ESG Market Insights 2018 2018-10-30T17:55:44+01:00

Project Description

Voluntariness is drawing to a close

Sustainable and responsible investing has become a global phenomenon driven by investors, investment managers and rating agencies. However, the time of voluntariness is drawing to a close – ESG criteria are on the rise. Especially the EU Commission takes the matter seriously to support the transition to a low-carbon, more resource-efficient and sustainable economy and publishes in May 2018 for the first time concrete regulatory proposals on the implementation of their report “Sustainable Financing Action Plan Growth”, which were published in March 2018. This includes establishing a clear and detailed EU classification system – or taxonomy – for sustainable activities, disclosure obligations on how institutional investors and asset managers integrate environmental, social and governance (ESG) factors in their risk processes and the establishment of new category of benchmarks comprising low-carbon and positive carbon impact benchmarks.

Investment-Transparency is key

Investment-Transparency is key for the future, e.g. at the beginning of 2019 the new IORP II regulation (Institutions for Occupational Retirement Provision) come into force, which requires IORPs to take into account Environmental, Social and Corporate Governance (ESG) factors. As a consequence pension funds, fund managers, and investment advisors started thinking about how these new requirements can be cost-effectively integrated in their governance and risk management systems and how to effectively report on their ESG and climate activities.

The answer – the cost-effective reporting solution provides the answer for the upcoming mandatory regulation requirements. The 6th edition of the “ESG Market Insights Study” from creates transparency NEW for over 2,000 funds and ETFs. Based on the tremendous interest in our last year’s ESG Market Insights Study, we did go ahead again with the analysis for 2018 – however, taking the increased market involvement into account, with even more data, new ESG portfolio attributes and a couple of new innovations. This year’s study screens more than 2’000 mutual funds and ETFs for their ESG characteristics: Risk, Impact and Value. The ESG investment ratings are applied to each investment fund on yourSRI on a dynamic basis and, hence, reflect up-to-date investment views. The dynamic ESG investment ratings on yourSRI detect all relevant changes, related to the portfolio structure of a fund or to the ESG ratings of the underlying issuer. This permits timely investment reporting and investment controlling.

Together with our partners we endeavour to promote and raise awareness concerning trends and issues in the field of responsible investing, aiming for greater transparency, comparability and measurability. And that’s exactly the aim of this publication.