Sustainable and responsible investing has become a global phenomenon driven by investors, investment managers and rating agencies. The concept of sustainable investing has become an integral part of the financial world. But investors are finding it increasingly hard to keep up with the complexity of global businesses and the array of company, financing and supply chain risks they might encounter, many of which fall under the umbrella of ESG factors
As a consequence, there is now a strong demand for rigorous SRI and ESG products which can help investors identify, assess and manage ESG risks and opportunities within their portfolios. However, it still remains a challenge to assess and measure the ESG risks of an investment fund or investment mandate effectively.
Therefore and based on the tremendous interest in our last year’s ESG Market Insights Study, we did go ahead again with the analysis for 2016 – however, taking the increased market involvement into account, with even more data and more funds on a broad level. Once again, all mutual funds are considered for the ESG investment ratings whether they actively incorporate ESG criteria in their investment policy or whether the ESG content is managed passively. 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.