Digital library on sustainable finance
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After the 2015 Paris Agreement, this paper takes stick of the wide-ranging implications for fiscal, financial and macroeconomic policies coming to grips with climate change. Thereby issues such as the carbon price, climate finance, disclosure of carbon footprints, or the implications on the financial stability are discussed.
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After Paris: Fiscal, Macroeconomic, and Financial Implications of Climate Change - EN
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Section 4.2.5 (Action area 5 – Economic and financial system) was adapted to include two goals (goal 5.4 and 5.5) specifically related to sustainability and finance.
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Sustainable Development Strategy 2016-2019 - DE
Sustainable Development Strategy 2016-2019 - FR
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Abstract: The search for a relation between environmental, social, and governance (ESG) criteria and corporate financial performance (CFP) can be traced back to the beginning of the 1970s. This study extracts all provided primary and secondary data of previous academic review studies. Through doing this, the study combines the findings of about 2200 individual studies. Hence, this study is by far the most exhaustive overview of academic research on this topic and allows for generalizable statements. The results show that the business case for ESG investing is empirically very well founded. Roughly 90% of studies find a nonnegative ESG–CFP relation. More importantly, the large majority of studies reports positive findings. We highlight that the positive ESG impact on CFP appears stable over time. Promising results are obtained when differentiating for portfolio and nonportfolio studies, regions, and young asset classes for ESG investing such as emerging markets, corporate bonds, and green real estate.
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ESG and financial performance: aggregated evidence from more than 2000 empirical studies - EN
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Institutional Investors get increasingly active on climate change issues. The Montreal Pledge and the Portfolio Decarbonization Coalition are two examples. This report reviews strategies and metrics for investors seeking to reduce GHG emissions and aid transition towards a low-carbon economy through investment decisions.
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Climate Strategies and Metrics Exploring Options for Institutional Investors - EN
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This issue is dedicated to the theme of fossil fuels, 'unburnable carbon' and 'stranded assets'. Read about how the financial industry is reacting to the risks of climate change and fossil fuel linked investments.
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This guidance document by the European banking Authority (EBA) lays out sound remuneration policies to all staff and specific requirements for the variable remuneration of staff whose professional activities have a material impact on the institutions’ risk profile. Articles 74 and 75 of Directive 2013/36/EU (CRD) mandate the EBA to develop guidelines on both remuneration policies for all staff as part of institutions’ internal governance arrangements and remuneration policies for identified staff.
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Novethic has published its 8th survey on responsible investment practices among European asset owners, with the support of Degroof Petercam in 13 countries. The results show that climate is a priority for 53% of the 181 institutions surveyed, together holding € 7,367 bn in assets; very few, however, have decided to exclude fossil fuels from their investments so far.
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In light of the momentum around discussions on climate risks and its impacts on assets (i.e. carbon bubble or stranded assets), this report analyzes the short-term risks stemming from how investors react to climate-related information. Thereby the study indicates the vulnerability and resiliency of different portfolio types to climate-change related risks. This allows investors to start reflecting on how to offset potential losses and invest in assets less likely to be affected by climate risks.
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Unhedgeable risk How climate change sentiment impacts investment - EN
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This report complements the global, annually published aggregate report on microfinance investment vehicles (MIVs) that Symbiotics has been producing since 2007, and shows disaggregated data for the Swiss subset of global MIVs. It follows a first report on this subset published by Symbiotics in collaboration with the Swiss Development Agency (SDC) in December 2011.
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This guide helps connect the themes of carbon footprint analysis with investment objectives, such as, minimising risk and meeting climate targets. With a growing number of Carbon footprint services available, different investors may require additional insights into the various methodologies. The ‘Carbon Compass’ reviews each methodology and answers the most commonly-asked questions simply and practically.
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The Natural Capital Declaration aims to develop evidence to evaluate natural capital dependencies and impacts as material risk for financial institutions. The first part of this study provides arguments for a business case for banks and asset managers to incorporate natural capital factors in their lending and investment decision-making processes. The second part provides an overviews of 36 financial institutions' existing capabilities to manage natural capital risk. The report concludes that there is a discrepancy between the acknowledgment of the importance of the natural capital risks, and the effective implementation in the investment and lending processes.
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Towards including natural resource risks in cost of capital State of play and the way forward - EN
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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
