Tag Archives: sustainability

What Is the Impact of a Company’s Environmental Data on its Weight in an Index?

One of the key objectives for the recently launched S&P/JPX Carbon Efficient Index is to motivate companies within the baseline index, TOPIX, to increase their level of environmental disclosure. By incorporating a mechanism to adjust constituent weights by their respective environmental data, the S&P/JPX Carbon Efficient Index has been designed to incentivize all companies, regardless Read more […]

Capturing and Evaluating Intentionality in Funds

One of the most salient themes in this year’s 29th Annual SRI Conference was intentionality. The topic of intentionality has jumped to prominence in ESG discussions—particularly in regard to ESG ratings for mutual funds—and understanding what it means is important for ESG market participants. In ESG terms, intentionality aims to evaluate whether a given fund Read more […]

The World’s Largest Pension Fund Engages in Carbon Disclosure

This blog post was co-authored with Dr Richard Mattison, Chief Executive Officer, Trucost, part of S&P Global On Sept. 25, 2018, Japan’s Government Pension Investment Fund (GPIF)—the world’s largest pension fund—announced its selection of two new low-carbon indices, the S&P/JPX Carbon Efficient Index and the S&P Global Ex-Japan LargeMid Carbon Efficient Index, with an allocation Read more […]

Carbon Costs – LatAm Analysis

For the first time, the main S&P DJI indices in Latin America have been analyzed by Trucost to reveal their exposure to a range of different carbon metrics that prudent investors may want to be aware of. A central element of the analysis is the estimated portion of earnings that could be lost if the Read more […]

Steps Toward a Low-Carbon Economy: From Footprints to Forward Estimates of Earnings at Risk

The landmark Paris Agreement to accelerate the transition to a low-carbon economy marked a sea change in the global fight against climate change. A swelling tide of carbon-limiting regulations has since emerged, shifting the narrative from a largely ethical debate to a material set of risks and opportunities for the financial markets, today. As the Read more […]

Combining the Quality Factor With Carbon-Efficient Portfolios – A Higher Quality Tilt With a Lower Carbon Footprint

In a previous blog, we highlighted that carbon-efficient firms tended to be high-quality companies. Moreover, integrated quality + carbon-efficiency hypothetical portfolios tended to have higher risk-adjusted returns and were more carbon efficient than the underlying benchmark. In this blog, we look into the risk and return characteristics of those hypothetical portfolios. This exercise helps us Read more […]

Responsible Investor Europe 2018 Conference: What to Watch for in the Remainder of 2018 and 2019

In a prior blog, we highlighted that the recent Responsible Investor Europe Conference 2018 gave attendees the sense of a coming of age in the environmental, social, and governance (ESG) movement that could potentially portend a future filled with a greater sense of urgency and call for action in the sustainability world. As noted previously, Read more […]

Responsible Investor Europe 2018 Conference: ESG Grows Up

The 11th annual Responsible Investor (RI) Europe Conference, held June 5-6, 2018, showed a marked departure in ESG themes and focus from previous years. Compared with prior sessions, there was a strong shift and a coming of age in the ESG movement. For example, the title for the keynote plenary of the RI 2018 Conference Read more […]

The Next Frontier in Footprinting: Carbon Accounting for Sovereign Bonds

Sovereign bonds remain largely unanalyzed by investors from a carbon risk and reporting perspective. This is despite clear acknowledgement in the Paris Agreement that governments have a critical role in curtailing global warming,[1] and the Financial Stability Board’s warning that climate change could affect all asset classes and the stability of the broader financial system.[2] Read more […]

The Department of Labor and ESG Guidance: Is the Pendulum Shifting?

In late April 2018, the Department of Labor’s (DOL) Office of Regulations and Interpretations issued the Field Assistance Bulletin No. 2018-01, clarifying guidance on how investment managers should interpret the DOL’s prior Interpretive Bulletins (IBs) issued in 2015 and 2016. Issued during the Obama administration, the IBs detail the exercise of shareholder rights, written statements Read more […]