ESG

Climate-bond cold shoulder gets harder to justify

10 December 2019

Even though green bonds perform well and can weather economic cycles better than regular issues, they’re still constrained by limited demand. Poor transparency and a comparability have been a turnoff, but a new Nasdaq tool means even that argument no longer holds much water.

Green “Minsky moment” cannot come soon enough

9 December 2019

Regulators have already flagged the risks of a sudden repricing of asset values when climate policies kick in. New United Nations-supported research attempts to quantify the impact. If politicians wait until 2025 to grasp the nettle, the hit to equity markets will be more severe.

ESG rating sellers unite from a position of fear

5 December 2019

S&P Global and Moody’s have recently bought suppliers of environmental, social and governance data. That highlights ESG’s increasing importance. But the dealmaking also reflects rating providers’ need to tool up and improve often flawed metrics before someone eats their lunch.

TCI plays outrider to Mark Carney’s climate drive

2 December 2019

Chris Hohn’s hedge fund plans to penalise directors at companies who don’t publish climate change data. If others follow suit, it could boost the Bank of England governor’s push for transparency. What’s less clear is whether greater disclosure delivers investment rewards.

Action speaks louder than words on ESG issues

28 November 2019

Big index funds justify holding stocks with poor environmental, social and governance profiles by pledging to engage with their bosses. New research suggests this isn’t working. While there’s merit in naming and shaming, pension funds voting with their feet is more effective.