Category Archives: ESG

Trimming the Emissions Tree

Some market participants may (understandably) get confused about the difference between “fossil fuel free” indices and “carbon efficient” indices.  They do sound a lot alike!  However, there are some important differences, and I thought I’d use this post to explain.  In a previous post, I discussed the elements of sustainability investing and the nature of Read more […]

ESG Investment – A Strategy for Long-Term Value Creation

In the past few years, there has been a paradigm shift in the investment strategy adopted by market participants, wherein they are shifting from a strategy of short-term gain to one of long-term value creation.  Traditionally, market participants have considered publically available records like balance sheets, income statements, and annual reports to analyze the long-term Read more […]

SRI Community Stands Together

The SRI (Sustainable, Responsible, Impact Investing) conference took place recently in Denver, and it is a three-day conference that brings together asset owners, asset managers, and other investment professionals in the ESG, shareowner advocacy, and impact investing space. The conference is in its 27th year, and given that the conference took place in mid-November—right after Read more […]

The Green-Eyed [Bond] Monster

Green bonds are bonds created to fund projects with positive outcomes that are directly related to the environment. They include the following. “Use of proceeds” bonds and revenue bonds, which are designated for green projects. Green project bonds, the proceeds of which are earmarked for specific projects with positive environmental outcomes. Green securitized bonds, which Read more […]

Water and Financial Returns—Don’t Be Hung Out to Dry

Recently, investment professionals have paid increasing attention to the impact of carbon-intensive businesses on financial returns.  Stricter regulation and increased certainty of higher carbon pricing have made this a mainstream concern.  S&P Global Ratings’ announcement of a green assessment of debt finance in September 2016 is one notable example of this trend. Water scarcity, as Read more […]

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 […]