Banks, fund managers, investors and insurers continue to position themselves to meet the challenges and opportunities arising from ESG issues, whether it is integrating climate change risk into investment analyses, assessing the potential for corruption in investment portfolios, Islamic microfinance models, green insurance products or market regulation.
Articles from leading experts in the Mar/Apr 2008 issue include:
Managing unavoidable climate change risks
The fact that climate change has such significant implications for companies means institutional investors have a clear interest in integrating an evaluation of the likely physical impacts of climate change into their investment analysis as an integral part of generating long-term returns for their clients.
Rory Sullivan
David Russell
My-Linh Ngo
Frank Curtiss
Responsible investment: avoiding corruption risk
A company’s reputational value is difficult to quantify, until it suffers damage. Corruption has a slow-burning fuse, with the potential to cause long-term damage to reputation and to adversely increase a company’s risk profile. It is in the interests of investors to assess the potential for corruption and related risk within their portfolio, in the same way as they would assess other potential liabilities.
Angela Rhydderch
Islamic contribution to microfinance
Islamic finance, microfinance and socially responsible investment share many principles not only because they focus on community well being but most importantly, because they all have the attributes of participation, risk sharing, social justice and financial inclusion through forms of partnership.
Robert McDowall
Insuring you go green
The insurance market rather than merely seeing ethical or environmental issues as a factor in determining risk is now seeing this as a commercial opportunity particularly in the ‘green’ space. For insurers and the wider financial services market, there is a huge opportunity for companies to embrace green or ethical products and embed these values within their operations.
Andrew McMillan
Energy targets herald investment opportunities
European Commission proposals will require EU member states to derive 20 percent more energy from renewable sources, make deeper cuts to CO2 emissions and improve energy efficiency levels by 2020. Regulation is a key driver in environmental markets. These proposals will require growth in renewable and energy efficient technologies and appliances to meet these targets - presenting both risks and opportunities for companies and investors.
