IW Long Reads: Is nuclear energy on the road to ruin or a sustainability silver bullet?

Anyone who has seen the TV series Chernobyl knows that when things go wrong with nuclear power the consequences are dire. And while it may seem that matters have evolved since the days of the Soviet Union, the nuclear disaster in Fukushima that happened just ten years ago suggests otherwise. For many, it is a no-brainer that nuclear power should be categorically excluded from sustainable and ESG portfolios. But in our desire to divest from anything harmful, are we overlooking its positive potential?

EM managers 'have to work harder' but ESG is growing

In recent years, the integration of ESG principles has spread across a growing number of asset classes, and now emerging markets, which have traditionally been slow on the uptake, are no longer immune. During the past three years, there has been a significant increase in ESG emerging market funds available to European investors, with Morningstar figures showing the number of European-domiciled strategies has risen by 89% since 2017, more than double the 40% growth for the wider European sustain-able fund universe over the same time period.

IW Long Reads: Does low carbon mean high returns? How investors can stoke the fires of decarbonisation

Last year, investment strategies with an underweight to carbon-intensive industries such as oil and gas outperformed their benchmarks. However, many have pointed out that 2020 was an unprecedented year, as the global pandemic dramatically reduced demand for oil, and have warned that we may well see a reversal in fortunes for ESG-focused funds as the world returns to normal.

IW Long Reads: Are carbon offsets the answer to the climate change crisis?

If there is one issue that transcends all the different areas of modern journalism, then climate change is it. It affects many parts of our lives, from our diets to the way we heat our homes to our choice of holiday destinations, and of course it is becoming a key consideration for investors too. According to an independent study, commissioned by Clim8 Invest, climate change is the number one concern for 61% of UK consumers. One tangible way to measure the positive contributions of investment

The coming of age of passive ESG

The coming of age of passive ESG Passives have only started incorporating ESG principles relatively recently, but this area of the market has seen rapid growth. According to Morningstar, the number of passives ESG products and the money invested in them has more than doubled over the past three years, with the number of new launches reaching record highs. To read the full article, click here to see the ESG Clarity digital magazine

Fixed income ESG ETFs: Unwrapping the rapidly developing market

Environmental, social and governance (ESG) principles have not traditionally been popular with fixed income investors, especially in the ETF space. Having originated in the active equities space, ESG investing has remained focused on equities for some time, however, over the last few years, the interest in ESG from fixed income investors has grown, and so has demand for fixed income ESG passive products and indices.

Boohoo scandal ‘poses challenge' to ESG ratings

The slavery scandal engulfing fast fashion brand Boohoo has highlighted the challenge asset managers face when trying to pick stocks for an ESG portfolio, especially when it comes to the social pillar that gained prominence in the wake of the Covid-19 pandemic Since the pandemic hit, numerous pieces of research have indicated that the ‘S’ in ESG has become more important for investors and greater attention is now being paid to how companies treat their workers. Boohoo is one of the most promin

BlackRock updates on engagement progress since January ESG pledge

BlackRock has published a report on how it has ramped up its climate-related engagement with companies in carbon-intensive sectors, six months after outlining its fresh commitment to ESG within its investment framework In its first report on BlackRock Investment Stewardship’s approach to sustainability, the world’s biggest asset manager for the first time published detailed information on its engagement and voting practices in 2020 so far.

Industry bemoans lack of support for green projects in Covid-19 recovery plans

Industry bemoans lack of support for green projects in Covid-19 recovery plans Governments must not allow the Covid-19 crisis to shift their priorities away from climate change mitigation, as experts warn that only a small proportion of fiscal stimulus announced in response to the pandemic can be considered “green” In its Green Weekly Insight report, the Institute of International Finance (IIF) warned that rising debt levels as a result of the coronavirus pandemic could hinder investment in cl

Three-point action plan to take a stand against racism

Three-point action plan to take a stand against racism In a heartfelt speech on YouTube, Dawid Konotey-Ahulu, founder of Redington and spokesman for the #talkaboutblack campaign, issued a call to action for companies and individuals to unite in their effort to eradicate racism and make the world a fairer place Speaking as part of the #talkaboutblack campaign, which brings together asset management professionals to drive change in the industry, Konotey-Ahulu said this is the first time in human

ESG investing = Easy, Special, Good?

Even if you’re not an investment guru, you may well have heard of ESG. More and more financial headlines are sporting this acronym and everyone seem to be talking about it. But what does it actually mean and is it relevant for you? Like many other things in the world of investing, the first step is to unravel the acronym. ESG stands for Environmental, Social and Governance. These are three pillars that influence an investment style that aims to, for lack of a better term, make the world a better place.

E, S or G: Which drives outperformance?

In a paper entitled Deconstructing ESG Ratings Performance, MSCI has taken a deep dive into the impact of ESG factors on the performance of companies in different sectors The aim of the research was to determine whether the governance factor (the G in ESG) is the most important driver of performance for companies, and whether the weighting of E, S and G factors makes any difference to long-term performance. MSCI’s findings clearly show that while the G in ESG has more impact on companies’ perf

Sustainable investments prove, well, sustainable

Sustainable investments are standing up. Throughout the recent market carnage, data from Morningstar shows investment funds targeting companies that care about the environment, society and good governance have outperformed those that don’t. Thus, it seems, sustainable investment is living up to all definitions of the term. Here at New Money, we’ve known for a while that sustainable investments aren’t just about doing the ‘right’ thing: it could also make you more money in the long-run. We saw p
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