ESG Fund articles

We expect more capital for climate transition strategies, with 2026 likely to focus on physical climate risks.

While opportunities abound across the energy value chain, renewables may come onstream the fastest.

The more chaotic the political backdrop becomes, the more we are seeing governments spend.

While investors face a volatile outlook, shaped by technological change and geopolitical fragmentation, there are strategies available to mitigate shocks.

Energy price shocks may boost fossil fuels in the short term, but they tend to accelerate the shift towards cleaner energy and the infrastructure that supports it.

Climate change and the energy transition are multi-decadal themes that are shaping the world we live in, with wide-ranging implications for investors.

The International Court of Justice has ruled that countries are legally obligated to protect our climate and prevent harm to it. What are the implications for business and investments?

Focus not just on achieving financial returns, but also on how investments impact society.

How understanding market dynamics and research led insights help us guide clients through a fast-evolving responsible investment environment.

Beyond Transition: Navigating physical climate risks.

At Sarasin, we believe investors have both the responsibility and the influence to shape a safer AI future. Advocating for ethical AI through persistent engagement, coalition-building, and public advocacy is needed to ensure that technology serves society, not the other way around.

How Nature Poses Investment Risks and Opportunities. Biodiversity is gaining prominence in fundamental investment analysis across asset classes, based on a deeper understanding of its importance as a potentially material issue for investors.

Shifting from reducing financed emissions to financing reduced emissions. Using practical examples, this paper sets out how we can evolve the approach to net-zero investing to achieve the dual objectives of delivering decarbonisation in the real economy while optimising returns for clients and beneficiaries.

Falling markets are not new, but that does not stop the sense of panic that grips investors in every rout. So here is some data that can help you keep a cool head amidst the tumult.

The announcement in the White House Rose Garden of sweeping “reciprocal” tariffs has now brought clarity, of a sort. The rates and scope applied, to friend and foe alike, are more aggressive than even the most hawkish commentators had anticipated.

Highlights from the latest sustainability policy milestones that are shaping the investment industry.

Renewable energy presents investors with opportunity and complexity.

While reshoring doesn’t feature among the circular economy’s traditional refrain of ‘reduce, reuse, recycle’, it does act as a catalyst to promote a host of circular solutions. With a strong focus on IT, AI and industrials as well as domestic suppliers, the circular economy strategy is well positioned to capture the short and long-term growth of reshoring waves.

Mega forces, or structural shifts like the rise of artificial intelligence, are reshaping economies. BlackRock stays risk-on as they look for transformation beneficiaries. Learn more about their big investment calls for 2025.

Portfolio Manager Andrew Mattock, CFA, assesses the key components of the growth measures announced by the central bank and financial regulators in terms of their potential impact on the economy and the Chinese equity market.

From potentially brand-damaging ethical risks to regulatory uncertainty, AI poses challenges for investors. But there is a path forward.

On the road to COP28, closing the project preparation gap should take centre stage.

It is not possible to recycle most fabrics with current methods, meaning millions of tons of fast fashion clothes that are thrown away each year end up in landfill.

More than ever before, Asia Pacific producers are key players in the global clean energy revolution. But with geopolitical tensions rising and the threat of disruption looming ever larger, Gam Investments’ Meera Patel explores factors behind the risks and opportunities for investors in a region harnessing the might of the green economy to bolster its long-term economic prospects.

Rich economies are benefiting from higher growth with modest inflation thanks to a surge in immigration. That could boost companies’ earnings potential – and investment returns.

The latest thought leadership piece from Morningstar Sustainalytics delves into the materiality of ESG factors, analyzing their influence on business viability and investment strategies. 

We share some of the highlights from the past year that led to significant improvements in environmental protection, corporate governance, and transparency.

Investors are now becoming more knowledgeable, cautious and less naive in their approach to tackling climate change. That’s the main message from the Robeco Global Climate Investing Survey 2024, which shows greater realism on the long road to a low-carbon world.

As we said in December: There haven’t been this many attractive investment choices to consider in more than a decade.

Mega forces are big, structural changes that affect investing now - and far in the future. This creates major opportunities - and risks - for investors. This article outlines the five mega forces.

“The 3D Reset” refers to the three “Ds” of decarbonisation, demographics and deglobalisation. We believe these ongoing trends have had and will continue to have massive long-term implications for the global economy.

This article explains the EU’s Sustainable Finance Disclosure Regulation (SFDR) in a technical and detailed format.

CIO Sean Taylor discusses his investment outlook for the year ahead and how he sees 2024 unfolding for emerging markets, regionally, economically and thematically.

The key trends to look out for in science, technology and sustainability over the next 12 months – and beyond.

Half a century of academic research finds that in most cases, companies that apply ESG principles tend to be higher quality and financially superior. Curiously, results are less robust for investment portfolios. We look at possible resolutions to this conundrum and also explain why our convictions on ESG and investments are as strong as ever.

Our research paper shows why a ‘just transition’ matters, highlighting actions that companies, governments and investors need to take to make it happen.

Key takeaways from T. Rowe Price's 2024 Global Market Outlook.

Human ingenuity and responsible investment are crucial to addressing climate change and resource depletion. Concern about our use of the world’s finite resources is by no means new.

Greening the construction industry has become a priority but it's not clear whether the transition represents an investment opportunity. This year's The Klosters Forum sought to resolve this conundrum.

Better late than never, the world is waking up to the urgent threat to biodiversity and natural capital. Investors have a crucial role to play in the fight to maintain vital ecosystems - and a huge opportunity to seize.

Investing in companies that support the transition towards net zero brings its own trade-offs. We asked portfolio managers Chris Berkouwer and Yanxin Liu how they are making the strategy work.

We have seen the notion of shareholder primacy take the lead across the globe and become the base argument for governance of the corporate world.

Investors need to understand the scale and scope of nature’s economic contribution, the wide-ranging nature dependencies of key industries, and the various ways in which nature-related adaptation can be effective. In this paper on climate adaptation, various industries and their dependency on nature are looked at.

As of today, we have used up the planet’s natural capital budget for the year. What does this mean for investors?

abrdn's Chief Sustainability Officer describes four big sustainability trends that will shape the way people invest for decades to come.

Society is calling for protection against the threats posed by AI. Incorporating AI considerations into investors’ ESG analysis of companies will help.

For a number of reasons, we are moving to a world where natural resources previously taken for granted are becoming scarcer.

Finding alpha in sustainability. Asset owners and their stakeholders increasingly expect to achieve their financial goals while ensuring positive non-financial results for future generations as well. The key question is whether it’s possible to do both.

Reducing food waste has typically been described as a “triple win” – for the economy, for food security, and for the environment. But with respect to the wide-ranging implications of food waste for companies, we should consider adding a fourth “win” as investors can draw financial benefits as well.

Investors can achieve the greatest positive impact with their capital by focusing on four key themes.

As companies attempt their transition to a net-zero world, we sat down with Ben McEwen, Climate Analyst at Sarasin & Partners, to understand more about what the high-carbon transition means for investors and how we assess the credibility of companies’ climate claims.

Morningstar’s Guide to Sustainable Investing sheds light on the different approaches professional investors and managers can use to make more-informed decisions that align with investors’ sustainability motivations and objectives.

What the Global Biodiversity Framework means for companies, investors, and nature outcomes.

The landmark UN deal on tackling biodiversity loss aims to place businesses and investors in the front line in the battle to protect nature.

Sustainable investing has been challenged on many fronts over the last 12 months and we expect conditions to remain volatile in 2023.

The plunge in growth stocks since the equity market highs of 2021 has been remarkable, providing an attractive entry point into a number of long-term structural growth themes and recession-resistant businesses.

The events affecting the food system from 2020-22 have been remarkable, and may become more widespread. Tackling this brings investment opportunities.

Investment creates opportunity – the opportunity to change things for the better. To not only create a better future for you and your family, but also for the communities around us, the environment we live in and the industries that shape our society.

Strategists at J.P. Morgan Asset Management shared their views on why investors are paying more attention to ESG factors and how ESG factors can be incorporated into investment decision making.

As markets start to price in an inflation inflection point, how can multi-asset investors adapt?

Gam Investments’ Mark Hawtin considers the future of food and explains why it looks set to be one of the most exciting prospects for the next 10-15 years.

Mining is a good example of the complexities involved in decarbonisation. As some miners opt to sell coal assets, BHP is instead winding down one of its Australian mines. Discover why we are applauding this decision.

Waste management has long been one of society’s primary challenges. It’s an industry that’s ripe for disruption given how little it’s changed over the last few centuries.

As the economic glass starts to clear we explore the host of opportunities for long-term thematic investors in our latest House Report.

Investors in China can positively influence the behaviour of Chinese companies and generate attractive risk-adjusted returns in the long run.

Sustainable investing continues to gain momentum and the case for considering ESG factors remains as strong as ever. From consumers to policymakers, many economic actors are backing sustainability—creating a powerful portfolio opportunity.

This growing environmental problem is increasingly a focal point for policy at national and international level.

Whether it is refillable toothpaste tubes or recycled plastic bottles, big global businesses like Colgate, Nestle and Unilever are starting to create the products and solutions the world will need for a future without plastic waste. The problem is no one is quite managing to go fast enough.

In just a few years, ESG investing has grown in prominence. How can investors capitalize on this trend? What is ESG? The use of environmental, social and governance factors to inform investment decisions.

What does active ownership really mean in practice? Experts from Schroders' sustainable investment team explain.

As the world moves from pledges to plans, it is critical we tackle the question of climate holistically. Living with climate change will mean coping with the impacts on water and taking the necessary steps to reduce the vulnerabilities of communities and economies.

Portfolio managers Velislava Dimitrova and Cornelia Furse take a look at the companies offering solutions to monetise unwanted items and extend the lives of products, outlining the environmental benefits and investment opportunities this is creating.

While some progress was made at COP26, it is clear that there is a large credibility gap between words and actions.

Real momentum is building in the environmental, social and governance space. Policymakers are raising the bar; corporates are responding to consumer trends; and the financial services industry is finding its voice. As progress accelerates, 2022 will be the year in which ESG aspirations meet implementation.

An investor’s guide to the year ahead across environmental, social and governance (ESG) factors - including the key themes of deforestation, the just transition and double materiality.

To help identify modern slavery risk, a thoughtful research framework is an important tool. It enables investors to prioritize all the companies in a portfolio’s universe—not just those currently held in the portfolio—based on their potential exposures

It has never been more important for investors to play a role in protecting and promoting the world’s natural capital.

Single materiality considers the impact of climate change on the company; double materiality considers the impact of the company on climate change. Head of investment strategy Henry Boucher unravels the conflicts in ‘double materiality’ and where to draw the ‘moral’ line.

Covid-19 hasn’t eclipsed issues of equality at work, it’s underscored their importance. Equality for women requires thinking about equality at home and along supply chains.

The power of active engagement: We believe companies should be held to account on supply chain management - alongside other environmental, social and governance issues – and therefore continue to push our investee companies to act appropriately in order to protect and enhance long-term value.

Investment Marketing Analyst Jon Lockyer, looks to dispel the notion that Environmental, Social and Governance (ESG) investing is a passing trend.

Smaller companies aren’t usually associated with good ESG practices. But dig deeper and the story is often different.

Most nations have today accepted the challenge to cut greenhouse gas emissions to net zero by 2050. However, if we have any intention to reach this goal, incorporating a circular economy will both be a necessity and also represent some of the easiest opportunities we will have to cut emissions.

Discover the ESG implications of investing in the emerging market dairy industry.

Fidelity International’s ESG Analyst Survey 2021 reveals that, while many companies report their ESG activities accurately, significant numbers continue to overpromote their ESG performance. To get a true picture of each company’s sustainability credentials, corporates and investors must adopt a consistent global ESG standard.

Discover how human activity threatens the ocean and how investors can drive sustainable solutions.

The Covid pandemic has brought renewed focus on the social aspects of ESG investing. How can asset managers incorporate human rights into their approach? And what value does this add?

While technology is key to driving economic growth, there are a number of ESG factors that responsible investors should be aware of. Sarasin’s analysts Josh Sambrook-Smith and Kwai San Wong take us through these issues.

The concept of sustainability is rapidly rising up the agenda within the fashion industry. Yet while consumers are increasingly interested in sustainable fashion, they are not willing to pay a premium for it. Still, sustainability can be a competitive advantage.

In March 2021, the European Union's Sustainable Finance Disclosure Regulation (SFDR) comes into force which imposes ESG disclosure and transparency requirements on investment management firms who market their funds within the EU. Here, Robeco provide insight on the implications of the new regulation.

In this paper, Invesco team explores food production and consumption’s position within the nexus of nature. They draw on expert insights from and interviews with representatives of Invesco and FAIRR, the foremost investor network in this space, to examine the issue through the prism of responsible investing.

A narrow focus on money is unsustainable. Too often finance has been isolated from sustainability and social and environmental concerns, placing the needs of the present above those of future generations. Henry Boucher, Chairman of the Sarasin & Partners Investment Strategy Group, explains in the Raconteur Sustainable Investment report recently published in The Sunday Times.

Covid-19 has disrupted the food sector's supply chains and is set to change consumer eating habits for good. Pictet’s Thematic Advisory Board share their views on post-pandemic shifts in food industry.

In this article, Steve Freedman, Pictet’s head of sustainability and thematic research, explains how Biden’s ambitious environmental agenda will change the complexion of the battle against climate change, especially in the clean energy industry.

The first nine months of 2020 contained the first broad-based market crash, and recovery, of the sustainable investing era, and provided fertile ground for research into the relationship between sustainability and performance. Fidelity International re-tested their sustainability ratings and carried out a research update to take in the market recovery from April 2020 onwards.

The transition to a low-carbon global economy is driving growth and investment opportunities, but measuring carbon impact is key. Read the latest Q&A with the strategy’s portfolio managers.

Schroders’ Global Investor Study 2020 reveals investors’ views on how companies behave and who should be responsible for mitigating climate change.

This month marks the fifth anniversary of the launch of the United Nations' Sustainable Development Goals (SDGs), a universal call to action to end poverty, protect the planet and ensure all people enjoy peace and prosperity by 2030. M&G Investments' SDG reckoner represents our assessment of progress towards delivering the goals, highlighting where ambition needs to be scaled up, and focusing on the role impact investors have to play in addressing these challenges.

Sarasin look at the global economy and the effects of both deflationary and inflationary forces, which are critical to asset markets and clients as they budget for the years ahead.

An RL360 survey has shown an upward trend in Environmental, Social and Governance (ESG) investing among savers in the last 12 months.

The recent controversy over the working conditions at UK clothing brand Boohoo has brought the practices of fast fashion back into the spotlight. As clothing makers churn out affordable designs at an ever-faster pace, the environmental and social costs of the fast-fashion industry are becoming clearer to both consumers and investors - and having an impact on valuations. European equities manager, Matthew Siddle looks at how investors can navigate these issues and discusses the importance of constructively engaging with the industry.

A selection of tools and materials from Pictet Asset Management will help you or your clients get started on the environmental investing journey. These include a quiz, environmental impact calculator, e-module, articles, and environmental impact calculator.

Schroders clarify what some of the commonly misunderstood sustainability terms mean.

The assumption that shareholder returns should be maximised at any cost has been challenged by Covid-19, further embedding sustainable investing as a future destination for asset flows. Head of Equities - Asia and Lead Cross-Asset Strategist of Schroders explore the drivers behind this transformation and their consequences for investors.

Schroder’s Investment Director David Docherty explains what thematic investing is and the growing appeal of this type of investing.

Veganism takes a bite out of traditional food consumption. Jeneiv Shah, co-portfolio manager for Sarasin Food & Agriculture Opportunities, discusses how investors have an important part to play in this transformation.

Philippe Rohner, senior investment manager of the Pictet Water fund, highlights the importance of better water provision, the current imbalance between supply and demand and the potential opportunities.