NSFM supporters in action: Will Oulton on ESG integration; John Mathews on financing the green economy; Raj Thamotheram on assessing sovereign bond ESG risk

Portfolio managers are failing on ESG integration, according to Mercer research out last week.

Only 9% of more than 5,000 ESG strategies analysed gained top ratings, based on the extent to which portfolio managers integrate ESG into the investment process and follow good stewardship practices.

Quoted in an article in the FT, NSFM supporter and European Head of Responsible Investment at Mercer, Will Oulton said: “Integrating ESG across all investment activity is the single biggest challenge for managers.”

 

Financing the transition to a green economy, a blog by NSFM supporter,John Mathews, for openDemocracy

By keeping investments in clean energy off the agenda, the Kyoto process delayed by a decade any serious engagement with global warming. To get the transformation of capitalism on its way, a serious rethink of eco-investment finance is essential.

No-one argues against the proposition that it was capitalism that created the global warming problem. But hardly anyone takes the next step to argue that it must therefore be capitalism that will solve the problem. How will it solve it? The answer is -- by financing the transition to a clean energy economy.

 

Investors urged to track ESG risks - MSCI have launched a new tool allowing investors to assess the exposure of their sovereign bond holdings to ESG issues. A timely development as Moody's put Austria, France and the UK on negative credit watch.

Quoted in an article in the FT, NSFM President, Raj Thamotheramsaid: “There’s little doubt that the traditional rating process for sovereigns is deeply flawed. What’s happening in Greece and the US, for example, is far from being a ‘new’ development.”