ESG
Once considered a niche area, appetite for environmental, social and governance (ESG) funds has never been higher. According to some estimates, ESG funds are set to outnumber conventional ones by 2025. However, evaluating an investment from an ESG standpoint is fraught with difficulty – from defining the ESG criteria through to understanding the true societal and environmental impact of individual assets. Risk.net’s coverage looks behind the curtain at this rapidly evolving market, discusses the current challenges and opportunities for providers and investors, and evaluates the latest tools and methodologies available to manage ESG risk.
This section features predominantly third-party content. Read more about our policy on this content here.
In search of a global ESG risk and reporting framework
Short summary: Banks are turning towards technology to improve ESG reporting and reduce related financial risks
ESG: the new risk factor in your portfolio
Risk officers, managers and quants at leading buy-side firms are experimenting with ESG as an ‘alpha enhancement’ to day-to-day risk management, to stay ahead of the pack and boost profit-and-loss margins
Maximising value from ESG data
Bloomberg’s Brad Foster discusses the latest trends in environmental, social and corporate governance (ESG) data usage by capital markets firms
Rising renewables: navigating the increasingly challenging US power markets
Renewable energy is the fastest-growing energy source in the US and new investment is pouring in from government and corporates keen to meet environmental, social and governance standards. For energy market participants this presents major incentives to…
ESG and climate risk: special report 2022
This Risk.net Environmental, social and governance (ESG) and climate risk special report brings together a collection of articles that explore the latest issues in assessing and managing ESG and climate risk. The tide is turning, with many more firms now…
Impact investing: trends and best practices
A panel of investment specialists discusses the rapidly expanding world of environment, social and governance (ESG) investing, with a particular focus on climate. They discuss best practice for achieving impact investing, their expectations on climate…
Carbon markets: what to watch
As carbon markets take on increased importance, Victoria White, senior associate at Allen & Overy, discusses the outlook for carbon trading, highlighting the key developments shaping these markets
Boosting the ESG exposure of a low‑risk portfolio
Nikolay Radev, senior quantitative researcher at FactSet, discusses the limitations of previous environmental, social and governance (ESG) measurement, and proposes a new approach to optimising ESG exposure in minimum tail-risk (MTR) portfolio…
Operationalising ESG: an opportunity for risk managers
As calls to accelerate the growth of green and sustainable finance become louder, companies are under pressure from regulators and social media alike to implement comprehensive ESG plans
Top 5 trends to watch in 2022
1. Individual investor initiative 2. ESG investing 3. Hedging China risk 4. Digitisation and cryptocurrency 5. Futurisation
Trends shaping investment in Asia
As several new trends impact investment in Asia, Randolf Roth and Mezhgan Qabool discuss how Eurex is catering to the evolving needs of market participants and what it sees happening next
Sustainable finance, Ibor transition and China bond investment take centre stage
Sustainable finance, moving to risk-free rates, and the further liberalisation of China’s capital markets will all remain a focus for Crédit Agricole CIB in Asia-Pacific
ESG strategies: special report 2021
This Risk.net special report comprises a series of articles that reflect on the latest initiatives for consistent standardised global frameworks for measuring ESG, consider the methodologies investors are using to make measurable progress for people and…
ESG strategy, investment and risk
Sponsored Q&A
Climate risk takes scenario analysis and stress-testing to the next level
Financial institutions are facing several challenges as they prepare for the transition risk journey that will see them evaluating their existing risk and finance solutions. Ludwig Dickens, client advisor, risk business consulting, at SAS discusses what…
Did COP26 deliver?
Jaspreet Duhra, S&P Dow Jones Indices (S&P DJI), explores the opportunities that came out of the 2021 UN Climate Change Conference in Glasgow, and why S&P DJI will continue to produce rules-based indices that align with a 1.5° Celsius scenario
Building resilience into ESG risk management
Risk and resilience continue to play an important role in the navigation of an increasingly uncertain world. Fusion Risk Management explores why it is equally crucial for technology to support organisations in addressing pertinent environmental, social…
Measuring climate risk: what’s possible now
Governmental and societal pressure on banks and asset managers to help manage climate risk and disclose progress toward a sustainable future is high. Institutions are working to quantify the impact of climate change on their balance sheets and want to…
Next-generation ESG derivatives
Amid increasing concern for the future of the planet, the demand for environmental, social and governance (ESG) factors has grown significantly. As such, global investors are looking for tools to support the development of sustainable portfolios. ESG…
China’s first global multi-asset index embedding ESG criteria
China Minsheng Bank explores its joint initiative alongside Societe Generale – the Minsheng multi-asset ESG global allocation index – and its objective to provide investors across several regions with balanced returns from assets with ESG criteria…
ESG derivatives – From equity to fixed income and beyond
In a Risk.net webinar convened in association with Eurex, panellists discuss the rising demand for and their own experiences of using and developing ESG derivatives, their views on future developments and the challenges of growing the market