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. In January, the $7trn AUM manager made a commitment to

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

Hit or flop: What lies ahead for ESG ETFs?

While environmental, social and governance (ESG) factors have been influencing investing for many years now and investors have been incorporating more and more ESG strategies into their portfolios, the proportion of this market taken up by exchange traded funds remains tiny. According to a McKinsey & Co study last year, some $22.9 trillion (€19.7 trillion), or 26% of total professionally managed assets in Asia, Australia, New Zealand, Canada, Europe and the US was invested in ESG strategies at
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