January 2022

ESG Investing Is Not Sustainable Investing

There’s a lot of confusion in the marketplace regarding ESG (Environmental, Social, Governance) and Sustainable, sometimes known as SRI (Sustainable, Responsible, and Impact) investing. Many people think the two terms are interchangeable – I’m here to tell you that they aren’t. Blackrock BLK +0.4%, Vanguard, and other big investment houses are simply capitalizing on the growing interest in values-aligned investing. In fact, they have invested a significant amount of money in marketing ESG to have you believe that they are...

Avances y retos sobre la gestión corporativa en asuntos ASG en Latinoamérica

Por KPMG Desde su primera edición en 1993, el informe revela que desde entonces han ocurrido cambios drásticos en cuanto a la relevancia que han cobrado los aspectos ASG (ambientales, sociales y de gobierno corporativo) para las compañías en el contexto actual. Además de los resultados globales, presentamos un acercamiento especial al contexto latinoamericano, incluyendo información de Argentina, Brasil, Colombia, Costa Rica, Ecuador, México, Panamá y Perú. El documento entrega una visión detallada de las tendencias globales y regionales en sostenibilidad, a...

December 2021

México. Las Afores participarán en proyectos ASG

México. Las Afores participarán en proyectos ASG

A partir del próximo 1 de enero, todos los ahorros para el retiro de los trabajadores mexicanos serán invertidos con un mayor enfoque en proyectos que tengan un impacto positivo en lo ambiental, social y gobierno corporativo (ASG). Las Administradoras de Fondos para el Retiro (Afores) serán los primeros inversionistas institucionales en México que a partir del 2022 estarán regulados o de alguna manera obligados a invertir en empresas y proyectos que cumplan con la certificación ASG. Estas administradoras son las...

ETF investors want impact with ESG allocations, survey finds

Investors are aligning themselves with the United Nations Sustainable Development Goals (SDGs) when allocating to ESG, according to a survey conducted by ETF Stream and Amundi. The survey of 105 investors across Europe, which featured in a report of initial findings titled ETF Scan: The Big Picture, found 35% of respondents said they want ESG exposure linked to either impact or the 17 SDGs, the most across all responses. This highlights the use case for thematic ETFs which can offer targeted...

Green Finance: A Shift Towards Sustainable Economic Growth

By Bazgha Khan & Noria Farooqui Green finance refers to the financial arrangements that are specific to the utilization for projects that are environmentally sustainable or projects that adopt the aspects of global climate change. It’s to extend the level of financial flows from banking, micro-credit, insurance and investment, the public, private and not-for-profit sectors to sustainable development priorities. United Nations Environment Program (UNEP) has been working to align financial systems to the 2030 sustainable development agenda to direct financial flows...

The Elevated Economy: Why Investors And Companies Can’t Ignore ESG

By Richard Steel Over time, public companies will be forced to take stances on environmental, social and governance issues, pressured by shareholders, public opinion, clients and customers. I believe the same will be true with pension funds and endowments. Just look at the activism around the Harvard endowment and the world’s largest sovereign wealth fund, which manages Norway’s assets and is dropping $13 billion of fossil fuel investments. Not only companies but also consumers are embracing — even demanding — an...

EE.UU. Nueva York y su giro verde: adiós de los fondos de pensiones a empresas de combustibles fósiles

Nueva York ha decidido dar un paso más en su lucha por una economía más verde. La ciudad más grande de Estados Unidos anunció este miércoles que retira la inversión de sus fondos de pensiones en activos por valor 3.000 millones de dólares procedentes de compañías relacionadas con combustibles fósiles. Esta acción, considerada "una de las más importantes del mundo", pretende encarar los riesgos financieros y medioambientales que estas reservas de combustibles fósiles representan para los fondos y para...

UK. Experts predict busy 2022 for pensions industry

Pension professionals have predicted a busy and challenging year for the pensions sector in 2022, with many issues continuing into the New Year alongside new initiatives for the industry to contend with. With hope that the pandemic will subside, many commentators pointed to the increased focus on environmental, social and governance (ESG) factors in 2022. “2022 will see the continued rise in the incorporation of key ESG issues, including but not limited to climate change, into defined contribution (DC) investment design,”...

US. 3 NYC pension funds divest $3 billion from fossil fuels

Three of five pension funds in the $266.7 billion New York City Retirement Systems have divested about $3 billion in fossil fuel company holdings, New York City Comptroller Scott Stringer announced Wednesday. The divestment "is proof positive that environmental and fiscal responsibility go hand-in-hand," Mr. Stringer, the fiduciary of the five pension funds in the city system, said in a news release. "New York City is leading the way toward a clean, green and sustainable economy, and the impacts of...

UK. Enthusiasm for green pensions fails to translate

Although most savers say they want their pension to be invested responsibly, very few people auto enrolled into workplace schemes have moved their investments to sustainable funds. That is according to research by Barnett Waddingham which found one in five savers (20%) said they thought ESG funds should be the default option for workplace pensions, regardless of return. A further 26% said they thought this should be the case so long as the return is the same as a non-ESG fund. Meanwhile,...