In contrast to the politicization of ESG investing, which has been criticized for unclear definitions and unreliable methodologies, Transition Investments are grounded in credible, measurable impact frameworks that ensure both social and financial returns — writes TIL Executive Director Bernardo Bortolotti. His opening piece for TIL’s 2024 Annual Report serves as a walk-through for all themes thoroughly explored in the issue by our contributors: Robert W. van Zwieten, Harald Walkate, Abhinav Mangat, Joywin Mathew, Maja Kent, Sanjeev Gupta, Marat Zapparov. Special thanks to NYU Stern School of Business at NYU Abu Dhabi, Mubadala, MEASA Partners
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💡 Did you know your investments can drive positive change? Discover how ESG (Environmental, Social, and Governance) criteria are influencing modern investment strategies. By focusing on sustainability and ethical practices, you can support companies that make a difference. Dive into our latest article to learn how ESG investing can benefit both your portfolio and the planet. #ESGInvesting #SustainableFinance #EthicalInvestments #GreenInvesting #FutureOfFinance https://lnkd.in/gMjehszN
How ESG Criteria Influence Investment Strategies In Modern Era - WEALTH & PLANET
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#ESG has always been closely entwined with investing. It may not be widely known but the term dates back to 2004, when a report commissioned by the UN called for “better inclusion of environmental, social and corporate governance (ESG) factors in investment decisions”. (United Nations Environment Programme Finance Initiative (UNEP FI)) (Who Cares Wins, 2004). ESG investing means that investors consider environment, social and governance criteria (alongside other financial factors), a broad concept (more so than green or (#ethicalinvesting) allowing investors to review criteria for identifying investments that preserve the natural world, improve governance and ensure that social issues are improved. As a concept, this type of responsible investing has been around for over 100 years. For instance, the US Pioneer Fund, launched in 1928, avoided investing in alcohol and tobacco. By the 1990s, the concept of the “#triplebottomline” or “people, planet, profit” accounting framework, began to take hold. Organisations began to take account of their social and environmental performance in addition to their financial results. In 2006, the UN launched its “Principles for Responsible Investment” (#PRI), a framework for incorporating ESG issues into investment. This began with 63 signatories overseeing $6.5 trillion in assets. In 2020, this had grown to more than 3,000 signatories with more than $100 trillion under management. In 2015, a huge global leap was made through the 193 countries of the UN General Assembly adopting the UN Sustainable Development Goals (#SDGs). These seventeen global goals together provide guidance for countries to move towards a sustainable world. According to the Business and Sustainable Development Commission, by following the SDGs, this could potentially create opportunities worth an estimated $12 trillion by 2030. ESG driven investing is the fastest-growing sector of the asset management industry. According to Morningstar Sustainalytics, assets in the sector increased 53 per cent year on year to $2.7 trillion in 2021. https://lnkd.in/ee-E6cWh Geoff Burnand Tiffany Harnsongkram Cecilia Cosa Sohaib Arshad Richard Collins FICRS Flavia Micilotta Eileen Donnelly Tamara Pitelen Mahir Humbatov Manon van Paaschen Kate Cacciatore Blake Goud Amara G. Giuseppe van der Helm Wajahat Azmi, PhD Mark Robertson Nizar Mashal Andy Whyle (FIEMA) Karin Malmberg Anders Nordheim Erik van Buuren TANIS H. Rodney Schwartz Wael Mohamed Aaminou Andrew Newton, PhD Gareth Johnston Saeeda Ahmed- Douglas Sabo Floris Lambrechtsen Esther Goldberg Polonsky Laura J. Spence, FAcSS Jennifer Morgan Michael Bennett Jeffrey Hogue Simone Awramenko Dr. Yahia Abdul-Rahman Akhtar Mohammed Ali Adnan Ibrahim, SJD Mohammad Asfour
#ESG has always been closely entwined with investing. It may not be widely known but the term dates back to 2004, when a report commissioned by the UN called for “better inclusion of environmental, social and corporate governance (ESG) factors in investment decisions”. (United Nations Environment Programme Finance Initiative (UNEP FI) (Who Cares Wins, 2004). ESG investing means that investors consider environment, social and governance criteria (alongside other financial factors), a broad concept (more so than green or #ethicalinvesting) allowing investors to review criteria for identifying investments that preserve the natural world, improve governance and ensure that social issues are improved. As a concept, this type of responsible investing has been around for over 100 years. For instance, the US Pioneer Fund, launched in 1928, avoided investing in alcohol and tobacco. By the 1990s, the concept of the “triple bottom line” or “people, planet, profits” accounting framework, began to take hold. Organisations began to take account of their social and environmental performance in addition to their financial results. In 2006, the UN launched its “Principles for Responsible Investment” (#PRI), a framework for incorporating ESG issues into investment. This began with 63 signatories overseeing $6.5 trillion in assets. In 2020, this had grown to more than 3,000 signatories with more than $100 trillion under management. In 2015, a huge global leap was made through the 193 countries of the UN General Assembly adopting the UN Sustainable Development Goals (#SDGs). These seventeen global goals together provide guidance for countries to move towards a sustainable world. According to the Business and Sustainable Development Commission, by following the SDGs, this could potentially create opportunities worth an estimated $12 trillion by 2030. ESG driven investing is the fastest-growing sector of the asset management industry. According to Morningstar Sustainalytics, assets in the sector increased 53 per cent year on year to $2.7 trillion in 2021. #Sustainability
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#ESG has always been closely entwined with investing. It may not be widely known but the term dates back to 2004, when a report commissioned by the UN called for “better inclusion of environmental, social and corporate governance (ESG) factors in investment decisions”. (United Nations Environment Programme Finance Initiative (UNEP FI) (Who Cares Wins, 2004). ESG investing means that investors consider environment, social and governance criteria (alongside other financial factors), a broad concept (more so than green or #ethicalinvesting) allowing investors to review criteria for identifying investments that preserve the natural world, improve governance and ensure that social issues are improved. As a concept, this type of responsible investing has been around for over 100 years. For instance, the US Pioneer Fund, launched in 1928, avoided investing in alcohol and tobacco. By the 1990s, the concept of the “triple bottom line” or “people, planet, profits” accounting framework, began to take hold. Organisations began to take account of their social and environmental performance in addition to their financial results. In 2006, the UN launched its “Principles for Responsible Investment” (#PRI), a framework for incorporating ESG issues into investment. This began with 63 signatories overseeing $6.5 trillion in assets. In 2020, this had grown to more than 3,000 signatories with more than $100 trillion under management. In 2015, a huge global leap was made through the 193 countries of the UN General Assembly adopting the UN Sustainable Development Goals (#SDGs). These seventeen global goals together provide guidance for countries to move towards a sustainable world. According to the Business and Sustainable Development Commission, by following the SDGs, this could potentially create opportunities worth an estimated $12 trillion by 2030. ESG driven investing is the fastest-growing sector of the asset management industry. According to Morningstar Sustainalytics, assets in the sector increased 53 per cent year on year to $2.7 trillion in 2021. #Sustainability
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The concept of Environmental, Social, and Governance (ESG) criteria is no longer a side consideration; it's becoming central to investment strategies. This trend underscores a significant shift in the investment landscape, where sustainability is not just a buzzword but a core component of financial decision-making. We examine the factors driving the heightened focus on ESG. https://lnkd.in/dzYyiKz7 Waystone #esgfunds #fundmanagers
Sustainable finance’s growing impact on investment strategies | Centaur, a Waystone Group Company
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Embracing Sustainable Investing: Shaping the Future of Finance In today's ever-evolving financial landscape, the significance of sustainable investing cannot be overstated. As we navigate through global challenges such as climate change, social inequality, and resource depletion, investors are increasingly recognizing the imperative to align their financial goals with environmental and social responsibility. 📊 Let's delve into the data: Financial Performance: Contrary to the misconception that sustainable investing sacrifices returns, numerous studies have shown that integrating environmental, social, and governance (ESG) factors into investment decisions can actually enhance long-term financial performance. According to research by Morgan Stanley, companies with strong ESG profiles have exhibited better profitability and stock price stability compared to their counterparts. Risk Mitigation: Sustainable investing not only offers potential for superior returns but also helps mitigate various risks inherent in traditional investment approaches. Companies with robust sustainability practices are better equipped to manage environmental and social risks, thereby reducing the likelihood of regulatory fines, reputational damage, and supply chain disruptions. Market Demand: There's a growing demand for sustainable investment products among investors of all generations. Millennials and Gen Z, in particular, are driving this shift, with studies indicating that they are more inclined to invest in companies aligned with their values. As this demographic cohort accumulates wealth and becomes a dominant force in the investment landscape, the demand for sustainable investment options is expected to soar. Regulatory Landscape: Governments and regulatory bodies worldwide are increasingly prioritizing sustainability initiatives and implementing policies that incentivize responsible investing practices. From carbon pricing mechanisms to disclosure requirements for ESG factors, regulatory developments are reshaping the investment landscape and compelling investors to integrate sustainability considerations into their decision-making processes. In conclusion, sustainable investing isn't just a moral imperative; it's a strategic imperative for investors seeking to thrive in today's dynamic financial environment. By incorporating ESG criteria into investment strategies, we can drive positive change while simultaneously achieving financial objectives. Let's seize the opportunity to shape a more sustainable and prosperous future for generations to come. #SustainableInvesting #ESG #FinanceForGood )
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Southeast Asia as the new ESG investment hub
Southeast Asia as the new ESG investment hub
klementoninvesting.substack.com
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Have we already agreed that rants about the "death of ESG" are full of sound and fury, signifying nothing? We have, I think. And this headline is a good example, referring to the near-universal integration of "sustainable investing" among investors - which is consistent with everything we know about the value of legitimate research formerly known as ESG. So that wraps it up! Incorporating investment research that considers risks and opportunities tied to sustainability themes is good! Just don't call it that...thing...that...gets...everyone...angry..... 😡 #ESG #sustainableinvesting
80% of Global Investors Now Have Sustainable Investment Policies in Place: Deloitte/Tufts Survey - ESG Today
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If you’ve put off incorporating ESG factors into your investment plan because you’re worried it’d harm returns, new research could put your mind at ease. In fact, a study indicates that companies with strong ESG ratings could deliver higher returns. Click the link below to find out more.
Research links stronger investment returns with high ESG ratings - Zest Financial Consultants
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Family enterprises, known for their long-term investment approach, are increasingly integrating sustainability and ESG factors into their strategies to enhance resilience and drive value creation. As sustainability becomes a priority, what considerations and opportunities should family enterprises focus on to ensure successful ESG integration?
How family enterprises can build ESG into investment strategies
ey.com
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ESG assets are projected to reach $50 trillion, and this growth can be attributed to a fundamental shift in investor priorities. As more individuals and institutions recognize the long-term value of sustainable and responsible investing, the demand for ESG-compliant assets continues to rise. Investors are increasingly aware that companies with strong ESG practices tend to exhibit lower risks and better performance over time. I think we can agree this trend reflects a growing understanding that sustainability is not just a moral imperative but also a financial one. How do you see ESG factors influencing investment strategies in the coming years? #ESG #SustainableInvesting #Finance #InvestingTrends #PerformanceSustainability
ESG assets could reach $50T despite ‘woke capitalism’ labeling for one simple reason
fortune.com
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