Carbon prices will have to increase exponentially over the coming decades if we are to meet the minimum target of the Paris Climate Accords.
A growing number of institutional investors in Europe are embedding ESG analysis in their investment processes in response to regulatory pressure, consumer demand and a rising appetite for new sources of investment signals.
Investors can now measure the climate impact of the funds they invest in, using “the world’s first climate impact rating for funds”.
The emerging market equity specialist East Capital has launched its first ever global emerging markets fund. It’s also the company’s first fund that is explicitly named as ‘sustainable’.
Fidelity has launched its first ever active ESG fund: the Fidelity FIRST – ESG All Country World Fund. It follows the launch of two ESG index funds in its home market, the US, last month.
US president Donald Trump’s decision to withdraw from the Paris Climate Agreement may result in securities issued by the US government becoming ineligible for ESG investors, experts say. But ESG fund managers are reluctant to disengage.
Investors have said that president Trump’s decision to turn his back on the Paris Climate Agreement ignores the economic benefits that renewable energy brings.
Investment managers have played down Donald Trump’s decision to pull the US out of the Paris climate agreement, saying the effect on companies will be minimal.
German investors are laggards when it comes to sustainable investing compared to most of their peers in surrounding counties. They are catching up, but still have some work to do.
Investing in companies that have strong sustainability credentials can deliver alpha, says BMO Asset Management’s Nick Henderson.