Category Archives: ESG

DJSI Push Companies to Achieve the SDGs

On Sept. 7, 2017, RobecoSAM and S&P Dow Jones Indices (S&P DJI) announced the results of the annual rebalancing of the Dow Jones Sustainability Indices (DJSI).  This year, a record of 942 companies (up 9 %) from around the world that had participated in RobecoSAM’s annual Corporate Sustainability Assessment (CSA) eagerly waited to learn whether Read more […]

Playing catch-up: Investors lag behind corporations in adopting sustainability principles

When I was a teenager growing up in Basel, I witnessed first-hand one of the events that put sustainability thinking on the agendas of the corporate landscape. On November 1, 1986, I was woken up by loud sirens. A disastrous fire had broken out at a chemical plant warehouse. Over 1,000 tons of agrochemical product Read more […]

Carbon Exposure of Smart Beta Indices

Carbon emission awareness has been gaining greater prominence on many market participants’ radar as they continue to seek and demand carbon emission information and related risks for companies associated with climate change.  To address this need, the Financial Stability Board taskforce recently published a series of recommendations on how companies should report climate-related risks and Read more […]

DJSI – A temperature gauge for Sustainability Investing

On September 7, the review of the renowned Dow Jones Sustainability Index (DJSI) series will be announced. Now in its 19th year, the index family continues to be the gold standard of large cap ESG performance, and serves as an effective engagement platform for investors who want to encourage companies to improve their corporate sustainability Read more […]

ESG in India Today

Green infrastructure, especially clean and renewable energy, is at the heart of Indian ESG efforts today. Despite the U.S.’s withdrawal from the Paris Agreement, India stands with its commitments made at Paris. The Indian government’s commitment—in context of the recent ratification of the Paris Agreement—is to reduce emissions by 33% to 35% by 2030 and Read more […]

China’s Green Bond Markets

China has emerged as a global leader in green finance, especially green bonds, and from 2014 to 2016, it was the fastest-growing market in the region for sustainable investing.  The total amount of green-labeled bond issuances amounted to USD 93.4 billion at the end of 2016 and reflected strong China-based issuances (40% of labeled green Read more […]

Asian Asset Owners Are Leapfrogging Into ESG

Sustainable investing has become particularly popular in Europe, across many countries.  In the Asia Pacific region, certain countries such as Japan and Australia have shown stronger interest in ESG thanks to asset owner demand, availability of ESG data, and regulatory pressures.  In the last couple of years, we have seen some of Japan’s largest institutional Read more […]

Green Bonds: Addressing Solvency II Benchmarking Requirements

Solvency II is the new region-wide supervisory framework for insurance and reinsurance companies operating in the European Union.  The new regime includes three pillars, calculation of capital reserves, management of risk and governance, and reporting to the national supervisory authority.  Moving to a risk-based approach in calculating solvency capital requirements (SCR) will require reassessment of Read more […]

Carbon Pricing Is Essential for Effective Climate-Related Financial Disclosure

The Financial Stability Board’s Task Force on Climate-related Financial Disclosures published its final report on June 29, 2017, leaving many companies and market participants considering how best to implement its important recommendations. The recommendations are groundbreaking because they recognize climate change as a systemic risk to the financial stability of the global economy and present Read more […]

Aligning SDG Goals – The Next ESG Challenge

INTRODUCING THE SUSTAINABLE DEVELOPMENT GOALS The term “sustainable development” has been in existence for decades — 30 years ago, in 1987, the World Commission on Environment and Development proposed developing new ways to assess progress toward sustainable development in the “Brundtland Report.” Historically, there was a lack of comprehensive goals or targets for “the future Read more […]