From niche to mainstream: how ESG principles are reshaping investing today
|
|
- Alexandra Shelton
- 6 years ago
- Views:
Transcription
1 June 2016 From niche to mainstream: how ESG principles are reshaping investing today Leo M. Zerilli, CIMA Head of Investments John Hancock Investments As ESG standards become more uniform and as corporate performance along those metrics becomes more transparent and widely available, we believe demand for investment vehicles that incorporate ESG principles will only increase. Key takeaways Environmental, social, and governance (ESG) investing is an increasingly mainstream way of incorporating nonfinancial metrics into the investment decision-making process. ESG investing has evolved dramatically over the years, from a simple screening process that eliminated certain industries to one that seeks to identify companies that are leaders in sustainable and responsible business practices. ESG investing has reached a tipping point since its early days, so that broad ESG indexes today have kept pace with the broader market. The number of funds and assets dedicated to ESG-style investments has grown sharply in recent years, reflecting strong demand from a range of investors, especially among institutions, high net worth investors, younger investors, and women. Executive summary For decades, sustainable investing was considered a niche market, one that offered portfolios that excluded industries such as tobacco, firearms, alcohol, and gambling. The cost to investors of aligning their portfolios with their personal values was high, as these products often struggled to keep pace with traditional investment strategies. As ESG investing matured, however, that trade-off essentially disappeared: Today, many professional investors are using ESG metrics as a means to manage portfolio risk, identify quality management teams with sustainable business practices, and, in some cases, seek to positively influence corporate behavior.
2 A closer look at the history of ESG investing Sustainable investing has been around for centuries, tracing its roots back to faith-based investments. Today, it is one of the fastest-growing segments of the investment universe, with myriad ways for investors to align their portfolios with their personal values. While there are many labels used to describe this style of investing, the most encompassing is ESG investing, the three broad areas managers focus on when constructing portfolios of sustainable or socially responsible companies. ESG investing as we know it today started in 1971 with the launch of the first publicly available mutual fund in the United States to use nonfinancial criteria as well as traditional fundamental analysis in the investment decision-making process. The general goal of that fund, like many of its successors, was to make a positive impact on society and the environment while pursuing investment returns that were comparable to the broad market. ESG investing in the United States was something of a niche market until the early 2000s, when investors and asset managers began to acknowledge that ESG issues, which were typically not included in traditional financial analysis, had the potential to materially affect corporate performance over the long run and, therefore, returns to investors. Growth in recent years has been robust: Over the past two decades, ESG investing in the United States has grown from 55 funds to more than 900, representing more than $4 trillion in assets and a diversity of approaches. While the United States has been one of the fastest-growing regions in recent years, the rest of the world has recognized the value in ESG investing for some time. In 2014, global assets dedicated to sustainable investing totaled more than $21 trillion. 1 The U.S. ESG market is experiencing a rapid acceleration in funds and assets Investment funds incorporating ESG factors $5,000 4,306 4,000 Total net assets (in billions) 3,000 2,000 1,000 0 Year , Number of funds Source: Report on US Sustainable, Responsible and Impact Investing Trends 2014, The Forum for Sustainable and Responsible Investment, Please note that ESG funds include mutual funds, variable annuity funds, closed-end funds, exchange-traded funds, alternative investment funds, and other pooled products, but exclude separate account vehicles and community investing institutions. Past performance does not guarantee future results. 2
3 June 2016 The evolution of the ESG investment process During the early days of ESG investing in the 1970s, portfolios were primarily built around exclusionary screens. Companies that engaged in questionable environmental practices or that had a detrimental impact on society tobacco companies or weapons manufacturers, for example were removed from a portfolio manager s investment universe. The companies that remained were screened and weighted against fundamental financial metrics in much the same way that a traditional portfolio would be constructed. Over the years, as ESG investing gained more of a foothold and pressure increased for corporations to be increasingly transparent about their social and environmental impact, asset managers began adding a second, positive screen to their investment processes. Rather than simply excluding companies that scored low on ESG metrics, managers were able to begin tilting portfolios in favor of companies that were performing well on ESG criteria. Increased transparency surrounding ESG metrics A kind of tipping point in ESG investing occurred in 2005 when the United Nations Environment Programme Finance Initiative (UNEP FI) developed a legal framework for the integration of ESG issues into the mainstream financial system. With more than 200 members globally, one of the key tenets of the UNEP FI is that it is not only permissible for investment companies to integrate ESG issues into investment analysis, but it is arguably their fiduciary duty to do so. Along those same lines, in 2010, researchers at the Initiative for Responsible Investment at Harvard University set out to develop and test a methodology for identifying material industry-specific ESG issues and their associated performance indicators. The strong positive reception to that research led to the creation of it is not only permissible for investment companies to integrate ESG issues into investment analysis, but it is arguably their fiduciary duty to do so. ESG investing deals with a wide range of issues Environmental issues Social issues Governance issues Climate change and carbon emissions Product safety Board composition Air and water pollution Data protection and privacy Audit committee structure Energy efficiency Gender and diversity Executive compensation Water scarcity Employee engagement Lobbying Waste management Supply chain management Political contributions Deforestation Labor standards Bribery Biodiversity Community relations Corruption Source: CFA Institute,
4 the independent nonprofit Sustainability Accounting Standards Board in 2011, which today is a leader in corporate sustainability reporting standards. Shareholder advocacy, public policy, and impact investing The evolution of ESG investing didn t stop with positive screening: Many ESG investors have moved beyond portfolio construction to leverage their position as stockholders in order to influence public policy and corporate behavior. There are a number of tools available within this kind of corporate engagement, including phone calls, written correspondence, in-person meetings, and site visits. By influencing legislation and regulation, asset managers can often influence positive change across entire industries. For example, the ESG investment industry was very active in promoting the Dodd-Frank regulations that addressed financial reform, and has also advocated for stronger environmental regulations, which has helped ensure that companies report greenhouse gas emissions and disclose risks related to climate change. Debunking myths about ESG investing Despite the rapid growth of ESG investing, there are a number of major misconceptions that have consistently surfaced. Myth #1: ESG investing is still a fringe approach While this may have been true 20 years ago when ESG investing had attracted only $12 billion in U.S. assets, the growth of the practice in recent years has firmly established ESG investment principles in the financial industry. 2 In fact, in a recent survey of investment professionals, 73% of investors consider ESG factors in their investment decisions. 3 Why are so many investment professionals integrating ESG factors into their company analysis? The top reason is because investors believe it helps them to identify and manage investment risks. In fact, a survey of investment professionals showed that only 7% of respondents said they look at ESG factors because regulation requires it. 3 Many ESG investors have moved beyond portfolio construction to leverage their position as stockholders in order to influence public policy and corporate behavior. Why do investment professionals consider ESG issues? Survey response Respondents (%) To help manage investment risks 63 Clients/investors demand it 44 ESG performance is a proxy for management quality 38 It s my fiduciary duty 37 To help identify investment opportunities 37 My firm derives reputational benefit 30 Regulation requires it 7 Other 5 Source: Environmental, Social, and Governance Issues in Investing, CFA Institute,
5 June 2016 By rewarding companies that score well on ESG issues or by engaging directly with companies through shareholder advocacy investors have helped shape and improve corporate behavior worldwide. Myth #2: ESG investors must sacrifice return to make positive change ESG investing has often been stigmatized by the assumption that investors are forced to concede returns to create a positive impact. The impression of assumed underperformance came from the early days of ESG investing and was, in general, well deserved. Investment strategies that used only negative screening to exclude companies or industries often sacrificed diversification to comply with their self-imposed limitations. The resulting portfolios may have been socially responsible, but they were also less diversified and carried higher risks. It s also true that ESG principles were generally less important to many corporate management teams than they are today. In the 1970s and 1980s, an ESG portfolio based on exclusionary screens would have had a relatively small investment universe to draw on. But this is not the case today. By rewarding companies that score well on ESG issues or by engaging directly with companies through shareholder advocacy investors have helped shape and improve corporate behavior worldwide. One example is the percentage of business executives who recognize sustainable practices as being important to their shareholders. This figure, which stood at just 22% in 2009, is now roughly 60%, according to a 2016 MIT study. 4 In fact, researchers at the University of Oxford analyzed 200 studies on the sustainability practices of companies across a broad range of industries and found that: 80% of the studies showed that the stock performance of companies is positively influenced by good sustainability practices 88% of the studies showed that strong ESG performance correlates with better operating performance of companies 90% of the studies on the cost of capital showed that sound sustainability standards lower companies cost 5 ESG returns have kept pace with the broad stock market Growth of $10,000 ( ) $25,000 20,000 n S&P 500 Index n MSCI KLD 400 Social Index 15,000 10,000 5, Source: MSCI, Standard & Poor s, The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States. The MSCI KLD 400 Social Index is a market-capitalization-weighted index of 400 U.S. securities that provides exposure to companies with outstanding ESG ratings and excludes companies whose products have negative social or environmental impacts. It is not possible to invest directly in an index. Past performance does not guarantee future results. 5
6 Myth #3: the market for ESG funds is small and insignificant Despite the growth of the ESG marketplace over the past decade, there continues to be a misconception that the type of investor interested in ESG strategies is somehow outside the mainstream, that ESG funds are catering to the same group that would label themselves as political or cultural activists. In reality, that stereotype couldn t be further from the truth. Institutional investors, including pension funds and insurance companies, have long been at the vanguard of incorporating ESG principles into their investment practices. According to US SIF, institutional investors in the United States now apply ESG criteria to investment decisions for aggregate assets of more than $4 trillion, which represents a 77% increase since institutional investors in the United States now apply ESG criteria to investment decisions for aggregate assets of more than $4 trillion, which represents a 77% increase since Demand from individual investors also has the potential to be strong. According to one study, 86% of high net worth investors consider giving back an important or essential part of a life well lived. 6 When asked whether social or environmental impact is important to their investment decisions, 85% of millennials, 70% of Generation Xers, and 49% of baby boomers agreed that it was. This desire for affecting positive change was especially pronounced among women; a full 71% of those surveyed said the impact their investments had on the world mattered to them. The bottom line is that the demographics most interested in ESG principles are those that currently hold investable assets institutions and high net worth individuals or those that increasingly will women, Gen Xers, and millennials. Far from being a minority segment of the investment community, ESG strategies appeal directly to those institutions and individuals at the core of the investing world. ESG principles are important to a range of investors Percentage of respondents who agree that social and environmental issues are important to investment decisions 100% By gender By demographic Nearly 6 in 10 investors consider a company s social and environmental impact important to their investment decisions. That figure rises dramatically among women and younger investors Male Female Millennials Generation X Baby boomers Age 69+ Source: 2015 U.S. Trust Insights on Wealth and Worth Survey, U.S. Trust,
7 June 2016 Conclusion From its humble beginnings some 40 years ago, ESG investing has experienced a groundswell of interest and support in the financial industry and among the investing public; today, it is an investment philosophy with a broad and rapidly growing appeal. As ESG standards become more uniform and as corporate performance along those metrics becomes more transparent and widely available, we believe demand for investment vehicles that incorporate ESG principles will only increase. Investors shouldn t have to choose between being value motivated or values motivated, and ESG funds offer a compelling way to pursue both of those important goals. 7
8 1 Global Sustainable Investment Review 2014, Global Sustainable Investment Alliance, Report on US Sustainable, Responsible and Impact Investing Trends 2014, The Forum for Sustainable and Responsible Investment, Environmental, Social, and Governance Issues in Investing, CFA Institute, October Investing For a Sustainable Future, MIT Sloan Management Review in collaboration with The Boston Consulting Group, From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance, University of Oxford, Arabesque Partners, March U.S. Trust Insights on Wealth and Worth Survey, U.S. Trust, This commentary is provided for informational purposes only and is not an endorsement of any security, mutual fund, sector, or index. The information contained herein is based on sources believed to be reliable, but it is neither all inclusive nor guaranteed by John Hancock Investments. Diversification does not guarantee a profit or eliminate the risk of a loss. Large company stocks could fall out of favor. The stock prices of midsize and small companies can change more frequently and dramatically than those of large companies. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. A portfolio concentrated in one sector or that holds a limited number of securities may fluctuate more than a diversified portfolio. Hedging and other strategic transactions may increase volatility and result in losses if not successful. Illiquid securities may be difficult to sell at a price approximating their value. A fund s ESG policy could cause it to perform differently than similar funds that do not have such a policy. Please see each fund s prospectus for additional risks. A fund s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at , or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money. John Hancock Funds, LLC Member FINRA, SIPC 601 Congress Street Boston, MA jhinvestments.com NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY. MF ESGSRIWP 6/16
Aligning Social Objectives with Financial Goals
Aligning Social Objectives with Financial Goals An Introduction to ESG Investing By Baird s Asset Manager Research ESG INCORPORATION STRATEGIES AND TERMS Socially Responsible Investing: A portfolio construction
More informationWHITEPAPER SERIES. ESG Investing. Sustainable Strategies, Competitive Return Opportunities
WHITEPAPER SERIES ESG Investing Sustainable Strategies, Competitive Return Opportunities Sustainable Investing Has Come of Age The future may be now for sustainable investing based on Environmental, Social
More informationSustainable Investing for Retirement Plans
Sustainable Investing for Retirement Plans Defined contribution plans have become the primary mechanism by which American workers save and invest for retirement. As a plan sponsor, you are responsible
More informationRESPONSIBLE INVESTING: A THREE PART SERIES
RESPONSIBLE INVESTING: A THREE PART SERIES PART II CROSSMARKGLOBAL.COM 2017 Page 2 of 7 Responsible Investing is a rapidly growing movement and each investor has unique priorities and values that affect
More informationAligning Investments with Personal Values. December 2017
Aligning Investments with Personal Values December 2017 Introduction I hope that one day, if you ask a firm who its responsible investing officer is, every single investment professional will say I am
More informationTIAA-CREF Asset Management. Responsible Investing Primer
TIAA-CREF Asset Management Responsible Investing Primer Responsible Investing Primer This document explains responsible investing, its four primary approaches, and potential benefits for investors. Executive
More informationResponsible investment primer
Responsible investment primer Executive summary Responsible investment primer This document explains responsible investment, its four primary approaches and potential benefits for investors. The many facets
More informationThe Morningstar Sustainable Investing Handbook
The Morningstar Sustainable Investing Handbook Dear Investor, I founded Morningstar in 1984 because I wanted to make high-quality investment information available to everyday investors to help inform their
More informationPerformance Perspectives on ESG Investment Strategies
Performance Perspectives on ESG Investment Strategies Laurie Hesketh, CIPM, PMP (Director, Meradia Group) Since 1997, Meradia is a specialized consulting firm focused on transformational change initiatives
More informationMIKE HALLORAN, CFA INVESTMENT STRATEGIST JANNEY MONTGOMERY SCOTT LLC MEMBER: NYSE, FINRA, SIPC
1 Michael Halloran, CFA A GUIDE TO ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INVESTING December 21, 2018 Environmental, Social, and Governance (ESG) investing is a rapidly growing investment discipline
More informationESG: Impact on Companies Doing Business in America and Why They Must Care
ESG: Impact on Companies Doing Business in America and Why They Must Care 1 INTRODUCTION When the environmental, social and governance (ESG) movement first began to take shape across corporate America
More informationAIG ESG Dividend Fund
Class A: EDFAX Class C: EDFCX Class W: EDFWX AIG ESG Dividend Fund Socially Conscious Investing that Delivers Total Return Potential Invest Sustainably for Income and Growth Potential Environmental, Social
More informationINTRODUCING ESG INVESTING. msci.com
INTRODUCING ESG INVESTING msci.com ESG INVESTING IS THE CONSIDERATION OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE FACTORS ALONGSIDE FINANCIAL FACTORS IN THE INVESTMENT DECISION MAKING PROCESS. REMY BRIAND
More informationDEFINING ESG INVESTING
M E K E T A I N V E S T M E N T G R O U P BOSTON MA CHICAGO IL MIAMI FL PORTLAND OR SAN DIEGO CA LONDON UK DEFINING ESG INVESTING John A. Haggerty, CFA Gustavo Bikkesbakker Colleen A. Smiley Mika L. Malone,
More informationMaximizing Capital. The Power of Investing with Impact. CRC (3/15) Expiration: 3/16
Maximizing Capital The Power of Investing with Impact CRC1137880 (3/15) Expiration: 3/16 What Is Investing with Impact? Morgan Stanley defines Investing with Impact as an approach that aims to generate
More informationInvesting with Impact. Creating Economic, Social and Environmental Value
Investing with Impact Creating Economic, Social and Environmental Value Delivering Value Across Multiple Dimensions The Investing with Impact Platform focuses on flexibility and engagement, allowing both
More informationESG AND RESPONSIBLE INVESTMENT PHILOSOPHY
ESG AND RESPONSIBLE INVESTMENT PHILOSOPHY February 2017 AMP CAPITAL ESG AND RESPONSIBLE INVESTMENT PHILOSOPHY 1 AMP Capital is one of Asia Pacific s largest investment managers. We have a single goal in
More informationInvesting with Impact. Creating Economic, Social and Environmental Value
Investing with Impact Creating Economic, Social and Environmental Value Delivering Personalized Value The Investing with Impact Platform focuses on flexibility and engagement, allowing both targeted allocation
More informationVANGUARD ESG ETFs FOR FINANCIAL ADVISORS ONLY. NOT FOR PUBLIC DISTRIBUTION.
VANGUARD ESG ETFs FOR FINANCIAL ADVISORS ONLY. NOT FOR PUBLIC DISTRIBUTION. Today more and more people are evaluating investments not only based on their financial goals but also based on their personal
More informationThe conversation is now
For professional clients / qualified / institutional investors only. The conversation is now Talking about the 'E' in ESG Sustainable investing (SI) has evolved from a niche topic to become entrenched
More informationADVANCE SUSTAINABLE INVESTMENT APPROACH
ADVANCE SUSTAINABLE INVESTMENT APPROACH July 2018 CONTENTS What is sustainable investing?... 1 What are ESG factors?... 2 Our beliefs... 2 Our approach to sustainable investment... 2 1. Investment process...3
More informationAccommodating ESG objectives through factor investing
Invesco Investment Insights Accommodating ESG objectives through factor investing June, 2018 Stephen Quance Director of Factor Investing Asia Pacific Key takeaways Many investors remain unsure how to implement
More informationLPL RESEARCH THOUGHT. October 2018 LEADERSHIP. Sustainable Investing. Strategic Discover y MEMBER FINRA/SIPC
LPL RESEARCH P R I VA T E C L I E N T THOUGHT October 2018 LEADERSHIP Sustainable Investing Strategic Discover y MEMBER FINRA/SIPC CONSIDER THE FOLLOWING An energy company fails to uphold sound health
More informationHow a company uses and impacts the natural environment in its supply chain
Environmental, Social and Governance What is? Is just a buzz or a trend? How are managers different in their approaches/ Evolution of Clarifying fiduciary obligations and due diligence of plan sponsors
More informationGreen Muni Bonds: Responsible investing in a centuries-old asset class. July 2017 ARTICLE HIGHLIGHTS
July 2017 Green Muni Bonds: Responsible investing in a centuries-old asset class Stephen M. Liberatore, CFA Lead Portfolio Manager Responsible Investment Fixed Income Strategies TIAA Investments Joel H.
More informationMaximizeYour Impact. MorganStanleyGlobal Impact FundingTrust (GIFT): Impact Pools. CRC (3/2015) Expiration (3/2016)
MaximizeYour Impact MorganStanleyGlobal Impact FundingTrust (GIFT): Impact Pools CRC1126157 (3/2015) Expiration (3/2016) Global Impact Funding Trust (GIFT) Introduction The Morgan Stanley Global Impact
More informationSocially Responsible Investing: Law and Legal Ethics. Marc Jackowitz, CFA UBS C. Carter Ruml Wyatt Tarrant & Combs, LLP June 16, 2010
Socially Responsible Investing: Law and Legal Ethics Marc Jackowitz, CFA UBS C. Carter Ruml Wyatt Tarrant & Combs, LLP June 16, 2010 A global leader focused on you UBS Global influence Wealth management
More informationEnvestnet s Impact Investing Platform The 5 Pillars of Impact
Envestnet s Impact Investing Platform The 5 Pillars of Impact Our impact platform can help advisors support clients who seek both positive social impact and financial returns. What is impact investing?
More informationValues-Based Investing
Keeping You Informed Values-Based Investing For some investors, maximizing their financial returns or beating a benchmark is not the only thing that matters. These investors aspire to create portfolios
More informationConsulting Group Perspectives October Michael Deo, CFA Analyst
Consulting Group Perspectives October 2017 Why ESG Investing Makes Sense Environmental, social and governance strategies allow investors to incorporate their principles into portfolios without sacrificing
More informationEQUITIES. Making the most of the market s long-term potential
EQUITIES Making the most of the market s long-term potential Three things to know about the stock market 1 It s one of the best ways to build wealth Stocks have outpaced bonds and inflation over time,
More informationMaximize Your Impact. Morgan Stanley Global Impact Funding Trust (GIFT): Impact Pools CRC (7/2016) Expiration (7/2017)
Maximize Your Impact Morgan Stanley Global Impact Funding Trust (GIFT): Impact Pools CRC1527771 (7/2016) Expiration (7/2017) Global Impact Funding Trust (GIFT) Introduction Morgan Stanley GIFT is an independent
More informationIntention versus practice: factors limiting downside protection in portfolio models
July 2016 Intention versus practice: factors limiting downside protection in portfolio models Few portfolios in our study Leo M. Zerilli, CIMA Head of Investments John Hancock Investments John P. Bryson
More informationRESPONSIBLE INVESTING: A THREE PART SERIES
RESPONSIBLE INVESTING: A THREE PART SERIES PART I CROSSMARKGLOBAL.COM 2018 Page 2 of 7 Part 1: The Evolution of Responsible Investing (RI) It s no secret that investors are increasingly incorporating responsible
More informationRESPONSIBLE INVESTING: A THREE PART SERIES
RESPONSIBLE INVESTING: A THREE PART SERIES PART I CROSSMARKGLOBAL.COM 2017 Page 2 of 7 Part 1: The Evolution of Responsible Investing (RI) It s no secret that investors are increasingly incorporating responsible
More informationSustainable Investing as Performance Investing
Sustainable Investing as Performance Investing January 2016 (updated March 2018) How does a best-in-class, publicly traded company that incorporates high standards for its environmental impact, social
More informationSeeking better outcomes.
RI summary report 2018 Seeking better outcomes. For investors, our communities and the planet. Nuveen believes that responsible investing principles can help provide enduring benefits for our clients and
More informationResponsible & Sustainable Investment Statement
Responsible & Sustainable Investment Statement Nanuk Asset Management February 2018 Overview Nanuk is committed to investing sustainably and managing responsibly. Nanuk s commitment is inherent in the
More informationResponsible Investment: Policies and Principles
Responsible Investment: Policies and Principles At Franklin Templeton Investments (FTI), responsible investment (RI) refers to the integration of environmental, social and governance (ESG) factors into
More informationResponsible Investment Position Statement.
Responsible Investment Position Statement. October 2017 BT Financial Group ( BTFG ) provides wealth management services to Australians across superannuation, insurance, investments and advice. Our mission
More informationSustainable Signals. Asset Owners Embrace Sustainability
Sustainable Signals Asset Owners Embrace Sustainability Executive Summary Sustainable investing has gone from a niche investment idea to attracting enough capital to start having an impact on global challenges
More informationFundamentals of Sustainable and Responsible Investment. The World Bank Washington DC May 20, :30 am 11:30 am
Fundamentals of Sustainable and Responsible Investment The World Bank Washington DC May 20, 2014 8:30 am 11:30 am US SIF and US SIF Foundation The US SIF Foundation is a 501c3 organization that carries
More informationThe Indigo Group at Morgan Stanley. Indigo Sustainable Portfolios
The Indigo Group at Morgan Stanley Indigo Sustainable Portfolios 3280 Peachtree Road, NE Suite 1900, Atlanta, GA 30305 404-264-4288 / MAIN 800-421-2741 / TOLL-FREE 470-558-3536 / FAX The Indigo Group at
More informationALIGNING INVESTMENT CHOICES WITH YOUR PERSONAL VALUES. Sustainable Investing with Asset Management Services
ALIGNING INVESTMENT CHOICES WITH YOUR PERSONAL VALUES Sustainable Investing with Asset Management Services Investing for your future and the world you want to see Decades ago, exclusionary screening emerged
More informationPFM Asset Management LLC. 300 S. Orange Avenue Suite 1170 Orlando, FL
PFM Asset Management LLC 300 S. Orange Avenue Suite 1170 Orlando, FL 32801 407.648.2208 www.pfm.com Gender, race and other forms of equality? Poverty, access to food or education? Environment, clean water
More informationBetter Outcomes, Less Risk. ESG & Retirement Plans The Case for Greater Compatibility
Better Outcomes, Less Risk ESG & Retirement Plans The Case for Greater Compatibility EXECUTIVE SUMMARY Environmental, social and governance ( ESG ) investing is growing in its understanding, acceptance
More informationSocially Responsible Investing Survey. September 2018
Socially Responsible Investing Survey September 2018 1 Research Method Socially responsible investments investments that aim to promote environmental stewardship, consumer protection, human rights, and
More informationResponsible & Sustainable Investment Statement
Responsible & Sustainable Investment Statement Nanuk Asset Management June 2018 Overview Nanuk is committed to investing sustainably and managing responsibly. Nanuk s commitment is inherent in the firm
More informationRESPONSIBLE INVESTMENT POLICY. Principles for Responsible Investment... 2 ESG Issues and Objectives... 3 ESG approach... 5 Engagement...
RESPONSIBLE INVESTMENT POLICY Principles for Responsible Investment... 2 ESG Issues and Objectives... 3 ESG approach... 5 Engagement... 5 June 2017 1 Principles for Responsible Investment Responsible investment
More informationALTERNATIVES. Impact investing: solutions for people and planet through alternatives. Executive summary
ALTERNATIVES Impact investing: solutions for people and planet through alternatives nuveen knows 4Q18 Rekha Unnithan, CFA, CIMA Impact Investing Portfolio Manager Executive summary Impact investing is
More informationLPL RESEARCH AT A GLANCE WHO WE ARE WHAT WE DO MEMBER FINRA/SIPC
LPL RESEARCH WHO WE ARE WHAT WE DO AT A GLANCE MEMBER FINRA/SIPC 1 ADVISOR S TRUSTED PARTNER LPL Research is your advisor s trusted partner. Our mission is simple: Provide independent and objective investment
More informationDow Jones Sustainability North America Index Dow Jones Sustainability United States Index
Dow Jones Sustainability North America Index Dow Jones Sustainability United States Index Launch Event 23 September 2005 New York, USA 1 Program Sustainability Investing A Market Overview Jane Ambachtsheer
More informationINSTITUTIONAL ADVANCES INCUBATING IDEAS FOR GROWTH
INSTITUTIONAL ADVANCES INCUBATING IDEAS FOR GROWTH IT MAY COME AS A SURPRISE TO LEARN THAT NEARLY HALF OF THE ASSETS UNDER OUR MANAGEMENT TODAY ARE ON BEHALF OF ENDOWMENT & FOUNDATION AND GLENMEDE INVESTMENT
More informationEVOLUTION OF RESPONSIBLE INVESTING
THE EVOLUTION OF RESPONSIBLE INVESTING CROSSMARKGLOBAL.COM AUGUST 2017 www.capstonefinancial.com Page 2 of 7 Part 1: The Evolution of Responsible Investing (RI) It s no secret that investors are increasingly
More informationTHIS MATERIAL IS FOR INSTITUTIONAL/BROKER-DEALER USE ONLY. NOT FOR DISTRIBUTION OR USE WITH THE PUBLIC.
Value Price is what people pay, value is what they pay for. You don t get paid for the hour, you get PAID FOR THE VALUE you bring to the hour. WARREN BUFFET Today s objectives 1 Define the real issues
More informationP-Cubed: Pathstone Portfolio Platform
P-Cubed: Pathstone Portfolio Platform P-Cubed. What is it? The Pathstone Portfolio Platform (P-Cubed) is a proprietary investment execution methodology that provides the ability for investors to hold diverse
More informationSustainable, Responsible and Impact Investing (SRI)
Sustainable, Responsible and Impact Investing (SRI) PRESENTATION TO: October 22, 2015 Presenter: Gary Ometer, CPA, CGMA, Chief Financial Officer, Responsible Investing History VGFOA - SRI 2 Terms Related
More informationUnderstanding ESG Investing
Understanding ESG Investing Answers to advisors and investors most pressing questions about ESG Sharon French, CIMA Head of Beta Solutions Executive Summary ESG investing is a method for evaluating how
More informationThe Indigo Group at Morgan Stanley. Indigo Sustainable Portfolios
The Indigo Group at Morgan Stanley Indigo Sustainable Portfolios 3280 Peachtree Road, NE Suite 1900, Atlanta, GA 30305 404-264-4288 / MAIN 800-421-2741 / TOLL-FREE 470-558-3536 / FAX The Indigo Group at
More informationInvesting With Impact. Create Positive Economic, Social and Environmental Impact
Investing With Impact Create Positive Economic, Social and Environmental Impact Every dollar you send into the world makes an impact. What do you want your impact to be? Page 2 of 35 We ll Be Talking About
More informationReturn on values. UBS Investor Watch. Most sustainable investors expect better performance, bigger impact
UBS Investor Watch Global insights: What s on investors minds / 2018 Volume 2 Return on values Most sustainable investors expect better performance, bigger impact Every day, wealthy investors make spending,
More informationESG Investing. Overview of the What, Why and How for Planners. Presented by: Erica Blake, CFA, CFP. October 17, 2018
ESG Investing Overview of the What, Why and How for Planners Presented by: Erica Blake, CFA, CFP October 17, 2018 2 Where are you with ESG Investing? Sustainable responsible investing Impact ESG Values
More informationCOMPLETING THE ANALYSIS: ESG INTEGRATION
COMPLETING THE ANALYSIS: ESG INTEGRATION NEPC Impact Investing Committee Executive Summary Investment strategies encompassing responsible investing are expanding rapidly amid greater interest from asset
More informationBLI General ESG Policy. February 2018
BLI General ESG Policy February 2018 BLI s equity investment strategy consists of investing in companies that respect the quality and valuation criteria of our Business-Like-Investing stock-selection methodology.
More informationEXAMINING RISK FROM A WIDER ANGLE SUSTAINABLE FIXED INCOME INVESTING
EXAMINING RISK FROM A WIDER ANGLE SUSTAINABLE FIXED INCOME INVESTING Sustainable investing is neither a niche, nor a willing sacrifice of investment return for the sake of some other goal. Rather, it is
More informationThe Power of ESG. Plan sponsors are seeking advice on ESG. The Science of Satisfaction
The Power of ESG Environmental, social, and corporate governance (ESG) investments may make retirement plans a more powerful benefit. The Science of Satisfaction The Science program offers you insights
More informationMANAGED ACCOUNTS. Portfolio Solutions. Providing the guidance and flexibility to meet your customized investing needs
MANAGED ACCOUNTS Portfolio Solutions Providing the guidance and flexibility to meet your customized investing needs INTRODUCING PORTFOLIO SOLUTIONS When it comes to achieving your financial goals, here
More informationSocially Responsible Investing:
Socially Responsible Investing: An Introduction to SRI in the Defined Contribution Arena Executive Summary As plan sponsors assess investment options for their participants, they consider participants
More informationSocially Responsible Personal Strategy GO TO TO LEARN MORE ABOUT OUR FREE FINANCIAL TOOLS
Socially Responsible Personal Strategy GO TO WWW.PERSONALCAPITAL.COM TO LEARN MORE ABOUT OUR FREE FINANCIAL TOOLS What is socially responsible investing? This is a very broad and somewhat subjective concept.
More informationMeasurement and oversight of alternative strategies. Leo M. Zerilli, CIMA, Head of Investments, John Hancock Investments
Measurement and oversight of alternative strategies Leo M. Zerilli, CIMA, Head of Investments, John Hancock Investments Over 25 years of manager research experience Oversee nearly 30 manager relationships
More informationIMPACT INVESTING. Is It Right for Your Clients? Investing for Good SM. A Presentation for Financial Advisors
IMPACT INVESTING Is It Right for Your Clients? A Presentation for Financial Advisors Investing for Good SM All investments have social and environmental impacts that can be positive or negative. At Domini
More informationInvesting With Impact. Create Positive Economic, Social and Environmental Impact
Investing With Impact Create Positive Economic, Social and Environmental Impact Every dollar you send into the world makes an impact. What do you want your impact to be? Page 2 of 36 We ll Be Talking About
More informationMorgan Stanley. Maximizing Capital. The Indigo Group. The Indigo Group Morgan Stanley CRC
Morgan Stanley Maximizing Capital The Indigo Group Maximizing Capital The Indigo Group at Morgan Stanley 2 What Is Investing with Impact? Morgan Stanley defines Investing with Impact as an approach that
More informationESG Policy & Process. 1. Overview and Philosophy
Wells Capital Management ESG Policy & Process Updated March 2018 1. Overview and Philosophy Through our independent and specialized investment teams, Wells Fargo Asset Management ( WFAM ) 1 brings together
More informationSocially Responsible Investing Panel
FINANCIAL FORUM 2017 Socially Responsible Investing Panel March 29, 2017 SOCIALLY RESPONSIBLE INVESTING PANEL Introduction SFU Perspective UVic Perspective PH&N Perspective Key Considerations Outcomes
More informationSPDR Practice Management Team AIM HIGHER: Helping Investors Move from Ambition to Action with ESG Investment Approaches
SPDR Practice Management Team AIM HIGHER: Helping Investors Move from Ambition to Action with ESG Investment Approaches Aim Higher: Helping Investors Move From Ambition to Action With ESG Investment Approaches
More informationSustainable Investing
Sustainable Investing Putting your money to work for purpose and performance Coen Brouwer, Director, BlackRock 23 May, 2017 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY Global growth in sustainable
More informationPrinciples for. Responsible Investment. An investor initiative in partnership with UNEP Finance Initiative and the UN Global Compact
Principles for Responsible Investment An investor initiative in partnership with UNEP Finance Initiative and the UN Global Compact PREVI is committed to its members and beneficiaries on a long term basis.
More informationThe story of responsible investing. Responsible investing
The story of responsible investing Responsible investing The story of responsible investing RI DEFINED Responsible investing... Is a philosophy that incorporates ESG factors Incorporates these factors
More informationRESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE
RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE OUR APPROACH NOT ALL RESPONSIBLE INVESTMENT SOLUTIONS ARE CREATED EQUAL Different organizations define responsible investing in different
More informationResponsible Investing at Parametric
April 2017 Jennifer Sireklove, CFA Director, Investment Strategy at Parametric Principles-based investing has a long history in the United States, and recently there has been a surge of interest in incorporating
More informationTHROUGH THE BEHAVIORAL FINANCE LENS Impact Investing: Your Priorities and Your Portfolio
THROUGH THE BEHAVIORAL FINANCE LENS Impact Investing: Your Priorities and Your Portfolio Merrill Lynch Behavioral Finance SUMMER 2018 Andrew Porter, Director of Behavioral Finance SUMMARY In this paper,
More informationSOCIALLY RESPONSIBLE INVESTING: MUNIS GO MAINSTREAM BY JAMES DEARBORN 2016 GLOBAL PERSPECTIVES
SOCIALLY RESPONSIBLE INVESTING: MUNIS GO MAINSTREAM BY JAMES DEARBORN 2016 GLOBAL PERSPECTIVES SOCIALLY RESPONSIBLE INVESTING: MUNIS GO MAINSTREAM Municipal bonds become a mainstream component of socially
More informationAccelerating the Momentum toward ESG (Environmental, Social, Governance)
Accelerating the Momentum toward ESG (Environmental, Social, Governance) Impact investing is rapidly evolving as demand grows and data is increasingly available. Strategies that utilize ESG (environmental,
More informationESG Risk Management Policy MLC Nominees Pty Limited PFS Nominees Pty Limited (the Trustees )
MLC Nominees Pty Limited PFS Nominees Pty Limited (the Trustees ) Policy Administration Information Schedule Policy Name ESG Risk Management Policy Version Number 1.0 Approval Date 26 June 2014 Effective
More informationINTERNATIONAL EQUITIES. Charting a course for global opportunities
INTERNATIONAL EQUITIES Charting a course for global opportunities Three things to know about investing abroad 1 International markets have periods of outperformance Historically, non-u.s. stocks and U.S.
More informationThe Sustainability Edge in Real Estate Investing
The Sustainability Edge in Real Estate Investing Commercial real estate can have a significant impact on the environment and an increasing number of real estate industry professionals are incorporating
More informationRESPONSIBLE OWNERSHIP Engagement Policy
RESPONSIBLE OWNERSHIP Engagement Policy 16 April, 2018 2018 Northern Trust Corporation northerntrust.com This policy covers the below funds: NORTHERN TRUST INVESTMENT FUNDS PLC: The NT Europe (ex-uk) Equity
More informationThought leadership and insights from Frontier Advisors
THE Thought leadership and insights from Frontier Advisors Issue 134 October 2017 Consultant Branka Needham joined Frontier as an Associate in 2003 and was promoted to Consultant in 2007. Her responsibilities
More informationSUPPLEMENT TO CALVERT LARGE CAP VALUE FUND. Calvert Equity Funds Prospectus (Class A, C and Y) dated April 30, 2015
SUPPLEMENT TO CALVERT LARGE CAP VALUE FUND Calvert Equity Funds Prospectus (Class A, C and Y) dated April 30, 2015 Date of Supplement: August 17, 2015 THIS SUPPLEMENT SUPERSEDES AND REPLACES THE SUPPLEMENT
More informationInvestors Ask For More Information (Why) Should Companies Be Bothered?
Investors Ask For More Information (Why) Should Companies Be Bothered? Alvar Roosimaa Limestone Investment Management Investor Relations Seminar Macedonian Stock Exchange and PFS Program September 24,
More informationThe Integrated Core Approach to ESG
Capital Appreciation Risk Management Income Generation Liquidity Management ESG The Integrated Core Approach to ESG The Case for the Next Generation of ESG Investing ESGG Corporations seem to now accept
More informationRESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE
RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE THIS BROCHURE IS PRINTED ON SUSTAINABLY RESOURCED AND RECYCLED PAPER STOCK OUR APPROACH NOT ALL RESPONSIBLE INVESTING SOLUTIONS ARE CREATED
More informationPUBLIC SECTOR PENSION INVESTMENT BOARD (PSP INVESTMENTS) RESPONSIBLE INVESTMENT POLICY
PUBLIC SECTOR PENSION INVESTMENT BOARD (PSP INVESTMENTS) RESPONSIBLE INVESTMENT POLICY November 2017 The Public Sector Pension Investment Board ( PSP Investments ) 1 is one of Canada s largest pension
More informationSocially Responsible Investment Insights
Socially Responsible Investment Insights BE THE CHANGE YOU WANT TO SEE IN THE WORLD. -GHANDI HIGHLIGHTS Doing Well While Doing Good In This Edition We explore the exciting field of Socially Responsible
More informationResponsible Investing Policy
Responsible Investing Policy Prepared September 2018 Version: 4.0 Issuing details: Prepared by: Suzanne Branton Chief Investment Officer Approved by: Board of Directors, CARE Super Pty Ltd Date of Approval:
More informationDo investors care about sustainability? Seven trends provide clues
Do investors care about sustainability? Seven trends provide clues March 2012 At a glance More investors see a connection between corporate and community well-being. They are using corporate sustainability
More informationA distinctive solution for your plan and employees. TIAA-CREF Lifecycle Funds
A distinctive solution for your plan and employees TIAA-CREF Lifecycle Funds TIAA has nearly 100 years of experience managing money for retirement and nearly 60 years of asset allocation experience. Our
More informationFOR PROFESSIONAL CLIENTS ONLY. Environmental, social and governance (ESG) investment policies
FOR PROFESSIONAL CLIENTS ONLY Environmental, social and governance (ESG) investment policies 2016 1. Does your organisation have a policy regarding the integration of environmental, social and corporate
More informationIntroduction. What is ESG?
Contents Introduction 2 Purpose of this Guide 6 Why reporting on ESG is important 10 Best Practice Recommendations 14 Appendix: Sustainability Reporting Initiatives 20 01 Introduction Environmental, social
More information