All Technical guide articles – Page 3
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Technical guide
Step 4 - Investment policy and governance
Asset owners need to ensure that they have the necessary resources, expertise and processes in place to implement the strategy. They will typically codify their investment strategy in relation to their investment decision-making process, asset allocation, ESG incorporation, active ownership, manager selection and monitoring criteria through an investment policy. Some ...
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Technical guide
Step 3 - Strategy formulation
Asset owners need to decide how they are going to implement their investment principles in their asset allocation and risk management processes, and in their reporting.7 To do this, they need to define their ambitions (e.g. on financial return, risk appetite and ESG considerations) over an appropriate timeframe, and establish ...
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Technical guide
Step 2 – Investment principles and beliefs
Asset owners need to define investment principles to set the direction for their investment policy, investment practice and organisational culture. These principles help define how the asset owner will create investment value in the context of future uncertainty, risk and opportunity. They also help asset owners make practical decisions about ...
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Technical guideInvestment consultants and ESG: an asset owner guide
Investment consultants advise on how trillions of dollars are invested worldwide, but most consultants are failing to consider the role that ESG issues play in investment performance.
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Technical guide
Investment strategy
An asset owner’s overall investment process starts with crafting an investment strategy. Asset owners will aim to set out a clear and explicit investment strategy that comprehensively considers: A. the full range of short-term and long-term return factors (e.g. social, technological, economic, environmental and political/regulatory) affecting their portfolios; 5 B. ...
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Technical guide
Manager selection
Manager selection is a core component of most asset owners’ investment process. Investment managers should either act in accordance with an asset owner’s investment preferences (if running a separate client account) or offer funds that can fit within the asset owner’s investment preferences, potentially in combination with others. Selections require ...
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Technical guide
Step 1 – Fiduciary obligations
Asset owners and their fiduciaries need to understand and clarify the legal obligations towards their beneficiaries. These include fiduciary, ownership and other investor duties which, among other things, set out minimum standards for how ESG factors should be appropriately considered in setting an investment strategy. The asset owner should be ...
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Technical guideESG integration in Asia Pacific: markets, practices and data
Portfolio managers and analysts are increasingly incorporating environmental, social, and governance (ESG) factors in their investment analyses and processes.
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Technical guideResponsible investment in forestry
Forestry investors are exposed to a range of environmental, social and governance (ESG) factors. How those factors impact investments – ultimately, whether they materialise as risks or opportunities for value creation – depends largely on an investor’s responsible investment approach.
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Technical guideESG factors in forestry investing
Forestry investors must consider a range of ESG issues for both direct and indirect investments. Such issues may present material risks to forestry operations and the success of an investment if managed improperly.
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Technical guideNext steps: the future of forestry investing
The future of responsible forestry investing depends on how successfully the asset class can feature in the mainstream debates that are likely to shape the responsible investment universe in the coming years. Important questions to consider include:
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Technical guideAchieving the SDGs through forestry investing
In addition to climate impact, the strategies highlighted in the previous section also have an explicit focus on the broader tenets of sustainable development, and the involvement of local communities.
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Technical guideForestry as a climate investment
Beyond looking at ESG consideration from a risk and opportunity perspective, forestry investors and managers are increasingly seeking to generate positive impact in addition to market returns, particularly regarding issues such as climate change those related to the SDGs.
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Technical guideIntegrating ESG factors in the forestry investment process
The consideration of ESG issues should be an integral part of the forestry investment process, taking into account the long-term nature of forestry investing and the different stages of a forestry investment’s lifecycle.
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Technical guideForestry: a growing asset class
The total amount of global institutional investment in forestry has surged from an estimated US$10 billion-US$15 billion in the early 2000s to over US$100 billion today.
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Technical guideESG integration in Europe, the Middle East, and Africa: Markets, practices and data
Portfolio managers and analysts are increasingly incorporating ESG factors in their investment analyses and processes. However, ESG integration remains in its relative infancy, with investors and analysts calling for more guidance on exactly “how” they can “do ESG” and integrate ESG data into their analysis
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Technical guideRelating responsible investment to private debt
It is difficult to generalise about implementation of responsible investment in private debt as the latter comprises so many different investment strategies.
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Technical guideA framework for responsible investment in private debt
There are numerous ESG touchpoints at the various stages of the private debt investment process, as shown in Figure 10.
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Technical guide
Private debt and RI: guidance and advanced practices
The following section explores different responsible investment approaches, emerging industry trends and thought leadership in more detail, including:
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Technical guide
An overview of responsible investment
The six Principles for Responsible Investment are nonprescriptive and aspirational.
