Digital library on sustainable finance
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This research, based on structured interviews with senior investment professionals, lawyers and policy makers, finds that failing to consider long-term investment value drivers, which include environmental, social and governance issues, in investment practice is a failure of fiduciary duty.
While many investors have made positive steps to incorporate sustainability risks into the way they deliver their fiduciary duty, the report argues that too many assets are still managed with a 20th century mindset, exposing savers and beneficiaries to the threat of value loss.
The Fiduciary Duty in the 21st Century programme has also produced a series of other publications, including Fiduciary Duty Country Roadmaps and specific research on investor duties and obligations in Asian markets. These reports can be accessed here.
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This report, in its second edition, and available for Germany, Austria and Switzerland. The Top 100 ESG Equity Fund Rating study measures and compares the portfolio quality of equity funds in terms of environmental, Social and Governance (ESG) criteria based on the ESG Investment Screener from yourSRI. Both "sustainable" classified Investment funds as well "conventional" mutual funds are analyzed and compared in terms of their ESG portfolio performance.
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TOP 100 - ESG Equity Fund Ratings - for Austria, Germany and Switzerland - EN
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This study commissioned by the FOEN analyses indirect greenhouse gas emissions linked to the Swiss equity fund market. The report outlines risks and costs involved in equity investments should stricter carbon pricing and regulations be put in place. The study also includes a closer look at 11 of the largest 25 pension funds in Switzerland and how future carbon pricing scenarios will affect beneficiaries.
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Kohlenstoffrisiken für den Finanzplatz Schweiz - DE
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The UNEP Inquiry into the Design of a Sustainable Financial System was established in January 2014. The Inquiry has looked in-depth at practice in over 15 countries - including Switzerland - and worked with central banks, environment ministries, international finance institutions as well as major banks, pension funds, insurance companies and stock exchanges to reach its findings. Five types of measures are presented: Enhancing market practice, harnessing the public balance sheet, directing finance through policy measures, transforming financial culture, upgrading system governance.
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Mikrofinanz hat sich als wichtiges Instrument zur Armutsbekämpfung längst etabliert. Führende öffentliche Institutionen wie die Weltbank nutzen Impact Investing zur Erreichung ihrer globalen Entwicklungsziele. Aber auch immer mehr institutionelle und private Investoren wollen von einer attraktiven Rendite und einer positiven sozialen Wirkkraft profitieren. Wie und warum funktioniert Mikrofinanz überhaupt? Was muss man als Investor wissen? Die Autoren dieses Buches, die Finanzspezialisten Peter Fanconi und Patrick Scheurle, erklären aufgrund ihrer Erfahrung mit über 20 Millionen Kleinstschuldnern detailliert Vorgehen und Methodik dieser besonderen Anlageklasse. Mikrofinanz macht alle zu Gewinnern: Kleinstunternehmer, Investoren und unsere Gesellschaft.
Das Buch ist bei NZZ Libro erhätlich.
Verlag Neue Zürcher Zeitung, 2015
ISBN: 978-3-03810-131-4
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This study provides insights into the opportunities of the circular economy and the business models enabling it. It will also provide a better understanding of how the circular economy changes the financial landscape.
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The Survey provides a detailed overview of key market trends about microfinance offshore investments. More than 80 MIVs have participated in the 9th annual survey which covers 96% of the total MIV market estimated at USD 10.4 billion as of December 2014. This survey allows microfinance investors and fund managers to benchmark themselves and stay informed about the market.
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2015 Symbiotics Microfinance Investment Vehicles (MIV) Survey - EN
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This report is the Prudential Regulation Authority's (PRA) response to the invitation of the Department for Environment, Food & Rural Affairs (UK) to complete a Climate Change Adaptation Report. It analyzes the climate risks from the standpoint to ensure the safety and soundness of firms and appropriate protection of policyholders. The PRA concludes that there is potential for climate change to present a substantial challenge to the business model of insurers. Possibly creating new opportunities within climate-change related business, but more importantly potentially reducing or eliminating the sector' appetite to provide insurance cover for specific sets of activities, assets or customers.
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The impact of climate change on the UK insurance sector A Climate Change Adaptation Report - EN
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ESG Magazine (launched September 2015) is the first dedicated print publication for sustainability in capital markets covering responsible investing, responsible banking, sustainable insurance, sustainable finance, impact investing, corporate sustainability and more.
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ESG Magazine: European Capital Markets Union-a game-changer for sustainable finance? - EN
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Standard & Poor's attempts to quantify the severity of the economic and ratings impact of rare but calamitous natural disasters. We focus on four perils: earthquakes, tropical storm and surge, winter storms, and floods. Based on a sample of 48 countries, simulations indicate that natural disasters, which can be expected once in every 250 years, can weaken sovereign ratings. The biggest ratings impact in the sample comes from earthquakes and tropical storms. One way to mitigate the economic and ratings impact of natural disasters is catastrophe insurance.
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Storm Alert: Natural Disasters Can Damage Sovereign Creditworthiness - EN
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Abstract: We analyze an extensive proprietary database of corporate social responsibility engagements with U.S. public companies from 1999-2009. Engagements address environmental, social, and governance concerns. Successful (unsuccessful) engagements are followed by positive (zero) abnormal returns. Companies with inferior governance and socially conscious institutional investors are more likely to be engaged. Success in engagements is more probable if the engaged firm has reputational concerns and higher capacity to implement changes. Collaboration among activists is instrumental in increasing the success rate of environmental/social engagements. After successful engagements, particularly on environmental/social issues, companies experience improved accounting performance and governance and increased institutional ownership.
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Financial intermediaries, via their financing activities, have important impacts on the environment and sustainable development. This paper highlights the historic development of regulating the financial sector in order to minimize environmental and social impacts, which started in the 1980s. It further indicates how hard and soft law instruments are currently aiming to push financial intermediaries to encourage sustainable development, by channeling their capital to environmentally or socially sound projects.
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The low-carbon economy provides significant opportunities for investments and growth. On the other side, the transition also represents significant financial risks, ranging from a reduced profitability of investee companies to loan defaults from the stranding assets. This report suggests a framework for carbon asset risk management, intending to help financial intermediaries and investors to think more consistently and systematically about climate risk.
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This research highlights the relevance of climate change to the asset management industry and beyond by estimating the value at risk (VaR) to 2100 as a result of climate change to the total global stock of manageable assets (the climate VaR). The VaR calculated in present value terms is US$ 4.2trn, however, it could be much higher if more extreme warming occurs. The authors conclude that although direct damage will be more localised, indirect impacts will affect the entire global economy, accordingly, asset managers will face significant challenges diversifying out of assets affected by climate change. Therefore, investors need to assess their climate-related risks and take steps to mitigate them.
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The cost of inaction: Recognising the value at risk from climate change - EN
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To provide an orientation framework for these and other questions, an interdisciplinary working group has developed the Swiss Foundation Code. It is a self-regulatory and application-oriented tool. First published in 2005 and supplemented with a commentary in 2009, it is now completely revised in its third edition. Its 3 principles and 29 recommendations can be applied to all types and sizes of foundations.
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Der Swiss Foundation Code ist aus der Stiftungsbranche entstanden und wird von SwissFoundations getragen. Es handelt sich um ein selbstregulatorisches und anwendungsorientiertes Werkzeug. Im Jahr 2005 erstmals erschienen und 2009 mit einem Kommentar ergänzt, liegt er nun vollständig überarbeitet in der dritten Ausgabe vor. Seine allgemein formulierten 3 Grundsätze und 29 reich kommentierten Empfehlungen lassen sich auf alle Arten und Grössenordnungen von Stiftungen anwenden.
Der Swiss Foundation Code ist auf Deutsch, Französisch und Englisch beim Helbling Lichtenhahn Verlag Basel erhältlich.
Helbing Lichtenhahn, 2015
ISBN:978-3-7190-3584-6
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Swiss Foundation Code 2015 - DE
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The authors use historical analysis of multiple datasets to examine several approaches for introducing ESG factors into the investment process and assess their efficacy from a portfolio management perspective. Using three approaches (negative screening, stand-alone ESG inputs for stock selection and combining ESG information with traditional investment factors) across U.S. and European stock markets, the authors demonstrate that incorporating ESG factors into investment decisions enhances risk-adjusted returns.
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This study and the tool lay the foundation for linking financial sector decisions to deforestation and forest degradation. It aims to help financial institutions better understand the dependencies of soft commodity producers on forest ecosystems, and how their businesses affect these ecosystems. This, in turn, allows financial institutions to gain more insight into their own risks and opportunities.
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This document introduces the new Impact Investing Benchmark providing performance data on a quarterly basis. Initial findings show that private impact investment funds – specifically private equity and venture capital funds – that pursue social impact objectives have recorded financial returns in line with a comparative universe of funds that only pursue financial returns.
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This study is an empirical analysis of an institutional investor's proxy voting decisions involving dual board nominees and the impact on portfolio value.
It was demonstrated that SBA equity value linked to proxy contest holdings increased by $572 million (or $5.3 million per vote) in the five years after a contest is announced, during the study's time frame from 2006 through 2014.
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Valuing the Vote 2015: The Impact of Proxy Voting on SBA Portfolio Holdings - EN
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This report contains an overview of the current approaches and practices of 12 major European banks regarding the integration of environmental and social factors in commercial and investment banking activities.
The survey shows that while the identification and control of environmental and social issues in the core banking practices is becoming more common, the integration of sustainability criteria in lending and investment banking activities still requires significant improvement if banks aim to protect the value of their assets in the short and longer term.
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Ready or not? An assessment of sustainability integration in the European banking sector - EN
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This report identifies and explains certain barriers (specifically the often mandated local sourcing of jobs, components, or costs) that exist within the solar PV and wind-energy industry and provides policy makers with evidence to guide their decisions when designing clean-energy support policies.
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Overcoming Barriers to International Investment in Clean Energy - EN
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This report, focused on the BRICS countries, outlines what financial market regulations these emerging market policy-makers have introduced or are considering introducing to manage and mitigate environmental and social risks of investments.
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Financial market regulation for sustainable development in the BRICS countries - EN
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This study helps address the following investor questions:
- How big a risk/return impact could climate change have on a portfolio, and when might that happen?
- What are the key downside risks and upside opportunities, and how do investors manage these considerations to fit within their current investment process?
- What plan of action can ensure an investor is best positioned for resilience to climate change?
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