No sector unaffected by growing ESG demands
The evolving global ESG framework places social aspects at the centre of the project lifecycle – requiring decision-makers to take account of issues such as gender, human rights, vulnerability and livelihoods in development planning and implementation
Kilian pointed out that companies across the continent are expected to make more ESG progress on issues such as disclosure, integration and inclusivity as well as health, safety and climate change. Aside from the lender requirements, this impetus is also being driven by international sustainability frameworks such as UN Sustainable Development Goals and AU Agenda 2063 which are in turn influencing national legislation. Read more
Factor investing increase driven by ESG, risk management – study
Risk and return of factor portfolios are determined by factor exposures. Hence, if you replace stocks scoring poorly on ESG by those scoring well and keep these exposures, you maintain the same risk/return expectations, while likely enjoying a windfall profit from better performance through ESG
The COVID market correction in March 2020 was a wake-up call for fixed-income investors and has led to a greater focus on managing risks, for example through improving credit quality by adding a quality factor. Read more
Kerberos Capital Management Announces World’s First ESG-Linked Debt Product for Litigation Finance Markets
Kerberos Capital Management today announced the launch of a ground-breaking new direct lending product for law firms that includes a margin ratchet tied to ESG targets — the first of its kind in the Litigation Finance sector. The initiative is designed to recognise and reward companies who have already made a commitment to incorporating ESG factors into their work, as well as to encourage qualifying companies to continue their efforts in the future. Read more
Chief Finance Officers Pledge to Tie Debt to Sustainability
More than 60 multinational chief financial officers have tied about 50% of their companies’ financing to environmental, social, and governance (ESG) objectives. According to the Wall Street Journal, all are members of a UN task force that has vowed to tie half of all finance to ESG standards by 2025. Over 60 multinational chief financial officers have committed to tying nearly half of their firms’ funding to environmental, social, and governance (ESG) goals. All are members of a UN task committee, according to the Wall Street Journal, that has pledged to bind half of all finance to ESG principles by 2025. Read more
