Investors in ESG funds will end up with more exposure to Saudi Arabia than a passive investor, highlighting complexities in responsible investing. The article written by James Mackintosh on the WSJ of November 26, 2019 analyzes the difficult choices behind the selection of bonds of better emerging-market...
ESG Rating, Senza categoria / 25.11.2019
MSCI arms all investors with ESG ratings of 2,800 top firms
A growing number of investors across the world are factoring ESG risk into their decision-making, in the belief that companies with a good rating will be better-run and produce stronger returns with lower risk. MSCI, which awards companies an ESG rating based on 37 criteria such...
ESG Rating / 21.11.2019
S&P acquires ESG ratings arm of RobecoSAM
As of November 21, 2019 S&P Global announced it will acquire the ESG Ratings Business from RobecoSAM which consists of two units: one dealing with SAM CSA which issues ESG ratings and a second providing in-depth reports to companies for comparing relative performance relative. SAM...
Climate change, ESG, Senza categoria / 05.11.2019
Progress toward sustainable development is seriously off-track
Hunger is rising, half the world lacks basic education and healthcare, women face discrimination. This are are huge systemic risks. According to the secretary-general of the United Nations, Antònio Guterres, in an article published on the FT of November 4, 2019, in a time of...
ESG Rating / 01.10.2019
Thomson Reuters closes deal with Blackstone
Thomson Reuters Corp announced on Monday it had completed the sale of a majority stake (around 55%) in its Financial & Risk unit to private equity firm Blackstone Group LP. The unit will now be rebranded as Refinitiv. Investors also announced that Refinitiv will invest in multiple...
ESG, Financial Institutions / 25.09.2019
Hedge Funds Putting More Focus on ESG
Hedge funds are starting to face the increasing interest in responsible investing. According to the survey by BarclayHedge, a division of technology firm Backstop Solutions, four out of ten hedge fund managers now consider environmental, social and governance (ESG) ratings in their capital allocation decision. The reason...
Climate change, ESG Rating, Financial Institutions / 20.09.2019
The case for closer oversight of the ESG fund industry
"Green-friendly ETFs hold shares in groups with coal operations" said Financial Times on September 19, 2019. The case for closer oversight of the ESG fund industry is the conclusion of the analysis conducted by the environmental research group InfluenceMap on a basket of 118 climate-themed funds listed...
As the Financial Times pointed out, a vast amount of deals occurred recently that involved ESG rating agencies: the demand for sustainability and corporate governance data has risen among investors and regulators. Today, Financial Times announced that two of the three main credit rating agencies...
MSCI Inc. acquired a 100% stake in data analytics firm Carbon Delta AG through its subsidiary MSCI Barra Sarl. "Founded in 2015, Carbon Delta is a global leader for climate change scenario analysis. Together, MSCI and Carbon Delta will create an extensive climate risk assessment and...
Corporate Governance, ESG / 07.09.2019
Does capitalism need saving from itself?
Gillian Tett, chair of the editorial board for the Financial Times, reflects on "why bosses are buying into the idea of a purpose beyond profit", after decades in which shareholder interests have dominated the boardroom and shareholder value has been the 'mantra' in financial markets. She interviews...
The asset management giant Vanguard has ejected 29 stocks from the funds created to invest in companies with strong environmental, social and governance records. The news published by the Financial Times as of August 13, 2019 reports Vanguard statement after the event: “the companies were included...
ESG Rating / 01.08.2019
LSE acquisition of Refinitiv
London Stock Exchange ("LSE") signed a deal with investment funds affiliated with Blackstone and Thomson Reuters to acquire Refinitiv, financial data and trading platforms provider. Refinitiv shareholders will acquire a stake of approximately 37 per cent economic interest in LSEG and less than 30 per cent of the total voting rights...
ESG Rating / 22.07.2019
ESMA advises against explicit ESG analysis mandate for credit rating agencies
“Credit rating agencies should not be explicitly required to consider environmental, social and corporate governance (ESG) factors when assessing issuers’ creditworthiness, according to the EU financial markets watchdog.” This is what IPE claims right after ESMA (European Securities and Markets Authority) decision of excluding the explicit...
A US$ 500m ETF run by Vanguard that claims in its marketing material to specifically exclude "fossil fuel" stocks invest in several companies in the oil and gas industry, including oil services company Schlumberger, pipeline company Kinder Morgan and crude oil refiner Marathon Petroleum, as of...