Environmental, Social, and Governance Issues
Analysis of environmental, social and governance (ESG) issues is an important part of the investment process. CFA Institute encourages all investment professionals to consider material ESG factors when making investment decisions. The Institute is also strongly focused on developing educational tools on ESG for its members and for the broader investment management industry. Below are the most notable ESG posts selected by the ARX Editorial Team.
Select "Research" in the upper left-hand corner of the page to find more ESG content in ARX's repository of more than 3000 posts.
Sustainable Finance in Asia Pacific: Regulatory State of Play
An overview of developments in sustainability in major jurisdictions of Asia Pacific and international policy environment examines practical implications for industry participants and policymakers, and calls for international coordination.
13 May 2020 | ASIFMA, Herbert Smith Freehills
ESG Disclosure in Asia: Key Findings from Hong Kong-Listed Companies
This webinar presentation includes a summary of research by CFA Institute on ESG disclosures in Asia-Pacific, and of a survey by BDO and PolyU SPEED on the performance of ESG reporting among Hong Kong-listed companies in 2018/19.
5 May 2020 | Piotr Zembrowski, CFA; Ricky Cheng; Dr. Artie Ng
Defining “Brown” Is Harder Than “Green” But Credit Implications Are Greater: ESG Credit Quarterly - Q1 2020
Fitch Ratings’ first ESG Credit Quarterly uses ESG Relevance Scores and broad research to capture current trends, such as the role of litigation in driving “E” and “S” changes, or physical risks spurring climate policy debate.
20 April 2020 | Fitch Ratings: Mervyn Tang, Andrew Steel
ESG in Credit 2020: White Paper
Interest in the application of ESG to debt capital markets is growing, as asset owners demand reports on ESG performance of their investments. Fitch’s ESG Relevance Scores provide insight on how ESG factors affect credit risk.
17 April 2020 | Fitch Ratings: Andrew Steel, Mervyn Tang
What Next for Sustainability? The Post-Pandemic Corporate Agenda
The post-pandemic recovery may present an opportunity to address long-standing challenges of sustainable development, such as inequality and climate change, and drive companies to take a more comprehensive approach to environmental and social issues.
23 April 2020 | Carbon Care Asia (CCA)
WEBINAR: ESG Risks in the Natural Rubber Sector
Natural rubber industry is dominated by smallholders who often are unable to absorb the costs of sustainable practices. The sector to be overlooked by global sustainability initiatives. Negative social and environmental impacts present a risk to downstream companies and investors.
16 April 2020 | CFA Society Singapore, CFA Institute Asia-Pacific Research Exchange | Video: 1 hr 8 min.
Using Corporate Reporting to Strengthen Sustainable Development Goals: Recommendations for National Policy Makers
The report presents five recommendations for governments and other policy makers on how they can use corporate reporting to strengthen the progress towards Sustainable Development Goals at the national level.
8 April 2020 | Global Reporting Initiative (GRI)
WEBINAR: Climate Change Integration in the Investment Process
Climate change presents a range of physical and transition risks for business and the financial industry. Investment professionals need education and tools to analyse and mitigate these risks. CFA Institute's Matt Orsagh presents an overview of the topic, followed by a panel discussion of industry experts in Asia-Pacific.
9 April 2020 | CFA Institute | Video: 1 hr 11 min.
Business Engagement in National Contributions under the Paris Agreement: Policy Recommendations on the Role of the Private Sector and Reporting
An analysis of the first round of Nationally Determined Contributions (NDCs) under the Paris Agreement includes recommendations for policy makers and businesses, trends, lessons learned, and examples of good practice.
11 July 2019 | GRI, CDP
Growth of Sustainable Debt in Emerging Markets: Deepening Focus on ESG
Emerging market (EM) economies are particularly susceptible to ESG risks. Increased focus on ESG credentials and top-down policy support will remain important in driving the growth and development of EM sustainable finance.
17 March 2020 | Moody's Investors Service: Rahul Ghosh, Anne Van Praagh
Impact of Climate Change and Carbon Transition Risks on Credit: Scenario Analysis
Moody's expects a more pronounced decarbonization trajectory and more frequent and volatile extreme weather in the future. Given a wide range of possible outcomes, we use scenario analysis to help assess the credit impact for rated issuers.
10 March 2020 | Moody's Investors Service: James Leaton, Brian Cahill
In Focus: Addressing Investor Needs in Business Reporting on the SDGs
"Business Reporting on the Sustainable Development Goals (SDGs)" is a collaborative effort of the Global Reporting Initiative (GRI) and the United Nations Global Compact. It aims to provide guidance to businesses and accelerate reporting on the SDGs.
18 July 2018 | GRI, PRI, the UN Global Compact
Sustainable Banking in ASEAN: Update 2019
2019 update of WWF’s annual assessment, which benchmarks major ASEAN banks’ ESG integration against a proprietary framework, reviews the sustainable finance landscape, and recommends ways for the ASEAN banking sector to drive sustainable development.
26 August 2019 | WWF: Chen Ted Kin, Jeanne Stampe, Naomin Tan
ESG Evaluation of SSE 50 Index Constituent Stocks on Epidemic Control
An analysis of a company’s behavior under an emergency such as the COVID-19 epidemic helps evaluate its resilience. The ESG Epidemic Control Valuation model developed by SynTao Green Finance serves as a supplement to the overall ESG assessment.
20 March 2020 | SynTao Green Finance
RESPOND - Resilient and Sustainable Portfolios
This report summarizes the analysis of 22 asset managers’ disclosures on their implementation of responsible investment (RI). It outlines how these asset managers disclose against WWF’s RI framework and how they can further push the frontier of RI.
27 January 2020 | WWF Singapore: Marie Gauthier, Keith Lee, Lauren Lynch, Lise Pretorius, Jeanne Stampe
Finding Gold in All That Glitters: Exploring Sustainability Bonds in Asia Pacific Region
A historical overview of the green, social, and sustainable bonds in Asia-Pacific region presents the challenges faced by sustainability-conscious international investors and solutions that may be helpful in navigating those challenges.
4 March 2019 | Solactive AG, Carbon Care Asia
Resilient and Sustainable Portfolios: A Framework for Responsible Investment
This report introduces WWF’s Responsible Investment Framework. It provides context around why the framework was developed, its uses and sheds light on the underlying indicators and sub-indicators the framework analyses.
30 April 2019 | WWF Singapore: Keith Lee, Jeanne Stampe, Ted Kin Chen, Lauren Lynch, Lise Pretorius
Asia Sustainable Finance Initiative: 2019 Annual Report
Based in Singapore, Asia Sustainable Finance Initiative (ASFI) is a multi-stakeholder forum that promotes best-practice, science-based sustainable finance across Asia. The Annual Report summarizes ASFI’s achievements since its launch in January 2019.
3 February 2020 | WWF Singapore
China Sustainable Investment Review 2019
A report by China Social Investment Forum and SynTao Green Finance presented at the 7th China SIF Annual Conference focuses on the sustainable investment practices of investment funds in China and reviews the country progress in ESG investment.
12 March 2020 | China SIF, SynTao Green FinanceDownload PDF >
WEBINAR: Using ESG Data to Simplify the Complex
As the interest in ESG investments continues to grow, data is critical to ESG portfolio construction. It can inform decision making and provide grater transparency. Data scientists explore the practical applications for investors.
4 March 2020 | S&P Dow Jones Indices: Steven Bullock, Jaspreet Duhra, Manjit Jus | Webinar: 58 min.Watch Webinar >
Top 10 Trends in Sustainable Investment in China 2020
Effects of climate change, materiality of ESG disclosures, product diversification, incorporation of ESG into fixed income, and Sustainable Development Goals as a product theme, are some of the new trends on China’s sustainable investing landscape.
12 March 2020 | SynTao Green Finance, China SIFDownload PDF >
VIDEO: How Is the Sustainable Investing Ecosystem Evolving?
The launch of futures on the S&P 500 ESG Index has expanded the ESG toolkit for market participants. S&P DJI’s Mona Naqvi joins CME Group’s Tim McCourt and DWS’ Luke Oliver to discuss. (Video: 10 min.)
9 January 2020 | S&P Dow Jones Indices: Mona Naqvi, Tim McCourt, Luke OliverWatch Video >
Sustainable Banking Regulations in ASEAN: Raising the Bar
In this report, WWF assesses sustainable banking regulations and guidelines issued by financial regulators or banking associations in ASEAN countries, and looks at whether banks headquartered in these countries meet these increasing expectations.
9 December 2019 | WWF-Singapore: Sylvain Augoyard, Ted Kin Chen, Jeanne StampeDownload PDF >
Shrinking Plastics: Implications of Tighter Regulations on the World Industry
If manufacturers ignore coming regulatory changes, companies with large exposure to commodity-type plastic products are more vulnerable to the risks caused by the decelerating growth in plastic demand and tougher regulatory environment for plastics.
27 September 2019 | WWF-Hong Kong: Peter Rawle, Jean-Marc Champagne, Sam HiltonDownload PDF >
Asia’s Consumer Goods Sector: The Missing Link in Sustainable Palm Oil Demand
With 60% of global consumption, the battle over sustainable palm oil will be won or lost in Asia. Read about how investors can drive Asia’s companies to remove deforestation from their supply chains in this brief by the Good Growth Partnership.
3 February 2020 | Good Growth Partnership: Owen HauckDownload PDF >
Understanding the EU Sustainable Finance Taxonomy: A Workshop for Japanese Investors
The European Union’s new classification system for environmentally sustainable economic activities, aka the EU Taxonomy, sets out criteria for what constitutes green investing. Japanese asset managers discuss how they can use it to explain their approach to ESG to clients.
23 February 2020 | Chie MitsuiDownload PDF >
2020 ESG Trends to Watch
ESG themes are long-term, but some can emerge with sudden force. Five trends are expected to unfold in 2020: climate change innovation, new terms of capital, re-valuing real estate, transforming workforce, and accountability to new stakeholders.
13 January 2020 | MSCI ESG Research LLC: Linda-Eling Lee, Meggin Thwing-Eastman, Ric Marshall
This publication has been assigned 1 Continuing Education (CE) credit under the guidelines of the CFA Institute Continuing Education Program. We encourage CFA Institute members to login to the CE tracking tool to self-document these credits. You can find more CE content in the Continuing Education section of ARX.
SRI Investing and Islamic Finance: Similarities and Differences
Although Islamic finance and sustainable, responsible, and impact (SRI) investing appear unrelated, they share key similarities. Emerging trends may enable financial services providers to develop products that satisfy criteria of both approaches.
3 February 2020 | CFA Institute: Usman Hayat, CFADownload PDF >
Indonesia Green Infrastructure Investment Opportunities
Indonesia plans to expand its green infrastructure to achieve positive environmental and economic benefits. The four key sectors are: renewable energy, low-carbon transport, sustainable water management, and sustainable waste management.
1 February 2020 | Climate Bonds Initiative: Kristiane Davidson, Monica Filkova, Nabilla Gunawan, Amanda GiorgiDownload PDF >
The Role of Korean Institutional Investors in ESG Investing
Environmental, Social and Governance (ESG) investing is increasingly gaining attention in Korea as such investments are expanding internationally. Korean institutional investors are less active in utilizing ESG investing principles than foreign institutional investors. Stronger means are needed to induce Korean institutional investors to move beyond short-term-oriented perspectives and embrace ESG investing.
9 January 2020 | Ick JinDownload PDF >
How Climate Change Could Impact Sovereign Risk
Climate change has implications for sovereign risk in both advanced and emerging economies, via changes in fiscal policy, social contract and political stability. Physical risks correspond to the potential economic and financial losses caused by climate-related hazards. Transition risks can be defined as the risk of economic dislocation and financial losses associated with the process of adjusting to a low-carbon economy.
4 December 2019 | FTSE Russell
Bridging the Gap in Green Bond Standards Between China and the West
Based on the different views of the concept of ecological civilization, the paper identifies major differences in green bond standards between China and the West, and makes suggestions for a better coordinated development of the global green bond market.
28 November 2019 | Suyang Liu, Zhiting Yun, Ziyue Zhou
Managing Short- and Long-Term Risks with ESG
ESG indexing has entered a new era, bringing sharper tools built with deeper data to an expanding risk management toolkit. S&P DJI’s Shaun Wurzbach leads a discussion that takes a practical look at using ESG to measure and manage risk.
18 November 2019 | S&P Dow Jones Indices | Video: 9 min.
ESG Disclosures in Asia Pacific
Mary Leung, CFA, Head of Advocacy for Asia Pacific at CFA Institute, speaks about the progress investors in Asia Pacific have been making in integrating ESG into investment decisions and how regulators have been shaping ESG disclosure regimes.
18 November 2019 | Bloomberg TV | Video: 6 min.
CFA Institute和 Principle for Responsible Investment (PRI) 发布的最新研究显示，国际客户需求与监管要求的独特结合加速了ESG投资在中国的发展，并对投资价值链产生连锁反应。 此份指南在与中国人民银行、中国证券投资基金业协会（基金业协会）和中国投资管理公司等主要机构的一系列访谈以及在北京（由 基金业协会提供支持）、杭州、上海和深圳举办的研讨会的基础上形成。.
8 November 2019 | Matt Orsagh, CFA, James Allen, CFA, Luo Nan, Justin Sloggett, CFA, Anna Georgieva, Sofia Bartholdy
ESG Integration in Asia Pacific: Markets, Practices, and Data
A report by CFA Institute and Principles for Responsible Investment highlights best practices in ESG integration in six APAC markets: Australia, China, Hong Kong SAR, India, Japan, and Singapore.
4 June 2019 | CFA Institute | 5 PL
About the Author(s)
Director: Scott Lee
Content manager, Editor: Piotr Zembrowski, CFA
Coordinator: Natalie Yiu