate behaviour, reduce risk and shape positive real world impacts. But experts notice that to be most effective investors need to ensure they are seeking to change the most material and important issues.
Nature is increasingly viewed as an economic asset, or natural capital. Identifying the natural capital assets that can be used most effectively to offset carbon, such as land and forestry, can provide a real advantage in the path to decarbonising investment portfolios.
Investors from Schroders, Trillium and PensionDanmark discuss how a changing regulatory picture and the economics of sustainable investment are coming together to create a tipping point in ESG, but they warn their peers to look beyond the label to what is on the inside.
Integrating the SDGs involves analysing investee companies' core business, the products and services they sell, and mapping that to the SDGs. Two investors, APG and Schroders, outline the indepth process.
Merely capturing carbon data doesn't do enough to inform asset owners about environmental risk but models and technology are emerging to do the job, the Smith School's Ben Caldecott explains.
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Decisions to Enable Net Zero Investing