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.
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
Practitioner's Brief: Drilling into Corporate Responsibility - Thai Researcher Finds Measurable Impact of Social Engagement
In the paper “Synergistic effects of CSR practices on firm value: Evidence from Asia Pacific emerging markets ”, Boonlert Jitmaneeroj, assistant professor of finance, University of the Thai Chamber of Commerce, introduces a structural equation modeling approach to investigate if corporate social responsibility (CSR) correlates with value creation. This new approach does not settle the debate, but it leads to some noteworthy findings. In particular, it sheds new light on the “S” in ESG.
21 October 2019 | Rich Blake
Corporate Non-Financial (ESG) Incident Report 2018: Top 200 Korean Listed Companies
An overview of ESG incidents among Korea’s top 200 listed companies in 2018, based on Who's Good ESG Incident Analysis, a real-time AI-based corporate ESG risk analysis platform, which analyses incidents reported in news.
22 October 2019 | Who's Good, PBC
Comparing China Green Definitions with the EU Sustainable Finance Taxonomy
This briefing provides a preliminary analysis on China's Green Bond Endorsed Project Catalogue, the Green Industry Guiding Catalogue and the EU Sustainable Finance Taxonomy in terms of their guiding principles, users, classification and screening.
10 September 2019 | Climate Bonds Initiative
Australia Green Finance: State of the Market 2019
Australia's green bond issuance has picked up significantly in 2019, with AUD15.6bn issued before 30 June. This places Australia 10th in cumulative global country rankings and 3rd in Asia Pacific.
12 September 2019 | Climate Bonds Initiative
Green Infrastructure Investment Opportunities: Australia 2019
The report advocates increasing green investment in the real economy to support Australia’s transition to a low carbon economy. It aims to facilitate greater engagement between project owners, governments and institutional investors.
12 September 2019 | Climate Bonds Initiative
ESG Disclosures in Asia Pacific
ESG disclosures by listed companies are an integral tool for investors who integrate ESG into their process. How are regulators and exchanges in Asia Pacific shaping their ESG disclosure regimes to meet investors' needs?
04 August 2019 | CFA Institute
Smart Sustainability: Examining Regional Appeal
Analysis of investors’ motivations for applying ESG considerations to smart beta, the factors that are causing regional differences in demand, and the outlook for smart sustainability, based on FTSE Russell's annual smart beta survey.
25 July 2019 | FTSE Russell
VIDEO: Powering ESG with Data: S&P DJI ESG Scores
A powerful new data set is redefining the ESG toolkit. S&P DJI’s Mona Naqvi and RobecoSAM’s Manjit Jus discuss what’s captured by S&P DJI ESG Scores, and how investors can use this data to inform their ESG decisions. (Video: 10 min.)
25 July 2019 | S&P Dow Jones Indices
Doing Well While Doing Good: Islamic and Sustainability Equity Investing
Investors do not have to pay a price for Islamic or sustainable investing. Combining Islamic and sustainability investing strategies offers more rewards, particularly during the economic boom, bullish equity markets and subprime crisis periods.
15 July 2019 | Wajahat Azmi, Adam Ng, Ginanjar Dewandaru, Ruslan Nagayev
Leading Global Capital Markets Towards a New Era
This policy review on ESG reporting for corporates and investors in Hong Kong highlights the city's potential for channelling global capital into ESG assets and leveraging finance to catalyse sustainable development.
28 June 2019 | Our Hong Kong Foundation | 1.0 CE
Benchmarking Corporate Effectiveness
The Drucker Institute's intangibles-focused model combines with S&P DJI's quality factor to create the S&P Drucker Institute Corporate Effectiveness Index, offering a differentiated approach to capturing companies that reinvest in stakeholders.
19 June 2019 | S&P Dow Jones Indices
Sustainability and Financial Performance in the Banking Sector
Sustainability is one of the most significant trends in the banking industry, which in turn plays an important role in sustainable development. How does banks' social and environmental performance impact their financial performance?
11 June 2019 | Dr Adam Ng, Dr Ginanjar Dewandaru, Ruslan Nagayev, Esma Nizam
ESG Integration in Asia Pacific: Markets, Practices, and Data
A new 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.
09 June 2019 | CFA Institute
Sustainable Factor Investing: Where Doing Well Meets Doing Good
Analysis of the impact of ESG integration on systematic factors in Australian equities shows that simultaneously exploiting ESG scores with quality, momentum and size characteristics outperforms standard factor strategies.
30 May 2019 | John Hua Fan, Lachlan Michalski
Why Pension Schemes Can Lead on Climate Change
The long-term investment time frames of pension schemes lead to innovative investment approaches to difficult issues, such as climate change. Merseyside Pension Fund's Owen Thorne explains the fund's approach.
29 May 2019 | FTSE Russell
Cultural Diversity in the Boardroom and Corporate Social Performance
Companies with more diverse boards of directors deliver better corporate social performance, as they satisfy the needs of broader groups of stakeholders.
21 May 2019 | Garel, A., Dodd, O., Frijns, B
BlueOrchard Impact Report 2019/2020
BlueOrchard, an impact investment management firm, explains how it measures the impact of its investments and how it demonstrates their effectiveness in achieving the Sustainable Development Goals.
16 May 2019 | BlueOrchard
Green Bonds: The State of the Market 2018
The new annual report focuses on labelled green bonds and uncovers the latest developments in this asset type on a global scale. It looks at trends in green bond issuance and identifies avenues for market growth.
07 May 2019 | Climate Bonds Initiative
Japan Green Finance: State of the Market 2018
A detailed overview of the Japanese green bond market analyses the developments in the private and public sector for industries with green growth prospects, including low carbon property, transport, forestry and paper and manufacturing.
07 May 2019 | Climate Bonds Initiative | 0.5 CE
CG Watch 2018: Hard Decisions
In the ninth Corporate Governance research report, ACGA in collaboration with CLSA analyse progress of CG reforms and transparency in 12 major APAC markets. The report also provides an overview of the ESG landscape in APAC.
7 May 2019 | Climate Bonds Initiative
ASEAN green financial instrument guide
Several financial instruments and mechanisms are available for public and private entities in ASEAN that look to fund green assets through equity, debt and partnerships. This step-by-step guide gives an overview of the financing process and its implementation.
18 April 2019 | Climate Bonds Initiative | 0.5 CE
Financing Low-Carbon Buildings and Energy Efficiency in the Green Bond Market
This report explores how the green bond market can be accessed to finance low-carbon buildings and energy efficiency upgrades, through issuance from property companies, financial institutions, local governments, and securitisation.
3 April 2019 | Climate Bonds Initiative
Synergistic Effects of CSR Practices on Firm Value: Evidence From Asia Pacific Emerging Markets
A study of companies in Asia Pacific emerging markets shows that firms engaging in all CSR dimensions including environmental, social, and governance practices can significantly add to the value of the firm.
19 March 2019 | Boonlert Jitmaneeroj
Dual-Class Shares: The Good, The Bad, and The Ugly
A Review of the Debate Surrounding Dual-Class Shares and Their Emergence in Asia Pacific
19 March 2019 | CFA Institute
About the Author(s)
Director: Scott Lee
Content manager, Editor: Piotr Zembrowski, CFA
Coordinator: Natalie Yiu