Last week the market index S&P 500 ESG Index has undergone its fourth annual rebalance. The changes of the 2022 rebalance reflect the delicate balancing act of providing for broad-based market exposure but with meaningful and measurable sustainability-focused enhancements. While the methodology of the S&P 500 ESG Index reflects the evolving sentiments ofContinue…
Business, governments and citizens around the world increasingly recognize the challenges caused by our “take-make-dispose” approach to production and consumption. In 2019, over 92 billion tonnes of materials were extracted and processed, contributing to about half of global CO2 emissions. The resulting waste – including plastics, textiles, food, electronics andContinue…
Willis Towers Watson and Qontigo last year introduced the STOXX Willis Towers Watson Climate Transition Indices (CTI) to meet growing demand for transparent and systematic climate-oriented investment solutions. The indices employ a in house Climate Transition Value at Risk (CTVaR) methodology that quantifies the anticipated impact on equity valuations from the transition toContinue…
Climate Change Funds Climate change presents both a risk and an opportunity for investors. Some of the risks include transition risks, which arise with the shift to a low-carbon economy, such as changes in regulation, technology, and consumer behavior. Physical risks often refer to vulnerability in a company’s supply chainContinue…
UK Treasury is considering to regulate the majore raters to stop the risk of greenwashing for investors in sustainable assets. Adam Lyons, head of the Ministry’s green finance unit, recently announced that greenwashing, or unsubstantiated claims about corporate ESG credentials, was a serious problem in the financial markets. In orderContinue…
As Millennials approach middle age, they’re facing the same challenges as the generations that came before them, but they’re approaching them differently. As they look to their future, they’re finding their own footing amid new responsibilities and opportunities, and are ultimately discovering their own truths about money and investing. SamplingContinue…
Water risk factors are already stranding assets throughout the coal, electric utilities, metals & mining, and oil & gas sectors. Water security is no longer a small, plant-level operational issue for companies, but has become a strategic question for senior management. The research – High & Dry : How waterContinue…
A multitude of studies have sought to prove that environmental, social and governance (ESG) factors have a significant impact upon stock price returns, but few have focused on valuation. Results have been particularly mixed for some of the strongest-performing regions, notably the US. Previous studies have shown less convincing correlationsContinue…
As corporate-bond investors embrace decarbonization as a goal in portfolio construction and management and benchmark selection, the question arises whether decarbonization targets are at odds with other desirable index attributes, such as liquidity. That is, if their selected index excluded less liquid bonds, would that have hurt the index’s emissionContinue…
The European Banking Authority (EBA) published a Discussion Paper on the role of environmental risks in the prudential framework for credit institutions and investment firms. The Paper explores whether and how environmental risks are to be incorporated into the Pillar 1 prudential framework. It launches the discussion on the potentialContinue…
Association des
Investisseurs Responsables
à Monaco
enregistrée sous le numéro AD 01643
