ESG and Sustainability

The rise of ESG factors in investment decision making will have a dramatic impact on returns and opportunities in the 21st century. A recent survey by LGT Capital Partners and Mercer showed that 57% of respondents believe that incorporating ESG standards into investment decisions will raise returns. Just 9% argued they reduce returns on investment.

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French Pension Fund Dodges U.S. Treasury Market

ESG Concerns Shun the World’s Most Liquid Market A French pension fund and several other ESG funds are shunning the U.S. Treasury market. The funds found fault this week with the United States government and listed reasons for divestment. According to Bloomberg, ESG funds at Erste Asset Management, Joh. Berenberg Gossler, and Union Investment are leading the trend.  French pension fund lists reasons for Uncle Sam divesting These groups listed concerns about U.S. policy on nuclear weapons, climate change, capital punishment, and more. These factors have fueled an exodus from the most liquid market on the planet. “ESG-dedicated investors would usually avoid or question investments in U.S. Treasuries,” said Rupini Deepa Rajagopalan at Berenberg. That fund oversees 36.7 billion euros. This asset manager cited U.S. stances on nuclear weapons and climate change as reasons to avoid the U.S. bond markets.  The report also listed the $36 billion French Public Service Additional Pension Scheme as another firm bailing on the U.S. A spokesperson listed capital punishment as a reason for the divestment. Will ESG funds struggle?  As we noted Tuesday morning, the sudden rush of ESG standards and funds feels familiar and concerning. Recently, British analyst Daniel Litvin expressed our concerns perfectly. As…

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University of California: “Fossil Fuel Assets a Financial Risk”
September 19, 2019

The University of California Pension and Endowment funds will divest all fossil fuel assets. That’s because fossil fuel and coal and oil sands posed a “long-term risk” to the University…

Japanese ESG Investments Outperforming Benchmarks
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ACP to Launch ESG Alternative Investment Funds
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Why This Hedge Fund is Betting on Climate Change
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Robert Gibbins’ Autonomy Capital thinks investors are ignoring the implications of climate change at their own peril