Responsible investing is no fad but its longevity must be proven

The turmoil of this year has been reflected in markets and many investment strategies have faced severe performance issues. Equity markets have witnessed extreme volatility while stubbornly high inflation has made bonds unappealing. Investors have responded with their feet, with outflows from funds mounting month-on-month according to figures from the Investment Association.  One exception to … Read more

Four ways to check under the bonnet of ESG funds

Greenwashing is one of those terms that makes a lot more sense when discussing consumer goods than investment strategies. I recently saw a soft drinks company claim ‘water neutrality’ (making drinks commercially uses staggering quantities of water) but the small print showed it excluded most of the water used when manufacturing the drinks. This is … Read more

Fearless Woman: Shifting from ‘star’ to ‘team’ investing

Erich Gerth, CEO of RBC BlueBay Asset Management, expects opportunities for women in investment to increase. ESG Clarity is delighted to support the City Hive campaign celebrating 50 years of women investing in the UK. What or who inspired you to work in investing? A former schoolmate of mine. What do you think the future looks like for women in investing? … Read more

Substantial surge in net-zero tech investment but further scale needed

We have seen a substantial surge in investment in net-zero tech, with investment reaching record highs in 2021 and remaining relatively resilient in 2022 despite a wider market downturn. Yet there are significant challenges to developing and scaling the net-zero technologies needed in time to enable net zero by 2050. The International Energy Agency estimates that … Read more

Provide more sustainable options to meet demand

Interest in sustainable investing is high and the investment industry must step up to meet this demand. Our Sustainable Banking Report 2022, developed in partnership with PwC, found more than 90% of 3,000 investors we surveyed want to allocate funds into sustainable investments. We calculated that in just 10 growth markets, this could translate into … Read more

Will the industry lean into honest performance reporting – warts and all?

There have been a number of ‘impact reports’ and ‘impact calculators’ launched over the past few years – many rich with information, both qualitative and quantitative. What there’s been less of is clear articulations of what the reported data covers and what it doesn’t – what it means (the context), and how it’s measured against … Read more

ISSB Scope 3 guidance for companies will help asset managers report

The International Sustainability Standards Board (ISSB) is offering guidance and reliefs to companies disclosing their Scope 3 greenhouse gas (GHG) emissions. At COP15 last week the global standards body agreed a framework that will allow companies to include information in their reports from their supply chains that have different reporting cycles. It also includes a … Read more

Companies need ‘room to fail’ on human rights

Investors need to allow companies room to be open about failings when it comes to human rights issues in their supply chains, a Principles for Responsible Investment (PRI) conference in Barcelona heard earlier this month. Louise Davidson, CEO of the Australian Council of Superannuation Investors (ACSI), said investors in Australia have been motivated to look … Read more