How different is ESG from Impact Investing?

With ESG, investment managers integrate the E, S and G factors into their traditional financial analysis process when evaluating the investment eligibility of an equity or bond to generate positive sustainable returns. Impact investing often refers to private equity strategies, where the investor has board representation and has a direct impact on the management ofContinue reading “How different is ESG from Impact Investing?”

How to determine an investment manager’s ESG commitment level?

There are some key areas to consider: Frequency of staff training on ESG issues Availability of ESG research tools ESG integration into an investment decision The level of transparency in the ESG report Top-down or bottom-up ESG approach Extent of senior management involvement Be aware of “green washing”, where investment managers make misleading claims aboutContinue reading “How to determine an investment manager’s ESG commitment level?”

Do ESG Funds have a rating?

There are a number of independent ESG fund rating providers with each adopting different rating methodologies. Morningstar, a well-known provider of investment research, set-up Morningstar Sustainability RatingTM, which rates mutual funds and exchange traded funds. MSCI, the world’s largest provider of ESG indices, has established the MSCI ESG Fund Rating, which measures the ESG characteristicContinue reading “Do ESG Funds have a rating?”

Are there ESG Benchmarks?

There are many ESG benchmark indices which can suit the various objectives of sustainable and responsible investing. Companies that are constituent members of these indices are chosen based on their performance across environmental, social and governance factors. The vast number of ESG indices allows investors to select customised benchmarks that align with their objectives. TheseContinue reading “Are there ESG Benchmarks?”

How to select an ESG Fund?

Decide which ESG values matter most to you before shortlisting the relevant ESG funds. Next, read the fund’s investment prospectus for more information on the fund’s objectives. Find out how the fund’s manager screens for companies and check the fund’s holdings to ensure it is aligned with the objectives. Just as is the case forContinue reading “How to select an ESG Fund?”

Why is ESG Important?

The term ESG was formalised in 2005 following an initiative to incorporate the factors associated with the three pillars – Environmental, Social and Governance – in capital market investments. ESG has become increasingly important to the investment community on the premise that integrating these factors will in the long-term lead to sustainable economies. Environmental impact from business activitiesContinue reading “Why is ESG Important?”

Is there a standard set of ESG metrics?

There is no standard set of ESG metrics. Nevertheless, certain industry – and sector-specific ESG performance indicator standards have been developed to provide a framework for investment managers. There are several ESG data providers that help investors gain a better understanding of the risks and opportunities faced by compliance by assigning ESG scores. Institutional investorsContinue reading “Is there a standard set of ESG metrics?”

The Little Guide to Leadership by Tony Benitez – Episode 4

Leadership is a personal journey built on your own personal truths, which continue to shape you. Leadership is who you are. In this four-part animated video series, Tony Benitez, Chief Operations Officer, shares his leadership learnings consolidated from his 25 years of experience in insurance. In this fourth and final episode, Tony warns of theContinue reading “The Little Guide to Leadership by Tony Benitez – Episode 4”