All Thought leadership articles – Page 6
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Thought leadershipThe ESG in Credit Ratings Initiative
This is the second report in a three-part series and the output of a project which started in 2015 when, following an investor survey, the PRI assembled a working group to improve understanding of how ESG factors affect credit risk analysis.
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Thought leadershipESG, credit risk and ratings: part 2 - exploring the disconnects
Credit practitioners from investors and credit rating agencies (CRAs) are uniting to discuss environmental, social and governance (ESG) topics.
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Thought leadership
Investor recommendations for managing market short-termism
Below is an overview of recommendations, which are not comprehensive solutions, but aim to mitigate some of the most serious consequences of short-termism through changes in strategy and practice.
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Thought leadershipResponding to megatrends: Investment institutions trend index 2017
What is a megatrend? Most institutions share a common belief that megatrend dynamics will result in multidimensional transformations across society, technology, economics, environment and politics (STEEP). We would also strongly encourage this thinking about megatrends to be framed within the context of an integrated system of real-world powerful forces altering ...
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Thought leadership
The SDGs as a risk framework
Many investors across Europe and North America have already started looking at ways to use the SDGs as a risk management tool.
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Thought leadership
The SDGs will drive global economic growth
Growth in equity markets as a whole is ultimately driven by growth in the economy.
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Thought leadershipInvestors and the Sustainable Development Goals
Countries, NGOs, companies and investors are all needed to help achieve the 17 SDGs and the 169 underlying targets.
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Thought leadership
The SDGs are an unavoidable consideration for "universal owners"
Large institutional investors can improve their long-term financial performance by encouraging sustainable economies and markets.
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Thought leadershipThe SDG investment case
Why the SDGs are relevant to institutional investors, why there is an expectation that investors will contribute, and the case for why investors should want to.
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Thought leadership
The SDGs as a capital allocation guide
If investors believe that providing solutions to sustainability challenges offers attractive investment opportunities, they can implement investment strategies that explicitly target SDG themes and sectors.
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Thought leadershipCorporate and investor strategies for managing market short-termism
Short-term pressure is an obstacle to creating a global financial system that supports long-term value creation and benefits the environment and society, finds the PRI’s report, Coping, shifting, changing 2.0: Corporate and investor strategies for managing market short-termism.
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Thought leadershipESG, credit risk and ratings: part 1 - the state of play
Investors and credit rating agencies (CRAs) are ramping up efforts to consider environmental, social and governance (ESG) factors in credit risk analysis.
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Thought leadershipWhy ESG factors matter in credit risk analysis
Climate change, corporate scandals and the devastating effects of the global financial crisis are all stark reminders of why oversight, lack of transparency and accountability can negatively affect fixed income market pricing, volatility and, ultimately, financial stability.
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Thought leadership
Understanding credit ratings and ESG factors
It is important to understand what credit ratings actually measure, even if investors are familiar with credit rating agency rating scales: risks that affect fixed income instruments extend beyond credit risk, which is associated with the default probability of a borrower.
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Thought leadershipWhat rating agencies are doing on ESG factors
ESG factors are not completely new to credit analysis
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Thought leadershipHow investors are approaching ESG factors and credit risk
A majority of PRI signatories say they use some form of ESG approach when investing in FI instruments, but ESG consideration is still far from being an integral element of the credit assessment process.
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Thought leadership
Materiality and visibility of ESG factors in credit risk analysis
Many investors believe that CRAs should take a more proactive approach to highlighting ESG considerations in their analysis.
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Thought leadership
Environmental issues gaining traction
The COP21 Paris Agreement has contributed to renewed focus on environmental factors. Climate-related risks could diminish or increase, depending on how countries implement legislation and policies to fulfil their nationally determined contributions to reduce greenhouse gas emissions.
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Thought leadership
Communication and transparency
Many of the hurdles in the way of systematic and transparent incorporation of ESG factors in credit ratings and analysis can be ascribed to how credit risk-related information is conveyed.
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Thought leadershipIncorporating responsible investment in hedge funds
Investors are beginning to incorporate responsible investing criteria in their hedge fund allocations. Forward-thinking hedge fund managers already apply responsible investment practices and some have done so for years.
