With the launch of Jasper Colin’s publication “Building Sustainable Futures – Responsible Investing and Long-Term Impact”, the investment world is witnessing a paradigm shift towards sustainable investing. The report delves into the intricacies of the ESG landscape and reveals that ESG-compliant investments now present a more lucrative and competitive alternative to traditional allocations.
Companies Proactively Managing Their Net Footprint
Companies are increasingly integrating crucial social priorities into their investment analysis, placing Diversity, Equality & Inclusion (DI&E) goals at the core of their corporate structures. The report highlights the ESG payoff offered by global Exchange Traded Funds (ETFs) focused on thematic filtering, indicating the potential for substantial outperformance. In the Asia Pacific region, asset owners are reallocating portfolios and responsibly investing amid macroeconomic and geopolitical shifts.
Institutional Investors Taking Action
Institutional investors globally are taking action to better position their portfolios for the future, including increasing investments in infrastructure and private assets. A majority of institutions in the Asia Pacific region are planning to increase allocations to private equity and infrastructure. Most institutions are also dialing up inflation risk mitigation, with a majority expecting to employ inflation-fighting strategies for two or more years.
Amalgamated Bank’s Ethical Investment Decision
Amalgamated Bank decreased its stakes in Altria Group by 4.7% during the fourth quarter, reflecting a growing interest in ethical investing among institutional investors. The bank now owns 467,915 shares of Altria Group’s stock valued at $21,388,000. The trend towards socially responsible investments signals a shift towards ethical investments and is set to remain relevant in the coming years.
UK Government’s Green Finance Strategy
The UK government has published a Green Finance Strategy to support the transition to a resilient, nature-positive, net-zero economy. The strategy aims to make the UK the world’s first Net Zero-aligned Financial Centre. The government is working with public financing bodies to commercialize and finance green technologies needed for the transition and has established a UK Infrastructure Bank with £22 billion of capital to level up and decarbonize the economy.
Incentives and Barriers for Private Finance in Forest and Landscape Restoration
Incentives for corporations to finance restoration include mitigating climate change, enhancing the sustainability of supply chains, and impact and sustainability branding. Finance for net-emission-reduction commitments is a key incentive for corporations to finance the restoration. However, barriers such as a lack of knowledge about how different restoration interventions relate to emission reductions and uncertainties around the benefits different types of restoration projects deliver make it difficult for corporations to know where to channel funding.
