Emerging markets funds face losing the French socially responsible investment (SRI) label if they do not divest from a number of jurisdictions. The Investissement Socialement Responsable (ISR) label announced stricter eligibility criteria in December 2023, including funds becoming ineligible if they invest in companies involved in new projects related to the exploration, exploitation and refining … Read more
Investors are reducing their exposure to emerging markets (EMs) despite positive growth signals, leaving plenty of opportunity for those that can buy in to companies at discounted prices, said Andrew Ness, emerging market portfolio manager at Franklin Templeton. Here, Ness discusses how investment in EMs is changing on the back of the global transition towards … Read more
For responsible investors, banks pose a unique challenge. Whereas other companies provide plenty of information about themselves, an investment bank’s activities are so extensive (and its loan book so impenetrable) that investors can often have little idea of what exactly they are funding. Instead, they scrutinise a bank’s policies to see whether its activities align … Read more
The world is on an “unsustainable path” and more needs to be done by investors to direct capital towards mitigating climate change investment, professionals said as they react to the news global temperatures breached 1.5C for a year for the first time. Monthly data released by Copernicus Climate Change Service (C3S) last week showed temperatures … Read more
In this Q&A, Ed Simpson, head of energy and infrastructure at Gravis Capital Management, shares his thoughts on the economic considerations surrounding the future of net zero in the UK, exploring the costs of implementation, potential long-term consequences of inaction, and the crucial need for diversification in energy generation. Why is the UK spending so … Read more
To achieve net zero by 2050, investment in renewable energy must triple by 2030, reaching around $4trn (£3.2trn). However, as the renewables industry expands at pace, so too have concerns about its social impact. Allegations of forced labour in solar supply chains, child labour in battery mineral sourcing, and indigenous rights violations in wind farms … Read more
Companies in emerging Asia have low ESG ratings but an increasing willingness and receptiveness for change, according to GIB Asset Management’s Kunal Desai. Crucially, he says in this Green Dream video interview, there is also an understanding that this “can be a potent source of shareholder returns”. Desai, manager of the GIB AM Emerging Markets Active … Read more
Global ESG assets surpassed $30trn in 2022 and are on track to surpass $40trn by 2030 to reach over 35% of projected $140trn assets under management, according to the latest ESG report from Bloomberg Intelligence (BI). The report said the ESG market is set to mature and align with global regulation by the end of … Read more
State Street Global Advisors has launched the Article 8 State Street Emerging Markets ESG Hard Currency Government Bond Index fund, which invests in emerging market government bonds. The fund, which deals in USD-denominated bonds, began with an initial investment of $50m (£39.6m) and follows the J.P. Morgan ESG EMBI Global Diversified Index, which puts emphasis … Read more
Blended finance offers a solution that “can help alleviate the technological and market risks” associated with investment in the low carbon economy, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and auctusESG. The report Blended Finance: Key to Bridging Energy Transition Gap in Developing Countries emphasises that blended finance … Read more