Bibliography ESG

1 - Introduction to ESG

Title What is Responsible Investment?
Date 2020
Author PRI
Abstract The report wishes to provide an overview of what responsible investment is, the different approaches. The report includes some of the most common misconceptions around this issue (expectations of lower returns, confusion with ethical investment …). It gives a timeline with the milestones in the evolution of responsible investment.
 

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Title From SRI to ESG: The Changing World of Responsible Investing
Date September 2013
Author Commonfund Institute
Abstract The terms socially-responsible investing, mission-related investing, impact investing and environmental, social and governance investing – all frequently grouped under the heading of responsible investing – have become a familiar part of the vocabulary of institutional and retail investors. Just what these terms mean in practice, however, and how their practitioners’ claims can be impartially assessed, has been less clear. The goal of this paper is to provide a road map to the responsible investing landscape for governing boards and committees who are considering whether and how to integrate environmental, social and governance factors into their investment process. We begin with a review of the principal categories of responsible investing and assess the way in which the world of responsible investing has moved from a practice of negative screening and exclusion of certain types of investment to one of seeking or encouraging certain characteristics in portfolio companies. We provide estimates of the size and growth trajectory of the responsible investing market and describe some of the institutional forces that are driving these trends. Finally, we suggest some policy approaches that interested institutions might take and supply a series of references for readers seeking further information about this rapidly evolving field.
 

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Title ESG from A to Z: a global primer
Date November 2019
Author Bank of America / Merrill Lynch
Abstract The primer dwells on why ESG matters as an investor. The primer starts with a definition of ESG with the key types of ESG investing strategies. It includes a detailed table with a suggestion of 10 reasons to support Sustainable Investment: alpha generation, demographics, need for other metrics apart from financial, happier employees, avoid bankruptcy risks, lower cost of capital, lower ESG controversies, climate changes as an investment opportunity...
 

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Title Sustainable Investing: Establishing Long-Term Value and Performance
Date February 2013
Author Deutsche Bank- Fulton, Kahn and Sharples
Abstract The reports summarize more than 100 academic studies around sustainable investing in the world and then focus and categorized 56 research papers, 2 literature reviews and meta-analysis. They arrive to the conclusion that CSR and ESG factors are correlated with superior risk-adjusted returns at a security level.
 

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Title Sustainable Investing: Establishing Long-Term Value and Performance
Date Dec 2015
Author Deutsche Bank- Fulton, Kahn and Sharples
Abstract The reports aggregated evidence from more than 2000 empirical studies that dwell on ESG and financial performance. The results show that there is business case to invest with ESG considerations that is empirically very well founded. Around 90% show a nonnegative relation between ESG and Corporate Financial Performance.
 

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Title Defining “green” in the context of green Finance
Date October 2017
Author EU
Abstract The publication provides and overview and analysis of different definitions of “Green” in relation to the multiple assets approaches: green bonds, equity and green lending. The study includes green sectoral taxonomies. The publication includes a literature review and a detailed guideline of different approaches of Sustainable Finance seen as a continuum depending on the focus of different themes and the expectations of returns.
 

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2 - ESG MARKET

Title Seeking Return on ESG Advancing the Reporting Ecosystem to Unlock Impact for Business and Society
Date January 2019
Author World Economic Forum (in collaboration with Allianz SE and Boston Consulting Group)
Abstract The ‘Building an Effective Ecosystem for ESG’ effort of the World Economic Forum is a collaboration with members and partners of the Forum, and looks to support other initiatives and the wider community to advance the state of ESG management. This paper summarises the initial findings of an extensive consultation process under that collective effort. The consultation process set out to uncover, in a landscape of often divergent views, opportunities for collective action to strengthen key foundations of ESG management. It included numerous interviews with industry experts and practitioners from across a range of stakeholder groups, research and analysis on published non-financial company reporting, and a review of existing external work, consultations and research literature. The undertaking investigated several important questions: – Which challenges within the ESG reporting ecosystem draw the strongest consensus for action between all communities? – Building on the work of existing initiatives, where is additional attention needed to accelerate the development of a more effective reporting ecosystem? – Looking ahead, what other opportunities could this effort explore to further advance a global dialogue on ESG performance?
 

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Title The Effect of Firm-level ESG Practices on Macroeconomic Performance
Date June 2020
Author Xiaoyan Zhou, Ben Caldecott, Elizabeth Harnett, & Kim Schumacher
Smith School of Enterprise and the Environment, University of Oxford, ** Tokyo Institute of Technology
Abstract This paper investigates whether the development and adoption of firm-level environmental, social and governance (ESG) practices affects national macroeconomic performance, and whether this differs between developed countries and emerging economies. Using dynamic panel techniques – generalised method-of-moments (GMM) estimators – we find that an increase of micro-ESG performance can result in the improvement of living standards as measured by GDP per capita. When we test this link by country type, we find that firm-level social performance in a country is positively associated with GDP per capita in both developed countries and emerging economies. As for the other two components of firm-level ESG measures, namely environmental and governance performance, we find that these affect macroeconomic performance in emerging economies, but that the effects remain insignificant in developed countries. While further research is needed, these results may be of particular interest to policymakers and central banks, as they suggest that encouraging the adoption of ESG practices at the firm-level could support macroeconomic performance.
 

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Title 2018- Global sustainable Investment Review
Date 2019
Author GSIA
Abstract The GSIA is an international alliance of organisations of different regional societies of Sustainable Investment. The annual review includes figures of global market size and gives breakdown of regions and among 7 strategies of sustainable investment.
 

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Title Guidance and case studies for ESG integration: equities and fixed income
Date 2018
Author CFA Institute & PRI
Abstract This publication, Guidance and Case Studies for ESG Integration: Equities and Fixed Income, provides a global insight on the ESG integration techniques of leading practitioners across all regions of the world and includes case studies by analysts, portfolio managers, and investors, who share how they integrate ESG into their analysis and tell their stories of ESG integration. It also introduces an ESG Integration Framework that can be a reference for practitioners to use when comparing their ESG integration techniques with their peers’ ESG integration techniques and identify those techniques that are suitable for their own firm. It also introduces an ESG Integration Framework that can be a reference for practitioners to use when comparing their ESG integration techniques with their peers’ ESG integration techniques and identify those techniques that are suitable for their own firm.
 

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Title Incorporating Environmental, Social and Governance (ESG) Factors into Fixed Income Investment
Date April 2018
Author World Bank Group publication. Georg Inderst and Fiona Stewart
Abstract The report pretends to show that ESG factors are material credit risk for fixed income investors. Incorporating ESG into fixed income investing should be part of the overall credit risk analysis and should contribute to more stable financial returns. It also dispels the myth that incorporating ESG means having to sacrifice financial returns. ESG investing is increasingly becoming part of the mainstream investment process for fixed income investors, as opposed to a specialist, segregated activity, often confined to green bonds.
 

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Title ICMA Green Bond Principles
Date June 2018
Author ICMA
Abstract The Green Bond Principles (GBP) are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond. The GBP are intended for broad use by the market: they provide issuers guidance on the key components involved in launching a credible Green Bond; they aid investors by ensuring availability of information necessary to evaluate the environmental impact of their Green Bond investments; and they assist underwriters by moving the market towards standard disclosures which will facilitate transactions.
 

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Title EU Green Bonds Standards
Date March 2020
Author European Commission
Abstract Green bonds play an increasingly important role in financing assets needed for the low-carbon transition. However, there is no uniform green bond standard within the EU. Establishing such a standard was a recommendation in the final report of the Commission’s High-Level Expert Group on sustainable finance.
 

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Title Green Bonds – A Key Tool for Financial Centre Competitiveness: Lessons from Europe
Date March 2019
Author Climate Bonds Initiative & UN Financial Centres fo Sustainability Europe
Abstract Financial centres have a vital role in scaling up sustainable finance action, as the places where demand for and supply of finance meet. In their different roles, financial centres can support the mainstreaming of sustainability risks and transform opportunities into market practices, across banking, capital markets, investing, insurance, and professional services.
 

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Title Green Bonds: Exploring Opportunities for Investment
Date March 2015
Author ShareAction & Climate Bonds Initiative
Abstract The green bond market has taken off in the past year with $36bn issued in 2014; triple the amount issued in 2013 ($11bn). A number of large investors, including Aviva Investors, Natixis Asset Managers and Zurich Re-insurance have signed an Investor Statement1 that acknowledges the significant risk posed by climate change and welcomes the growth of green bonds as a mechanism to finance climate solutions.
 

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Title Scaling Up Green Bond Markets for Sustainable Development
Date November 2015
Author Sonerud, B., Kidney, S., and Tripathy, A.
Climate Bonds Initiative & UNEP Inquiry into de Design of a Sustainable Financial System
Abstract The green bond market - bonds whose proceeds are used for green projects, most commonly climate mitigation and adaptation projects - is growing rapidly, with outstanding issuance at US$66bn in June 2015.
This growth needs to be accelerated to keep pace with the climate challenge. According to the Global Commission on the Economy and Climate US$6.2 trillion of investment is needed annually for new low-carbon infrastructure, which countries must start building now if they are to limit the effects of climate change.
Bonds can provide the long-term, stable investment returns which institutional investors need, making them appropriate vehicles to tap into institutional investors’ large capital holdings at scale. Bonds are also an attractive financing tool for infrastructure projects, providing a potentially low cost and long-term source of capital.
 

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Title PRI Case Study on Amundi/IFC One Planet Emerging Green Fund
Date 2019
Author Principles for Responsible Investment
Abstract In March 2018 the IFC and Amundi jointly launched the world’s largest targeted green bond fund focused on emerging markets. The Amundi Planet Emerging Green One (EGO) aims to deploy US$2bn into emerging markets green bonds over its seven-year lifetime. With a US$256 million cornerstone commitment from IFC, the fund aims to increase the capacity of emerging market banks to fund climate-smart investments. The Amundi-IFC partnership gives investors an opportunity to invest at scale, with exposure to emerging markets yields, and a positive impact on the energy transition in countries where it is most needed.
 

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Title Social Bond Principles
Date June 2020
Author ICMA
Abstract Social Bonds are use of proceeds bonds that raise funds for new and existing projects with positive social outcomes. The Social Bond Principles (SBP) updated as of June 2020 promote integrity in the Social Bond market through guidelines that recommend transparency, disclosure and reporting. They are intended for use by market participants and are designed to drive the provision of information needed to increase capital allocation to social projects.
 

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Title Sustainability-Linked Bond Principles
Date June 2020
Author ICMA
Abstract The Sustainability-Linked Bond Principles provide guidelines that recommend structuring features, disclosure and reporting. They are intended for use by market participants and are designed to drive the provision of information needed to increase capital allocation to such financial products. The SLBP are applicable to all types of issuers and any type of financial capital market instruments.
 

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Title Financing Credible Transitions
Date September 2020
Author Creed, A., Adamini, M., Vaze, P., and Boulle, B.
Climate Bonds Initiative
Abstract Green and sustainable bonds have become an increasingly important tool to finance these transitions. As the market has grown, so too has the breadth of assets and activities that is being financed to cover a more diversified cross-section of the global economy. Large GHG emitters, however, are still largely absent and present an opportunity for the markets to aid their sustainable transition. But while such actors have not played a significant role in the green finance market to date, they have a vital role to play in reducing global emissions – and are often key constituents in mainstream investment portfolios.
 

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Title Responsible Investment Guide for the Private Equity & Venture Capital Sector in Spain
Date February 2020
Author PwC & Ascri
Abstract This guide is intended as a practical tool that provides guidelines for integrating these issues into the management of the Private Equity and Venture Capital firms themselves (General Partners), making them ready to respond to market trends and investor demands (Limited Partners). It also provides recommendations for building ESG criteria into each and every stage of their activities, from fundraising to divestment.
 

English version Spanish version

Title Guide ESG Capital Investissement acteur du Développement Durable
Date 2018
Author PwC & France Invest
Abstract This document is a comprehensive guide for ESG integration throughout the whole investment cycle, with practical examples of ESG integration in different firms across France. It includes a deep introduction on the evolution of the market since its beginnings and the legislative developments both in France and in other countries that have led to the creation of the proper environment for ESG integration.
 

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Title Global Private Equity report 2020
Date 2020
Author Bain & Company
Abstract It is a report with a global view on the Private Equity market in 2019 and also what is coming in 2020. It includes a section dedicated to ESG market and impact investing with interesting figures on the evolution of ESG market and its compatibility with financial performance.
 

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Title The SDG Impact Practice Standards. Private Equity Funds
Date 2020 (currently in second public consultation)
Author SDG Impact (UNDP)
Abstract The SDG Impact Standards provide a clear system for integrating sustainable development and impact into business and investment decision making, providing a common language that connects and informs actions, decisions and, engagement and consultation. The primary audience for these Standards are Private Equity Fund Managers, investors and other actors directing private investment activity towards achieving the SDGs.
Fund Managers can use the Standards to map and design their Fund’s internal impact measurement and management systems to support both internal decision making and external reporting requirements under multiple frameworks.
 

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Title ESG Monitoring, Reporting and Dialogue in Private Equity
Date 2018
Author PRI & ERM
Abstract The aim of this guide is to support an exchange of information, underpinned by dialogue, that will keep LPs informed about the ESG characteristics of their private equity investments and the responsible investment practices of their investment managers. It includes guidelines on what reporting practices should be adopted by GPs in their policy, portfolio performance and relevant incidents to meet LPs demands of information.
 

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Title Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment
Date November 2018
Author IFC
Abstract This input paper for the G20 Sustainable Finance Working Group focuses on key aspects of sustainable Private Equity (PE) and Venture Capital (VC) market development and deployment. It discusses why sustainable PE/VC is a useful tool to catalyze other types of capital to achieve sustainability objectives, best practices and lessons learned from the experiences of knowledge partners, the main barriers to further developing the sustainable PE/VC market, and options for countries to voluntarily consider or adopt to overcome these barriers.
 

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Title Private Equity Responsible Investment Survey
Date 2019
Author PwC
Abstract An outlook of the evolution of the integration of Environmental, Social and Governance (ESG) integration at the house level and across the whole investment cycle within the Private Equity sector. The survey is developed at a global level, with the participation of 162 firms in 35 countries.
 

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Title Guide to ESG Due Diligence for Private Equity GPs and their Portfolio Companies
Date March 2019
Author InvestEurope
Abstract Best practices guidelines for identifying and addressing material ESG risks and opportunities in private equity firms, both prior to investment and during the ownership period. The guide is divided into three sections: Section One provides an overview of good practice steps an investor may wish to incorporate into ESG screening and due diligence processes; section two provides an overview of good practice steps an investor may wish to incorporate into its ownership practices and engagement with company management; and section three includes a questionnaire covering a range of ESG issues.
 

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Title ESG in Infrastructue
Date 2016
Author Abigail Beach
Abstract In infrastructure investing environmental, social and governance (ESG) issues remain critical considerations for practitioners given the long-term time horizon and often relatively significant financial investment required.ESG considerations and best practices evolve as capital is continually raised and deployed across the asset class. Relative to other asset classes such as private equity, infrastructure investing is comprised of a complex and nuanced mix of ESG factors including land acquisition, resettlement, community engagement and environmental impact. These complexities are revealed in the industry standards & guidelines and the types of risks, considerations and priorities that influence a firms ESG management system for infrastructure investing.
 

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Title Renewable Energy
Date 2019
Author Octopus
Abstract There has never been a more pressing time to think about renewable energy investment. This report identifies what drives institutional investors towards the asset class and what is holding them back.
 

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Title Unlocking Private Capital to Finance Sustainable Infrastructure
Date 2016
Author Farrah Andersen, Christina Becker-Birck, Liz Hanson, Sasha Shyduroff, Will Sloan, and Kathryn Wright
Abstract This report introduces a framework to mobilize private finance for sustainable infrastructure projects. The framework’s focus includes: identifying suitable funding models, establishing performance measurement, managing diverse risks, and facilitating effective stakeholder engagement. The report’s findings are drawn from a comprehensive review of best practices and in-depth interviews with experts and thought leaders involved in the deployment, financing and market development of sustainable infrastructure. Interview participants included representatives from the public, private and non-profit sectors and experts in complementary fields including social impact investing, renewable energy, and community-development finance.
 

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Title Integrating ESG factors into financial models for infrastructure investments
Date 2018
Author Barbara Weber, Britta Rendlen
Abstract This Guidance Note aims to illustrate how the consideration of ESG factors may inform the forecasting of financials, such as revenues, operating costs and capital expenditure, etc. in the context of assessing an infrastructure asset. These financials form the basis of financial models, e.g. discounted cash flow (DCF) models and ultimately of asset valuations.
 

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Title Defining and Measuring Green Investments: Implications for Institutional Invertors’ asset allocations
Date 2012
Author Inderst, G., Kaminker, Ch., Stewart, F.
Abstract In support of OECD work on private financing of green growth, long-term investment and the role of institutional investors, this definitional, stocktacking paper aims to fill a hole in the literature by providing a comprehensive review of the concepts and definitions related to „green‟ investments (also variously referred to as „clean‟, „sustainable‟, and „climate change‟ investments) that are currently used in the market place. The purpose of this research is not to take a position on a specific definition but rather to explore what is being generally used, whether there are commonalties and inconsistencies, and what lessons can be drawn from this analysis.
 

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Title Environmental Markets: A New Asset Class
Date 2014
Author Richard L. Sandor, Nathan J. Clark, Murali Kanakasabai, Rafael L. Marques
Abstract Growth in environmental markets has helped integrate corporate climate and environmental risks and liabilities into the balance sheets of businesses. Climate risks and pollution are no longer under the exclusive purview of the environmental, health, and safety departments of companies but are also of interest to the finance and accounting departments. Environmental financial markets have helped corporations hedge and manage long-term business risks associated with environmental mandates. In addition, as the markets mature, the opportunity arises to use these financial tools as catalysts for achieving numerous environmental sustainability and social development goals. Just as corporations must adjust their business models in response to the climate challenge, those concerned with the health of the environment must inform and motivate societies around the world to adapt to an environmentally sound mode of living.
 

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3 - ESG Portfolio Management

Title Does ESG Matter for Asset Allocation?
Author FIDANTE Partners, Joachim Klement
Abstract The integration of ESG factors into the investment process is increasingly becoming mainstream for institutional investors. However, investors struggle with how to incorporate ESG criteria into their top-down asset allocation decisions.
This report shows how ESG criteria can be systematically and consistently integrated into the asset allocation process. The approach can be used for almost any multi-asset portfolio without materially reducing return expectations or increasing portfolio risk.
 

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Title Strategic Asset Allocation: ESG’s New Frontier
Date 2019
Author Craig Mackenzie
Abstract We believe SAA and ESG are closely linked. That’s because social change – changes associated with environmental, social and governance issues – should shape the way we allocate capital to generate long-term returns. The relationship works the other way too.
We suggest that SAA can direct private capital to where it’s most needed to help alleviate our most pressing social problems.
This paper seeks to examine some of the more important aspects of this relationship and offers some practical investment solutions.
 

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Title Risk, Return, Responsibility – Inclusion of ESG Criteria in a Portfolio Optimization Framework – Master Thesis in Banking and Finance
Date January 2017
Author Pascal Zuber
Master Thesis in Banking and Finance
Centre for Microfinance Thesis Series
University of Zurich
Abstract Institutional investors, mainly in the pension fund sector, increasingly account for non-_financial criteria such as environmental, social and governmental (ESG) factors when it comes to portfolio optimization. Yet, many investors are reluctant to incorporate responsible investment considerations quantitatively in the sense of accounting for a set of criteria that figure as input in a portfolio construction and management process on equal terms with risk and return. Instead, sheer screening methods are prevalent in the industry, where some sort of exclusionary filtering takes place in the first stage, followed by common portfolio management according to mean-variance criteria. In fact, there is a shortage of adequate methods to consider ESG factors integrally. The present thesis rationalizes quantitative integration of ESG measures in portfolio management and discusses existing approaches in the literature, a majority of which is set in the area of Multiple Objective Optimization. It then suggests a novel method based on the Black Litterman model. The suggested framework imposes a structure on the covariance matrix to effectuate weight shifting according to single ESG scores of the portfolio members. Moreover, it enables the investor to calibrate the degree of ESG incorporation and allows for incorporating views on financial performance. The effects of the method on portfolio weights are analyzed empirically. In an out of sample analysis, the weight shifted portfolios generated by implementing the suggested method are shown to exceed the benchmark in terms of portfolio ESG scores. One of the three variations of the suggested method is able to outperform the market in terms of financial performance for the period in consideration.
 

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Title Strategic Asset Allocation: ESG’s new frontier
Date October 2019
Author Aberdeen Standard Investments
Abstract Strategic asset allocation, or SAA, is about forming views of the long-term returns available from different asset classes and then building portfolios with the best expected risk-adjusted returns, subject to various constraints.
The SAA and ESG are closely linked. That’s because social change – changes associated with environmental, social and governance issues – should shape the way we allocate capital to generate long-term returns. The relationship works the other way too. The SAA can direct private capital to where it’s most needed to help alleviate our most pressing social problems. This paper seeks to examine some of the more important aspects of this relationship and offers some practical investment solutions.
 

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Title From to Stockholder to the Stakeholder
How sustainability can drive financial outperformance
Date September 2014
Author Clark, G., Feiner, A. , Veihs M.
Abstract We now live in a world where sustainability has entered mainstream. This report, entitled From the Stockholder to the Stakeholder, aims to give the interested practitioner an overview of the current research on ESG.
In this enhanced meta-study more than 190 different sources are categorized. Within it, the authors find a remarkable correlation between diligent sustainability business practices and economic performance. The first part of the report explores this thesis from a strategic management perspective, with remarkable results: 88% of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cashflows. The second part of the report builds on this, where 80% of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance.
This report ultimately demonstrates that responsibility and profitability are not incompatible, but in fact wholly complementary. When investors and asset owners replace the question “how much return?” with “how much sustainable return?”, then they have evolved from a stockholder to a stakeholder.
 

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Title Can ESG add alpha? An analysis of ESG tilt and momentum strategies
MSCI Research Paper
Date June 2015
Author Zoltán Nagy, Altaf Kassam, Linda-Eling Lee
MSCI
Abstract Institutional investors’ interest in Environmental, Social and Governance (ESG) criteria has grown considerably over the past few years, but some remain concerned that the inclusion of ESG factors in their investment process comes at the cost of weaker risk-adjusted returns.
In this paper, we find that this performance trade-off does not always necessarily occur. We analyze stock returns of two strategies constructed using MSCI’s ESG data:
- The ”ESG Tilt” strategy overweights stocks with higher ESG ratings.
- The ”ESG Momentum” strategy overweights stocks that have improved their ESG rating over recent time periods.

We find that both of these strategies outperformed the global benchmark over the last eight years, while also improving the ESG profile of the portfolios.
Furthermore, a significant part of their outperformance was not explained by style factors, and thus may have been attributable to ESG factors. However, some of the less significant active factor exposures were quite stable and persistent, and thus also contributed to the performance of the portfolios.
The historical results presented in this paper show an example of how investors with the tolerance to take some active risk, while at the same time looking to improve the ESG profile of their portfolios on a systematic basis, could incorporate such strategies into their investment processes.
 

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Title A PRACTICAL GUIDE TO ESG INTEGRATION FOR EQUITY INVESTING
Date 2016
Author UNEP Finance Initiative, UN Global Compact
Abstract Integrating environmental, social and governance (ESG) factors into analysis of listed equity investments is the most widespread responsible investment practice in the market today.
Several drivers, including capital flowing into funds that integrate ESG factors and the growing awareness of academic research supporting the benefits, are encouraging more and more investors to practice ESG integration.
 

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Title ESG and financial performance: aggregated evidence from more than 2,000 empirical studies Journal of Sustainable Finance & Investment, 5(4).
Date 2015
Author Bassen, A., Busch, T. and Friede, G.
Abstract The search for a relation between ESG criteria and corporate financial performance (CFP) can be traced back to the beginning of the 1970s. Scholars and investors have published more than 2000 empirical studies and several review studies on this relation since then. The largest previous review study analyzes just a fraction of existing primary studies, making findings difficult to generalize. Thus, knowledge on the financial effects of ESG criteria remains fragmented. To overcome this shortcoming, 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.
 

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Title The Government Pension Fund Global (GPFG) in Norway
Date September 2019
Author Centre for Public Impact
Abstract The link provides a case study on the approach of the Norwegian Petroleum Fund investment approach the includes negative screening. The case points out the specific relevance of this sovereign fund as is way the government converts oil assets into an investment portfolio.
 

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Title IOPS Supervisory Guidelines on the Integration of ESG Factors in the Investment and Risk Management of Pension Funds
Date 2019
Author IOPS, International Organisation of Pension Supervisors
Abstract Guidelines from the IPOS on how the ESG factors should be integrated in the management of Pension Funds.
 

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Title Investment governance and the integration of environmental, social and governance factors
Date 2017
Author OECD
Abstract The paper presents the findings of an international stock-taking of the regulatory frameworks that apply to institutional investment in different jurisdictions and how these frameworks are interpreted by institutional investors in terms of their ability or responsibility to integrate ESG factors in their governance processes. It builds on OECD work on the regulation of insurance company and pension fund investment and is linked to OECD instruments, in particular the OECD Principles of Private Pension Regulation and the G20/OECD High-Level Principles of Long-term Investment Financing by Institutional Investors. It also supports the OECD's work on responsible business conduct which aims to assist multinational enterprises in the financial sector in applying the OECD Guidelines for Multinational Enterprises.
 

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Title Path to hydrogen competitiveness
Date January 2020
Author The Hydrogen Council & McKinsey&Company & E4tech
Abstract This report provides an evidence base on the path to cost competitiveness for 40 hydrogen technologies used in 35 applications. For policymarkers, such a perspective provides firm ground on which to base financial and non-financial support that will unlock the economic value of hydrogen and to develop adequate policy frameworks. For decision-makers in industry, it brings a holistic picture of whole value chain cost dynamics and interactions, allowing them to put their own efforts into a broader perspective.
 

English version

Title A hydrogen strategy for a climate-neutral Europe
Date July 2020
Author The European Commission
Abstract This communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions is a roadmap for creating a hydrogen economy as part of the EU’s decarbonisation strategy.
 

English version

Title ESG, SRI, and impact investing: A primer for decision - making
Date August 2018
Author Vanguard
Abstract ESG investing is an investment-related activity that account for some type of ESG consideration. It is not a separate asset class, a single strategy, or even a single type of action, and importantly, the appropriate approach is not the same for all investors. Specific forms of ESG investing can be prudent for investors with particular preferences, beliefs, resources, and circumstances. As with any other form of investing, investors must establish their goals and weigh the potential benefits of the various approaches against any relevant risks and costs to give themselves the best chance of achieving their desired outcome.
 

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Title The Guide to Sustainable Investing
Date 2020
Author Nordea
Abstract Sustainable development is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Investing sustainable has grown into supporting companies that are taking their responsibilities as well as a way of identifying future risks and opportunities.
 

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Title ESG & Impact Investing – The Evolving Landscape
Date 2020
Author Goldman Sachs Asset Management
Abstract In an ultra-connected world where transparency is the norm, investors have begun to appreciate that compartmentalizing their values and investment decisions is no longer practical. As such, recent years have seen unprecedented interest and activity across the environmental, social and governance (ESG) & impact investing spectrum, with many investors facing greater pressure to align their investments with their values. The focus on ESG & impact investing should only intensify as views continue to evolve and the influence of the millennial generation increases.
The spectrum of ESG & impact investing is broad–with ESG investing focused on incorporating ESG values into traditional frameworks and impact investing actively targeting investments aimed at solving social and environmental issues. Investors need to select the approach most suitable to meeting their goals.
 

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4 - ESG Regulation and Initiative

Title Overview of Sustainable Finance
Date 2020
Author EU
Abstract The webpage explains the definition of Sustainable Finance from the point of view of the EU. Includes references to the planned actions and different Task Forces the EU around the topic.
 

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Title Regulation (EU) 2019/2088 of the Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial sector. Sustainable Finance Disclosure Regulation (SFDR)
Date December 2019
Author European Parliament and European Council
Abstract One of the ten actions of the EU Sustainable Finance Action Plan is Sustainability-related Disclosure. The SFDR forms the core of new ESG reporting requirements for the manufacturers of, and advisers on, financial products. In general terms, the SFDR will focus firms’ disclosures on their assessment and management of sustainability risks and adverse impacts, as well as their verification of the characteristics and objectives of the products categorised as ESG. The SFDR disclosure obligations are split into information that must be provided at a firm level and information that must be provided for each individual financial product, including those products that do not have an ESG or sustainable focus.
 

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Title Taxonomy: Final report of the Technical Expert Group on Sustainable Finance
Date March 2020
Author Technical Expert Group on Sustainable Finance
Abstract The Final report of the Technical Expert Group on Sustainable Finance for the EU Taxonomy (TEG Taxonomy report) sets out the TEG’s final recommendations for the EC. The TEG Taxonomy report contains recommendations to the overarching design of the EU Taxonomy as well as guidance for its users. In addition to the summary of the economic activities covered by the technical screening criteria, the TEG Taxonomy report is supplemented by a technical annex containing a full list of technical screening criteria for economic activities which can substantially contribute to climate change mitigation or adaptation.
 

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Title Regulation (EU) 2020/852 of the European Parliament and the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (EU Taxonomy)
Date June 2020
Author European Parliament and European Council
Abstract This Regulation establishes the criteria for determining whether an economic activity qualifies as environmentally sustainable for the purposes of establishing the degree to which an investment is environmentally sustainable. Fund managers and institutional investors that make available financial products should disclose how and to what extent they use the criteria for environmentally sustainable economic activities to determine the environmental sustainability of their investments. This Regulation modifies the SFDR.
 

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Title Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement. Shareholder Right Directive II (SRD II)
Date May 2017
Author European Parliament and European Council
Abstract This Directive modifies the Directive 2007/36/EC of the European Parliament and of the Council that establishes requirements in relation to the exercise of certain shareholder rights attached to voting shares in relation to general meetings of companies which have their registered office in a Member State and the shares of which are admitted to trading on a regulated market situated or operating within a Member State. Greater involvement of shareholders in corporate governance is one of the levers that can help improve the financial and non-financial performance of companies, including as regards environmental, social and governance factors, in particular as referred to in the Principles for Responsible Investment, supported by the United Nations.
 

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5 - ESG Analysis, Risk & Valuation ESG Ratings

Title Valuing ESG: Doing Good or Sounding Good?
Date March, 2020
Author Bradford Cornell and Aswath Damodaran
Abstract In the last decade, companies have come under pressure to be socially conscious and environmentally responsible, with the pressure coming sometimes from politicians, regulators and interest groups, and sometimes from investors. The argument that corporate managers should replace their singular focus on shareholders with a broader vision, where they also serve other stakeholders, including customers, employees and society, has found a receptive audience with corporate CEOs and institutional investors. The pitch that companies should focus on “doing good” is sweetened with the promise that it will also be good for their bottom line and for shareholders. In this paper, we build a framework for value that will allow us to examine how being socially responsible can manifest in the tangible ingredients of value and look at the evidence for whether being socially responsible is creating value for companies and for investors.
 

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Title Deconstructing ESG Ratings Performance
Date June 2020
Author MSCI ESG Research LLC
Abstract This study provides further insight in the assessment of the ESG impact on stock performance.
 

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Title SRI & Performance
Date 2019
Author La Financiere de l’Echiquier (LFDE)
Abstract This study provides further insight in the assessment of the ESG impact on stock performance.
 

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Title Rating the Raters: Evaluating how ESG Rating Agencies Integrate Sustainability Principles
Date February 2019
Author Elena Escrig-Olmedo, María Ángeles Fernández-Izquierdo, Idoya Ferrero-Ferrero, Juana María Rivera-Lirio and María Jesús Muñoz Torres. University Jaume I.
Abstract Environmental, social, and governance (ESG) rating agencies, acting as relevant financial market actors, should take a stand on working towards achieving a more sustainable development. In this context, the objective of this paper is, on the one hand, to understand how criteria used by ESG rating agencies in their assessment processes have evolved over the last ten years and, on the other hand, to analyze whether ESG rating agencies are contributing to fostering sustainable development by the inclusion of sustainability principles into their assessment processes and practices according to the ESG criteria. This research is based on a comparative descriptive analysis of the public information provided by the most representative ESG rating and information provider agencies in the financial market in two periods: 2008 and 2018. The findings show that ESG rating agencies have integrated new criteria into their assessment models to measure corporate performance more accurately and robustly in order to respond to new global challenges. However, a deep analysis of the criteria also shows that ESG rating agencies do not fully integrate sustainability principles into the corporate sustainability assessment process.
 

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Title Aggregate Confusion: The Divergence of ESG Ratings
Date August 2019, updated May 17, 2020
Author Florian Berg, Julian F. Koelbel, Roberto Rigobon
Abstract This paper investigates the divergence of ESG ratings. Based on data from six prominent rating agencies - namely, KLD (MSCI Stats), Sustainalytics, Vigeo Eiris (Moody's), RobecoSAM (SP Global), Asset4 (Refinitiv), and MSCI IVA- it decomposes the divergence into three sources: different scope of categories, different measurement of categories, and different weights of categories. It finds that scope and measurement divergence are the main drivers, while weights divergence is less important. In addition, it detects a rater effect where a rater's overall view of a firm influences the assessment of specific categories.
 

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Title The ESG Advantage
Date 2020
Author S&P Global
Abstract The S&P Global Ratings ESG Evaluation report provides our analysts combined view of the ESG Profile of the company and its Preparedness assessment. The ESG Profile reflects the entity's current activities and starts by applying the outputs from the S&P Global Ratings ESG Risk Atlas to the entity's sector and regional footprint. Our company analysis reflects our view of the extent to which the company has mitigated these risks. The Preparedness assessment evaluates the entity's capacity to anticipate and adapt to a variety of long term plausible disruptions.
 

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Title ESG Reports and Ratings: What They Are, Why They Matter
Date July 2017
Author Harvard Law School
Abstract Most international and domestic public (and many private) companies are being evaluated and rated on their environmental, social and governance (ESG) performance by various third party providers of reports and ratings. Institutional investors, asset managers, financial institutions and other stakeholders are increasingly relying on these reports and ratings to assess and measure company ESG performance over time and as compared to peers. This assessment and measurement often forms the basis of informal and shareholder proposal-related investor engagement with companies on ESG matters. Report and ratings methodology, scope and coverage, however, vary greatly among providers. Many providers encourage input and engagement with their subject companies to improve or sometimes correct data. There are currently numerous ESG data providers, a summary of each of which is beyond the scope of this post, but some well-known third party ESG report and ratings providers include: (i) Bloomberg ESG Data Service; (ii) Corporate Knights Global 100; (iii) DowJones Sustainability Index (DJSI); (iv) Institutional Shareholder Services (ISS); (v) MSCI ESG Research; (vi) RepRisk; (vii) Sustainalytics Company ESG Reports; and (viii) Thomson Reuters ESG Research Data. This post provides an overview and analysis of these providers.
 

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Title Rating agencies boost ESG risk analysis
Date November 2019
Author Reuters
Abstract Credit rating agencies are increasing their efforts to identify environmental, social and governance risks for leveraged companies as investor interest in sustainable investments surges amid competition from independent ESG ratings firms. Sustainability risks have long been incorporated in traditional credit ratings, but agencies are now flagging relevant ESG risks for leveraged borrowers and capitalising on their access to information about privately owned companies, unlike independent ESG ratings firms, which tend to take information from public sources.
 

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6 - Engagement & Stewardship

Title Corporate social responsibility policies, stakeholder engagement and ownership structure: The moderating effect of board independence.
Date January 2020
Author Mohammad A.A. Zaid, Sara T.F. Abuhijleh & María Consuelo Pucheta-Martínez
Abstract This study primarily purposes to empirically examine the impact of stakeholder engagement mechanism in the form of professional shareholders on the corporate social responsibility (hereafter CSR) disclosure and how the previous nexus is shaped and moderated by the level of board independence within a dynamic framework. An agency theory framework is adopted to understand the extent to which professional shareholders, such as government, institutional, and foreign influence the firm’s CSR reporting. To the best of our knowledge, most of the prior empirical studies in CSR field have not yet provided a profound analysis of the moderating effect of board independence on the relationship between ownership structure and CSR disclosure. Hence, working on this sensitive issue merits our attention and deserves our recognition. Due to endogeneity bias, our reported results vary in their significance level across the three econometrics models; pooled OLS, fixed-effects, and system GMM. The findings unveiled that the effect of government, institutional, and foreign investors on CSR disclosure is more positive under conditions of the high level of board independence. The study sheds new light onto the paradoxical empirical findings of the prior research that has tried to link ownership structure to CSR disclosure directly by analyzing the significant role of independent directors on the aforementioned nexus. Further, the study pays rigorous attention to provide multidimensional insights for responsible parties to support the notion of stakeholder engagement mechanism beyond the current boundaries.

7 - ESG Client Reporting

Title Why and How Investors Use ESG Information: Evidence from a Global Survey
Date 2018
Author Amel-Zadeh, A. and Serafeim, G.
Abstract Using survey data from mainstream investment organizations, we provide insights into why and how investors use reported environmental, social, and governance (ESG) information. Relevance to investment performance is the most frequent motivation, followed by client demand, product strategy, and then, ethical considerations. An important impediment to the use of ESG information is the lack of reporting standards. Among the various ESG investment styles, negative screening is perceived to be the least beneficial to investments and is driven by product and ethical considerations. Full integration and engagement are considered more beneficial and are driven by relevance to investment performance.
 

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Title ESMA’s technical advice to the European Commission on integrating sustainability risks and factors in MiFID II
Date 2019
Author ESMA
Abstract The publication on how investment firms should address sustainability issues and considerations when providing advice to their clients in relation to the Amendment to MiFID II. The paper summarizes the key finding in relation to the public consultation on the issue. The organization offers advice on the process and dwells on critical debates such as taxonomy and importance of common definitions for the development of Sustainable Finance. There is a strong debate about the wording of the amendment as the consequences and impact for asset managers is high.
 

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8 - Trends Affecting ESG

Title Unhedgeable risk: How climate change sentiment impacts investment
Date 2015
Author CISL
Abstract The research shows the impact of climate change performing different asset allocations depending different asset classes and regions. The results show that negative impact of climate change con only be offset partially and thus climate change becomes the “unhedgeable risk” for investment portfolios.
 

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Title Low Carbon Economy Index 2019
Date December 2019
Author PwC
Abstract This report presents the current decarbonization rate (understood as CO2 emissions per GDP unit) of the global economy and the G20 economies vs the decarbonization rate needed to fulfil with the Paris Agreement.
 

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Title The state of climate tech 2020
Date September 2020
Author PwC
Abstract This research represents a first-of-its-kind analysis of the state of global climate tech investing. “Climate tech” encompasses a broad set of sectors which tackle the challenge of decarbonising the global economy, with the aim of reaching net zero emissions before 2050.
 

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Title Responsible Investment Guide for the Private Equity & Venture Capital Sector in Spain
Date February 2020
Author PwC & Fundación Seres
Abstract This report analyses the role of private companies on the 2030 Agenda, focusing on SDG 4 - Quality education. A quality education helps to lifting out of poverty and reducing inequality, improves social and environmental awareness and stimulates economic development and innovation. The report describes the status of the education in Spain and suggests recommendations for private companies to be done around education.
 

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Title UN Guiding Principles, Principles on Business and Human Rights
Date 2011
Author United Nations Human Rights. Business-Humanrights.org
Editor Bbusiness-Humanrights.org
Abstract The UN Guiding Principles on Business and Human Rights are a set of guidelines for States and companies to prevent, address and remedy human rights abuses committed in business operations.
 

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Title PRI (2020) Social Issues
Date -
Author UN PRI ORG
Editor UN PRI ORG
Abstract The PRI supports investors’ efforts to address social issues such as human rights, working conditions and modern slavery. Latest Social Publications, videos and news. Social pilar is divided by UN PRI ORG in three subcategories: 1) Human rights and labour standards; 2) Employee relations; 3) Conflict zones.
 

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Title 2020 ESG trends to watch - MSCI
Date January 2020
Author MSCI, Linda-Eling Lee, Meggin Thwing-Eastman, Ric Marshall
Abstract ESG themes are long-term, but some can emerge with sudden force. We are watching five trends we believe will unfold in 2020 to catapult ESG investing into the new decade.
1. Climate Change Innovators
2. New terms for capital: ready or not, here comes ESG
3. Re-valuing real estate: investing in the eye of the hurricane
4. The new human capital paradox: juggling layoffs and shortages
5. Keeping score on stakeholder capitalism: looking for accountability in all the new places
 

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Title Human Capital and the Future of Work:
Implications for Investors and ESG integration
Date 2019
Author Sakis Kotsantonis (KSS Advisors) and George Serafeim (Harvard Business School)
Abstract Human capital development is a key consideration for most companies around the world. While human capital has been a key consideration for businesses, it has only been more recently that investors have paid attention to it. With the emergence of environmental, social and governance (ESG) investment frameworks and impact investing activities human capital has propelled to an important pillar of investment analysis both from a financial and a social impact perspective. This is because human capital is now recognized as one of the most important drivers of competitiveness, value creation and sustainable competitive advantage. Moreover, human capital development (HCD) through strong workplace practices is linked to positive societal impacts as manifested by better health outcomes and well-being.
 

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Title CORPORATE GOVERNANCE POLICIES
Date October 2018
Author Council of Institutional Investors
Editor Council of Institutional Investors
Abstract CII supports shareowners’ discretion to employ a variety of stewardship tools to improve corporate governance and disclosure at the companies they own. These tools include casting well-informed proxy votes; engaging in dialogue with portfolio companies (including with board members, as appropriate), external managers and policymakers; filing shareholder resolutions; nominating board candidates; litigating meritorious claims; and retaining or dismissing third parties charged with assisting in carrying out these activities.
 

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Title ICGN Global Governance Principles
Date 2017
Author International Corporate Governance Network
Editor International Corporate Governance Network
Abstract The GGP is focused around company governance and how board directors should promote successful companies, thereby creating sustainable value creation for investors while having regard to other stakeholders. The GGP should be read alongside the ICGN Global Stewardship Principles (GSP) which set out best practices in relation to investor governance and stewardship obligations, policies and processes.
 

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Title ESG Shareholder Engagement and Downside Risk
Date November 2018 (Revised in 2020)
Author AFA 2018 paper - European Corporate Governance Institute – Finance Working Paper No. 671/2020
Andreas G. F. Hoepner, Ioannis Oikonomou, Zacharias Sautner, Laura T. Starks, Xiaoyan Zhou
Abstract We examine whether engagement on environmental, social and governance (ESG) issues can benefit shareholders by reducing firms’ downside risk, measured using the lower partial moment and value at risk. Using a proprietary database, we provide evidence supporting this hypothesis. We further find that the measured risk effects vary across engagement success and engagement themes. Engagement appears most effective in lowering downside risk when addressing environmental topics (primarily climate change). We find corroborating evidence in that successful engagement reduces the firm’s exposure to a downside‐risk factor.
 

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Title Disruption by technology. Impacts on politics, economics and society
Date September 2020
Author Philip Boucher, Naja Bentzen, Tania Lațici, Tambiama Madiega, Leopold Schmertzing and Marcin Szczepański
Abstract This analysis from the European Parliamentary Research Service briefly reviews how the development and application of technology can disrupt several areas of politics, economics and society.
It focuses on seven fields: the economic system, the military and defence, democratic debates and the 'infosphere', social norms, values and identities, international relations, and the legal and regulatory system. It also presents surveillance as an example of how technological disruption across these domains can converge to propel other phenomena.
 

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Title Business and the Ethical Implications of Technology
Date June 2019
Author Kirsten Martin, Katie Shilton, Jeffery Smith
Abstract While the ethics of technology is analyzed across disciplines from science and technology studies (STS), engineering, computer science, critical management studies, and law, less attention is paid to the role that firms and managers play in the design, development, and dissemination of technology across communities and within their firm.
Although firms play an important role in the development of technology, and make associated value judgments around its use, it remains open how we should understand the contours of what firms owe society as the rate of technological development accelerates. We focus here on digital technologies: devices that rely on rapidly accelerating digital sensing, storage, and transmission capabilities to intervene in human processes.
This symposium focuses on how firms should engage ethical choices in developing and deploying these technologies.
 

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Title Ethics & Artificial Intelligence in Finance
Date April, 2019
Author Dr. Alex LaPlante
Abstract This report introduces AI and details issues of bias, interpretability, and data security and privacy as they relate to the ethical use of AI algorithms by financial institutions. It also discusses the key risks that can arise from the unethical use of AI and the considerations that should be made in order to manage these risks throughout the development and implementation stages.
 

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Title Big tech and societal sustainability: an ethical framework
Date March, 2020
Author Bernard Arogyaswamy
Abstract This paper lauds the benefits and addresses the harm wrought by the high tech giants in Information and Communication Technologies (ICTs). The search for rapidly growing revenues (and shareholder returns and stock prices) drives firms to accelerate product innovation without fully investigating the entire gamut of their impacts. As greater wealth accrues to the leaders of tech firms, inequalities within firms and societies are widening, creating social tensions and political ferment. User involvement and activism, and shareholders’ concerns for the sustainability of societies on whose continued prosperity they depend, are imperative to humanity’s ability to decide the future direction of technology.
 

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Title The Ethics of Digital Well‑Being: A Thematic Review
Date January, 2020
Author Christopher Burr, Mariarosaria Taddeo, Luciano Floridi
Abstract This article presents the first thematic review of the literature on the ethical issues concerning digital well-being. The term ‘digital well-being’ is used to refer to the impact of digital technologies on what it means to live a life that is good for a human being. The review explores the existing literature on the ethics of digital well-being, with the goal of mapping the current debate and identifying open questions for future research. The review identifies major issues related to several key social domains: healthcare, education, governance and social development, and media and entertainment. It also highlights three broader themes: positive computing, personalised human–computer interaction, and autonomy and self-determination. The review argues that three themes will be central to ongoing discussions and research by showing how they can be used to identify open questions related to the ethics of digital well-being.
 

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Title Demography, Unemployment, Automation, and Digitalization: Implications for the Creation of (Decent) Jobs, 2010–2030
Date July 2018
Author David E. Bloom, Mathew McKenna & Klaus Prettner
Abstract Globally, an estimated 734 million jobs will be required between 2010 and 2030 to accommodate recent and ongoing demographic shifts, account for plausible changes in labour force participation rates, and achieve target unemployment rates of at or below 4 percent for adults and at or below 8 percent for youth. The facts that i) most new jobs will be required in countries where “decent” jobs are less prevalent and ii) workers in many occupations are increasingly subject to risks of automation further compound the challenge of job creation, which is already quite sizable in historical perspective.
Failure to create the jobs that are needed through 2030 would put currently operative social security systems under pressure and undermine efforts to guarantee the national social protection floors enshrined in the Sustainable Development Goals (SDGs).
 

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Title European Commission Report on the Impact of Demographic Change
Date June 2020
Author European Commmission
Abstract This report presents the drivers of demographic change and the impact they are having across Europe. It will help identify how the people, regions and communities most affected can best be supported to adapt to changing realities – through crisis, recovery and beyond.
 

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Title ECONOMIC CONSEQUENCES OF DEMOGRAPHIC CHANGE
Date 2018
Author Banco de España – Annual report
Abstract This report focuses on the economic and social consequences of the decrease in the working-age population in developed countries (particularly in Spain) affecting not only the social policies designed to protect the older population (pension benefits, health and long-term care) but also the functioning of the goods and services markets, the labour and financial markets and the macroeconomic (monetary and fiscal) policy transmission mechanisms.
 

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Title On the Impact of Demographic Change on Growth, Savings, and Poverty
Date August 2016
Author Marcio Cruz, S. Amer Ahmed
Abstract Changing population age structures are shaping the trajectories of development in many countries, bringing opportunities and challenges. While aging has been a matter of concern for upper-middle and high-income economies, rapid population growth is set to continue in the poorest countries over the coming decades. At the same time, these countries will see sustained increases in the working-age shares of their population, and these shifts have the potential to boost growth and reduce poverty.
This paper describes the main mechanisms through which demographic change may affect economic outcomes and estimates the association between changes in the share of working-age population with per capita growth, savings, and poverty rate. An increase of one percentage point in the working-age population share is found to be associated with an increase in gross domestic product per capita growth by more than one percentage point, with similarly positive effects on savings and poverty reduction.
 

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Title The circular economy: a transformative Covid-19 recovery strategy
Date October 2020
Author Ellen MacArthur Foundation (Morlet, Bierot, Wachholz, Gueye and Venho)
Abstract Covid has supposed a challenge to the linear economy. The publication proposes circular economy as an instrument to decouple economic growth and as possibility of a more resilient recovery. The paper includes ten attractive circular investment opportunities across five key sectors of the built environment, mobility, plastic packaging, fashion, and food. Furthermore, there are references for Policy makers.
 

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Title Circular Economy Business Models with a Focus on Servitization
Date October 2020
Author Han, Heshmati and Rashidghalam
Abstract The paper presents service-led growth as part of innovative business model within the circular economy that presents ‘product as service model’. It is an alternative to linear economy that authors describe as “take-make-use-dispose”. It includes definitions of circular and references to other business models in circular economy such as reuse and refurbish. It offers a practical example of the case of Hyundai Automotive Enterprise in Korea.
 

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