Novethic has published an analysis of the social and environmental impact approaches that have emerged in the field of responsible investment. Often structured around the Sustainable Development Goals (SDGs), their positioning builds bridges between the traditional categories of responsible investment and impact investing.
Novethic Research Centre, the responsible investment expert, has been evaluating and quantifying the French market since 2001. This year, the research centre is upgrading its analysis to focus on the part of the market where integrating Environmental, Social and Governance (ESG) issues into asset management has the greatest impact on the portfolio mix. High-impact SRI combines SRI and themed funds. These 122 funds, which are displaying real momentum, make up nearly 20% of the SRI fund market in France.
Novethic’s annual survey, carried out with the FIR, divides responsible investment strategies into three categories according to the impact of the ESG analysis of issuers on the composition of the portfolio. The “High-impact SRI” category, with highly significant impact, represents €54 million in AuM.
This exclusive study, produced with the support of ADEME, analyses the European green funds market’s trends. The research centre reviewed a selection of 165 funds, that are available in 16 countries and now hold assets of € 22 bn thanks to a 47% growth over the past 3 years. The study analyses the funds’ environmental themes, the companies in their portfolios and what attracts investors to this type of investment.
Green bonds, which are used to raise funds for environmental projects, are a fast-growing sector with strong investor interest. What do investors want from these bonds? What guarantees do they look for? Novethic’s research centre has carried out the first study of its kind, surveying a representative panel of investors with a combined €7.7 billion in green bonds to explore buyer sentiment towards this new market.
By signing the Montréal Carbon Pledge, investors commit to measure the carbon footprint of their investment portfolios and disclose this on an annual basis. The Pledge was launched on September 2014 at PRI in Person in Montréal, and it has attracted commitment from over 120 investors with over US$10 trillion in assets under management. In this study, conducted in partnership with the PRI, Novethic draw up a progress report on the climate disclosures of the signatories between the COP21 and the end of June 2016.
Article 173 of the Energy Transition Law is an innovative law. By adopting it, France becomes the first country to introduce disclosure requirements for asset owners on their management of climate-related risks, and, more broadly, on the integration of ESG parameters in their investment policies. This could transform the French responsible investment industry. Novethic offers an overview of this law and its implications. This paper constitutes a useful set of guidelines to help investors and observers understand this complicated new measure.
The COP 21 conference is the stage for UN climate negotiations among countries and has elicited unprecedented involvement by economic and financial players. For more than a year now, Novethic has been analysing and quantifying the move to incorporate the climate into financial management, and has prepared four quick guides to ending coal investments, green financing, carbon risk and climate commitments of the systemic banks and insurance companies.
Novethic has published the last updated of its exclusive study “Investors acting on climate change”. The last edition highlights and scans an exclusive panel of 960 investors worth € 30 trillion of assets who have made steps forward to tackle climate change. During the last 8 months, their number has almost increased twofold.