FTSE Russell has launched its first ESG Risk Adjusted Index, which is based on the FTSE UK index series and aims to reflect index trends while improving ESG characteristics and maintaining similar risk return characteristics
In order to facilitate investors, financial advisors, and sales personnel to understand, evaluate, and compare these investment products, the CFA Institute has launched the ESG Information Disclosure Standards for Investment Products, aiming to provide a voluntary ESG disclosure standard for investment products and promote the development of the financial industry
International asset management company Amundi has announced the launch of a series of net zero strategy ESG funds, aimed at investing in companies that have performed well in low-carbon transition and striving to achieve the global net zero emissions target by 2050
To meet the needs of investors and establish a consistent framework for analyzing, measuring and tracking the climate strategy by companies, the Asian Infrastructure Investment Bank and Amundi Asset Management jointly developed a climate change investment framework
The United Nations Principles for Responsible Investment (PRI) releases the Due Diligence Questionnaire (DDQ) for fixed income investors, aiming to provide investors with an application template for responsible investment based on the fixed income perspective and provide supplement information for the overall PRI reporting framework
S&P Dow Jones Indices launches the world’s first commodity-based climate index S&P GSCI Climate Aware Index, which aims to maintain the inflation sensitivity of commodities and diversification gains while providing a lower climate footprint than the benchmark S&P GSCI Index
The European Sustainable Investment Fora (Eurosif) issues a document giving comments on the guidelines of the European Securities and Markets Authority (ESMA) on the naming of ESG funds
Morningstar launches the Global Sustainable Activities Involvement Indexes, which combines the United Nations Sustainable Development Goals (SDGs) with the revenue of listed companies to help investors choose investment targets that have more impact on the environment, society, and governance
Since United Nations Global Compact put forward the concept of Environmental, Social and Governance, the financial industry has always been an important driver of the development of ESG, and various types of ESG products have emerged in an endless stream. These products serve as a bridge between investors and companies, helping funds to be efficiently allocated to long-term assets.
Common ESG financial products include ESG bonds (such as green bonds, blue bonds, transition bonds, sustainable bonds, sustainable linked bonds), ESG funds and ESG indexes. Although these financial products are still facing problems such as greenwashing, they have indeed contributed to the development. Regulators are also trying to reduce the negative impact of these products.
ESG focuses on the improvement of long-term value, and ESG products are attracting long-term funds. In the current situation, balancing risk and return is an important topic, and ESG products will become an important choice for investors to allocate assets.
