April 2025

ESG investing: a global investor survey

By AXA Investment Managers We are committed to responsible investing and supporting the transition to sustainable economies. As long-term custodians of wealth, we strive to identify and back environmental, social and governance (ESG) leaders that can protect and grow client portfolios. In doing so, we believe that understanding customer perspectives is paramount, which is why we carried out this extensive study on individual views toward ESG investing across various markets, regions, and demographics.   Get the report here

March 2025

Japan’s $1.7 Trillion Pension Fund Offers New Backing to ESG

Japan’s $1.7 trillion Government Pension Investment Fund issued new guidelines backing sustainability-related investments as crucial to long-term returns. The fund, one of the world’s largest pensions, sees managing environmental and social issues as fundamental to its strategy, GPIF said Monday in a new policy document — rejecting the shift by other asset managers to downgrade or remove green commitments. Read more @

Considerations on ESG Investment Implementation

By Laura T. Starks Although interest in investing according to environmental, social, and corporate governance (ESG) standards is widespread, investment managers face a number of basic considerations with their portfolio choices. In this article, I give a high-level overview of these considerations within the context of the investor motivation: ESG values, ESG value, or both. These considerations include whether investors should exclude certain firms or use a positive tilt; how they could integrate ESG into an investment approach; the role...

U.S. Bill Seeks to Limit ESG Investments in Pension Funds

U.S. lawmakers target ESG in pensions: A U.S. bill previously rejected by Biden seeks to limit ESG factors in pension investments. InnoEnergy accounces €160B clean tech push: With focus on batteries, solar PV, and hydrogen, InnoEnergy mobilizes €160 billion for clean tech. Nvidia hit by China’s new energy efficiency rules: China’s stricter energy efficiency rules threaten chip sales. New PRI data reveals ESG investing remains strong: Report shows responsible investing is still growing despite political setbacks. U.S. lawmakers propose bill to curb ESG...

UK. Two-thirds of employers embrace responsible pensions; less than half have it as their default

More than two-thirds (69 per cent) of employers in the UK now offer a responsibly invested company pension, but less than half (44 per cent) have it as their default option, research from Scottish Widows has revealed. The firm said this put the onus on employees to take action if they want to switch. However, its Responsibly Invested Pensions report showed that nearly two-thirds (61 per cent) of employees had “no idea” how to change their default, highlighting a growing need for employers...

South Korea’s NPS pivots to sustainability, dials up risks in the portfolio

South Korea state pension fund National Pension Service (NPS) has delivered a new return record in 2024 driven by US tech stocks’ relentless rally, while its investments in global fixed income and alternatives also posted double-digit returns. This year, the world’s third-largest pension fund is gearing up to reduce coal investments to promote sustainability in the portfolio, and target riskier assets to ensure sustainability in funding. NPS announced a 15 per cent return on a money-weighted basis in 2024, which was...

February 2025

Hong Kong raises ESG disclosure standards for MPF managers

Hong Kong’s pension regulator said money managers would need to raise their disclosure standards on environment, social and governance (ESG) funds to help contributors understand their risk management and investment strategies The 12 participating fund managers, or trustees, including HSBC and Manulife, should improve the transparency levels on ESG-related reporting in their pension schemes, the Mandatory Provident Fund Schemes Authority (MPFA) said on Monday. The trustees must clearly state ESG strategies and focus on risk management in their brochures, as well...

Politics Before Pensions: How New ESG Rules Expose Public Pension System Vulnerabilities

By Danilo Risteski As some of the largest institutional investors in the United States, public pension funds wield considerable power over investment decisions. A recent trend highlights this extraordinary power: state pension funds have started exploiting their retirees’ pensions to force investment companies to invest in accordance with their respective states’ political priorities. Nowhere is this trend more obvious than in the environmental, social, and governance field. On one hand, states like Maine have passed legislation prohibiting public pension funds...

Asset owners ‘increasingly aware’ of risks of biodiversity loss, report says

Close to two-thirds of asset owners are now incorporating nature and biodiversity into their sustainability strategies whilst a further one-fifth intend to do so, according to a survey by Pensions for Purpose, the UK-based industry body. The report was based on interviews with 20 asset owners and managers across the UK, Europe, Asia-Pacific, North America and Latin America. These included the Bedfordshire Pension Fund, Cambridge Associates, PGGM, JANA Investment Advisers and the Wiltshire Pension Fund. Asset owners are “at a critical point in...

January 2025

Pensions investment outlook 2025: U.S. policy uncertainty clouds road ahead

By Investment Managers The coming year will likely be characterized by three main drivers: the U.S.’s politically driven polices, structural economic 1 The implicit yield curve based on the floating rates associated with an interest rate swap. weaknesses and political uncertainty in Europe, and China’s restructuring of its troubled property market. Overall, our forecasts suggest global growth looks set to continue its 2024 pace of 3.2% in 2025, before easing in 2026 to 2.9%. This outlook could be compounded by the implementation...