To achieve sustainable development, curb global warming and work towards the Paris Agreement, the financial industry needs to pivot. Responsible investing is a crucial element of this. By incorporating ESG (environmental, social, governance) portfolio screening into investment strategies, the financial industry can help turn the tide. Read on for more.
This S & S In Brief shares the details of the Bank of England's latest strategy to introduce climate stress testing.
If you’ve overhauled your fast fashion habit, adopted a flexitarian diet, avoided single use plastics like the plague, have you ever considered how your pensions are being invested to reflect your values? If you are actively trying to live a more sustainable lifestyle and avidly opposed to the oil, weapons or mining industries or an active campaigner for renewable energy and preserving natural resources, do you really want your prospective pension savings being invested into a portfolio that injects assets to the very causes you are fighting against? Cue, Socially Responsible Investing. This instalment of S & S Decoded seeks to unravel the concept of SRI as a long-term investment strategy to assess businesses and institutions that combine financial analysis with other criteria including environmental, social and good governance (ESG) factors. It will examine the various ¬screening processes, the metrics of ESG analysis and the factors that have fuelled the growth in the trajectory of the market. Through the provision of concrete examples, we can trace how the largest institutional investors and pension funds are engaging with SRI strategies to mitigate environmental, social and governance risks to create long term intangible value and financial returns for all stakeholders.
Green tinted glasses at the ready. Sceptical wolves of Wall Street may take some convincing, but embracing business strategies focused around sustainable long term value creation, innovation, efficiencies and triple bottom line results are not to be snubbed. In ‘Why It Pays To Be Green’ I evaluate how adopting an eco-advantage culture can simultaneously increase revenues and decrease costs. Included are concrete examples of how many organisations genuine commitment to stakeholders, sustainable living and circularity are proving to be critical competitive advantages.