Category Archives: ESG

Sustainability: Why Does the “Social” Category Matter?

When it comes to sustainable investing, three factors are typically used as measurements: social, environmental, and governance.  For most of us, the benefit to reducing our environmental impact is obvious.  The importance of governance has also been well researched by S&P Dow Jones Indices—just look at the S&P LTVC Global Index. The social factor, however, Read more […]

Driving long-term value creation

The annual rebalancing of the Dow Jones Sustainability Indices (DJSI), the most famous benchmark for corporate sustainability in the world, took place on September 8th 2016. With nearly 2,000 companies analyzed currently and another nearly 2,000 to be analyzed in RobecoSAM’s 2016 Corporate Sustainability Assessment (CSA), it is clear that sustainability is no longer something Read more […]

Millennials and the Investment Shift

Lately, it seems like millennials have been everywhere: in the news, peppered throughout pop culture, and a serious topic of debate among the investment and financial landscape. So—who are the millennials and why do they matter?  What impact will their wealth and world views have on sustainable investing? “Millennials” refers to the generation born between Read more […]

Water Risk for Business – Three Key Questions

Water crises are the top societal global risk in terms of impact, according to The World Economic Forum’s Global Risk Report 2016. There is of course no lack of water; the risk is around availability of fresh water which constitutes just 2.5% of the world’s water. This has broadly been the case for millennia – Read more […]

How to Get into (Index) Heaven

A poll conducted in 2014 revealed that 74% of Americans believe in heaven, which was defined for respondents as a place “where people who have led good lives are eternally rewarded.” The index world has a heaven too, where companies aspire to be and good deeds are recognized. It’s called the Dow Jones Sustainability Index. Read more […]

What Is ESG Investing?

Sustainability investing is one of the fastest-growing segments of the asset management industry.  It is also one of its most complex.  This posts aims to provide some clarity on this increasingly relevant topic. Sustainable investing means looking at “extra-financial” variables, i.e., environmental, social, and governance (ESG) factors (together or separately) when making investment decisions.  Such Read more […]

$60 Trillion – Yes, Trillion – Committed to Investing This Way

Index providers often work with large pensions and asset managers, so it’s difficult to surprise us with big numbers. Recently, though, I saw a chart with some staggering sums. I am pasting it below. What is the PRI? This chart shows the investment world’s adoption of the “PRI”, the Principles for Responsible Investment. In 2006, Read more […]

ESG Integration for the Masses

Historically, ESG indices have not attracted asset volumes comparable to smart beta index strategies.  This could be attributed to the fact that market participants and academics alike have struggled to link ESG-based strategies with financial performance. As researchers shift their focus from how to study ESG to how to integrate ESG data into products and Read more […]

Buybacks, Dividends, Capex, and Long-Term Value Creation

This is the fourth and final in a series of blog posts relating to the launch of the S&P Long-Term Value Creation (LTVC) Global Index. In our recent paper “Long-Termism Versus Short-Termism, Time for the Pendulum to Shift?” we discussed reasons why short-term corporate behaviors persist in developed economies.  One of the key drivers was Read more […]

Key Environmental Metrics for Investors: It’s not Just Carbon

Emissions of carbon dioxide and the other greenhouse gasses are often foremost in people’s minds when they consider environmental risk.  This is understandable as, if we continue on our current path, we are set for four degrees Celsius of warming by 2100, compared with pre-industrial levels.  Expected consequences include the flooding of coastal cities, irreversible Read more […]