Digital library on sustainable finance
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As a global financial centre with a growing strategic interest in sustainable finance, and a country recognized as a leader in digital technologies and innovation, Switzerland is seeking an improved understanding of how digital finance can accelerate the greening of financial flows. UN Environment, with support from the Swiss Federal Office for the Environment (FOEN), undertook a stocktaking to map emerging green digital finance practices in Switzerland and globally in 2018. The paper provides options for a number of national and international actions that could be taken forward by different stakeholder groups.
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Green Digital Finance. Mapping Current Practice and Potential in Switzerland and Beyond - EN
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Much research has been done on the relationship between environmental, social and corporate governance (ESG) investing and performance in equity markets, but far less on its effect on the credit markets. This study into the behaviour of corporate bond portfolios showed that applying ESG factors resulted in a small but steady performance benefit and no evidence of a negative effect.
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This document contains answers to frequently asked questions regarding the work of the Technical Expert Group on Sustainable Finance (TEG) set up by the EU Commission, and the legislative proposals that frame its work.
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Technical Expert Group on Sustainable Finance – Frequently Asked Questions - EN
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This study explores the relationship between ESG and credit portfolio performance in the US dollar and euro investment grade credit markets, as well as the USD high yield credit market. The study found that favouring bond issuers with high ESG ratings can generate positive returns across markets, geographies and sectors.
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Institutional investors are increasingly realising that income inequality—the gap in income and wealth between the very affluent and the rest of society—has become one of the most noteworthy socioeconomic issues of our time. The report identifies three themes material to long-term investors and also suggests paths that investors might take to adopt a more balanced view of how to create value, manage system-level risks and maximize rewards while still operating profitably and enjoying competitive returns.
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Like all investors, sustainable investors juggle various motivations: improving investment performance, achieving an economic or a societal outcome, and investing in ways consistent with their values/beliefs. The challenge for sustainable investment professionals is to understand their clients’ motivations and then shape their expectations and investment strategy accordingly. Given this range of motivations and the diversity of environmental, social, and governance systems, it should not be surprising that there are many ways to approach investing sustainably.
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This book examines the impact of multinational enterprises (MNEs) on local economies, and presents selected case studies of MNEs operating in low income countries. By balancing external social and environmental costs against its corresponding benefits, the book demonstrates that MNEs can have a positive net-impact on local development if they build up social capital by embedding themselves in local economies and engaging responsibly with local stakeholders. By doing so MNEs contribute to inclusive growth, a central pillar of the UN Sustainable Development Goals.
In this context, the book challenges popular narratives in civil society and academia that frame foreign direct investment (FDI) merely as a threat to human rights and sustainable development. Moreover, it offers practical guidance for globally operating businesses seeking to establish progressive Corporate Social Responsibility (CSR) strategies of their own.
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Global Business in Local Culture. The Impact of Embedded Multinational Enterprises - EN
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Es gehört zu der treuhänderische Sorgfaltspflicht der mit der Verwaltung und Vermögensverwaltung einer Vorsorgeeinrichtung betrauten Person das beachten von relevanten Anlagechancen und -riskien zu identifizieren, bewerten und entsprechend zu berücksichtigen und diversifizieren. Hierzu gehören Klimarisiken und -chancen.
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Rechtsgutachten Klimarisiken in der Vermögensverwaltung bei Pensionskassen - DE
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This global study was commissioned for a second year by Schroders to analyse institutional investors and their attitudes towards sustainable investments, investment objectives and risk. Respondents represent a variety of institutions, including pension funds, foundations, endowments and sovereign wealth funds and manage approximately $24 trillion in assets. The 650 institutional respondents were sourced from 15 different countries.
The study found that while the outlook for incorporating sustainability in institutional portfolios is strong, sustainability currently plays a muted role in investment decision-making.
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This overview paper is the first in a body of work on an inevitable, rapid and forceful climate policy response, developed by the PRI in order to help institutional investors take action and implement processes to build resilience across investment portfolios.
The report series assesses the investment implications of a rapid and forceful policy response to close the gap to the Paris Agreement – what is referred to as an Inevitable Policy Response (IPR) – having recognized that the full impact of a delayed, but forceful policy response has not been widely debated or understood by many in the institutional investment community.
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This technical paper is part of a body of work on an inevitable, rapid and forceful climate policy response. It was developed by the PRI in order to help institutional investors take action and implement processes to build resilience across investment portfolios, in face of what is referred to as the Inevitable Policy Response (IPR).
This paper explains why a forceful climate policy response is inevitable and sets out the multiple forces building in the system that could come forward and trigger a rapid (but also late and costlier) policy suite by governments.
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This technical paper is part of a body of work on an inevitable, rapid and forceful climate policy response. It was developed by the PRI in order to help institutional investors take action and implement processes to build resilience across investment portfolios, in face of what is referred to as the Inevitable Policy Response (IPR).
Having considered the various potential drivers of an IPR, the paper further considers when the IPR could occur, what policy and technology pathways it might take, and how these pathways would affect the macroeconomy and risk-returns of financial assets.
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This technical paper is part of a body of work on an inevitable, rapid and forceful climate policy response. It was developed by the PRI in order to help institutional investors take action and implement processes to build resilience across investment portfolios, in face of what is referred to as the Inevitable Policy Response (IPR).
The paper presents a framework that institutional investors can utilise as part of their response to an IPR outcome. It will help prepare investors for an IPR and the implications it will have for further adapting and shifting SAA processes and portfolio construction techniques.
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The Inevitable Policy Response: Strategic Asset Allocation and Portfolio Construction - EN
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This technical paper is part of a body of work on an inevitable, rapid and forceful climate policy response. It was developed by the PRI in order to help institutional investors take action and implement processes to build resilience across investment portfolios, in face of what is referred to as the Inevitable Policy Response (IPR).
This paper pulls together the strands of the IPR, and sets out the issues to support a robust investor response ross the broader areas of portfolio management processes, including taking preparatory action to review governance arrangements, risk management processes, engagement with policy-makers, companies and service providers.
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This report reiterates the need for impact investors to raise and direct new capital to help meet the Sustainable Development Goals by 2030 and showcases how select impact investors are taking action.
The compendium of five case studies describes how the goals can be woven into the various stages of the investment cycle, as well as investors’ motivations for doing so, advice for other investors, and outlook for the industry.
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Financing the Sustainable Development Goals: Impact Investing in Action - EN
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This report analyzes the sustainable investing capabilites of 15 private banks. The analysis refined and extended a framework and questionnaire developed by the Center for Sustainable Finance and Private Wealth (CSP) for a pilot report in 2017.
The updated results show a diverse range of practices, but no single bank satisfying all the needs of private investors interested in SI. While the industry on average has well-established SI policies and targets, only few banks have top management paying attention to SI initiatives and even this is a rather recent phenomenon.
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Sustainable Investing Capabilites of Private Banks. Assessment of 15 European Private Banks - EN
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For the 2018 Q3 UBS Investor Watch report "Return on values", UBS conducted a large global study of High Net Worth Investors (HNWIs) on sustainable investing.
The reveals stark differences in the sustainable investing landscape. Emerging economies, such as China, Brazil and the U.A.E, indicate they have the highest rates of adoption of sustainable investing (60%, 53% and 53%), while investors in the U.S. and the U.K. lag behind (12% and 20%).
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UBS Investor Watch-3q-2018-global-report-en (pdf 180.1 kB)Summary
The Climate Bonds Taxonomy is a guide to climate aligned assets and projects. It is a tool for issuers, investors, governments and municipalities to help them understand what the key investments are that will deliver a low carbon economy.
The 2018 Guide incorporates a full update of both the content and the format. It is the most detailed climate aligned criteria available in the market and provides guidance to issuers, investors, governments and municipalities interested in addressing the negative impacts of climate change.
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The 2018 BlackRock Global Insurance Report summarises the key findings gained from surveying 372 senior executives in the insurance and reinsurance industry across 27 countries.
As well as assessing trends in investor sentiment and the outlook for investment strategy, the report explores how insurers increasingly take into account environmental, social and governance (ESG) considerations.
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In June 2017, the Task Force on Climate-related Financial Disclosures (TCFD) released its final recommendations, which provided a framework for companies to develop more effective climate-related financial disclosures through their existing reporting processes.
This is the first Status Report to the Financial Stability Board (FSB), providing an overview of current disclosure practices and their alignment with the core elements of the TCFD recommendations.
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Task Force on Climate-related Financial Disclosures: 2018 Status Report - EN
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This year's evaluation of the complmenta risk check-up of the Swiss pension funds contains a special feature chapter on the topic of sustainability.
The study covers 421 pension funds and an aggregated total assets of CHF 646.5 billion.
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Zur aktuellen Lage schweizerischer Pensionskassen: Complementa Risiko Check-up 2018 - DE
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Institutional investors today are sensitive regarding the tax strategies of the companies in which they invest. Following recent cases of aggressive tax optimization practices of certain companies, institutional investors consider these practices to be major financial and reputational risks for companies and their shareholders
This paper publishes five expectations and best-practices regarding corporate tax responsibility of listed companies.
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Ethos Engagement Paper: Corporate Tax Responsibility - DE
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To support the practical application of the OECD-FAO Guidance, in early 2018 the OECD and FAO launched an implementation pilot with over thirty companies and industry initiatives. The first stage of the pilot was a baseline survey to assess how companies and industry initiatives are implementing the OECD-FAO Guidance and other related international standards. This report presents the findings of the baseline assessment.
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In this second part of the Schroders Global Investor Study 2018 more than 22,000 investors in 30 countries were surveyed on the subject of sustainability. The study revealed amongst others that only one in four worldwide believes that sustainable investment comes at the expense of investment performance. This finding is an indication of a growing belief among investors that a decent return is not mutually exclusive with a desire to make a positive difference.
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This publication, Guidance and case studies for ESG integration: equities and fixed income, provides a global insight on the ESG integration techniques of leading practitioners across all regions of the world and includes case studies by analysts, portfolio managers, and investors, who share how they integrate ESG into their analysis and tell their stories of ESG integration.
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Guidance and Case Studies for ESG Integration: Equities and Fixed Income - EN
