ESG News

The capitalization rate, desirability of location and now, environmentally-sound factors, could be guiding real estate investment decisions in the future. If you’re talking to an audience that’s mainly from the U.S. or Asia, the financial indicators are a little more influential in the way those conversations are actually happening.

Environmental, social and governance (ESG) funds are beginning to see new issues arise in prominence and this could affect how said funds choose which topics come into the forefront, according to a recent State Street Global Advisors Stewardship Report. "In 2018, we observed that social issues such as gender diversity, pay equality, wage strategies, sexual harassment in the workplace and worker retraining are raising in prominence as emerging ESG issues facing companies," noted Rick LacailleGlobal, Chief Investment Officer at State Street Global Advisors. Based on a survey of subscribers to Creditflux, an Acuris company, the common notion that investors primarily seek funds for performance didn't apply to environmental, social and governance (ESG) themed investing.

According to a State Street Global Advisors (SSGA) survey, 46% of investors link environmental, social and governance (ESG) to fiduciary responsibility. According to Rakhi Kumar, head of ESG investments ...

One theme that is emerging is the impact of environmental, social and governance (ESG). One of those breakout funds is the iShares ESG MSCI USA Leaders ETF (SUSL). SUSL seeks to track the investment results of the MSCI USA Extended ESG Leaders Index, which is a free float-adjusted market capitalization weighted equity index designed to reflect the equity performance of U.S. companies that have favorable environmental, social and governance ("ESG") characteristics.

The growth of environmental, social and governance (ESG) funds is not relegated to simply growing in size, but the actual definition is expanding as well. While climate and sustainability still dominate topically, factors like health and wellbeing benchmarks have been formally added to the GRESB Real Estate Assessment (the ESG benchmark used by the real estate industry worldwide).

The rise of environmental, social and governance (ESG) has investors constantly asking for funds that support the initiatives of environmentally-sound practices, but it could be taking a toll on coal. In world where emissions regulations are getting more stringent, this also puts the coal industry in a bind. “It still varies dramatically based on the investor, but pension funds and endowments who hand over capital to third party asset managers are pressing more and more for ESG standards, and it’s impacting securities prices as some funds refuse to invest outright in certain companies, with coal being one of the dirtiest sectors,” said a high yield portfolio manager in a Forbes report.

The rise of environmental, social and governance (ESG) funds is now drawing the attention of the Securities Exchange Commission (SEC) just as the topic became one of the most searched financial terms in 2019, according to a 401(k) Specialist post. Now that the ESG space is gaining traction, the SEC is putting the industry under the proverbial microscope with the issuance of examination letters to various firms. “The SEC initiative is based out of the agency’s Los Angeles office,” said a Wall Street Journal report.

Now, it’s almost imperative that investment firms, large or small, embrace ESG or be subject to underperformance, according to index provider MSCI. The rise of ESG has investors constantly asking for funds that support the initiatives of environmentally-sound practices. Additionally, it’s also drawing the scrutiny of the Securities Exchange Commission (SEC) at a time when ESG became one of the most searched financial terms in 2019, according to a 401(k) Specialist post.

The growth of environmental, social and governance (ESG) funds is not relegated to simply growing in size, but the actual definition is expanding as well. While climate and sustainability still dominate topically, factors like health and wellbeing benchmarks have been formally added to the GRESB Real Estate Assessment (the ESG benchmark used by the real estate industry worldwide). Real estate is becoming a key purveyor of promoting health awareness as part of ESG efforts.

Momentum is building for environmental, social and governance (ESG) investing strategies, particularly those in the ETFs wrapper. That trend should benefit funds, such as the FlexShares STOXX US ESG Impact ...

For investors interested in ESG initiatives, sometimes they have to strike a balance between performance and the company’s level of involvement when it comes to ESG issues. However, data used from indexing ...

As the environmental, social and governance (ESG) ETFs landscape flourishes, investors have more options for reaching asset classes beyond domestic equities. The FlexShares STOXX Global ESG Impact Index ...

Environmental, social and governance (ESG) is becoming an integral part of the investment space and as more investors clamor for funds that hone in on these initiatives, ETF providers are scrambling to give the people what they want. One of these areas is alternative energy, which will allow ETFs that center on wind and solar power to come into focus. "Coal and natural gas have been fighting for the top spot in the U.S. generation market for the last 20 years," wrote Charles Fishman in Morningstar.