The state of sustainable investments in key emerging markets: synthesis report

The report is intended as a summary and synthesis of country reports on the state of sustainable investing in key emerging markets, namely China, India, Brazil and Turkey. In general, the authors have defined sustainable investments as investments that incorporate environmental (E), social(S) and governance (G) factors into the investment processes. The reports primarily investigate sustainable investments through the supply of financial capital to publicly listed firms in the form of equity investments through the stock markets, using strategies that incorporate environmental, social, and governance (ESG) risks into the investment process, with a long-term perspective. These investments can be purposefully ESG-inclusive and marketed as such (theme-based or labelled), or they can include ESG factors somehow in the processes without explicitly referring to sustainability-related factors. The reports also consider the supply of financial capital in various classes and forms to listed and privately held firms with a consideration of the investment’s impact on economic and social development or on investors’ values

Rating the Raters: Evaluating how ESG Rating Agencies Integrate Sustainability Principles

Environmental, social, and governance (ESG) rating agencies, acting as relevant financial market actors, should take a stand on working towards achieving a more sustainable development. In this context, the objective of this paper is, on the one hand, to understand how criteria used by ESG rating agencies in their assessment processes have evolved over the last ten years and, on the other hand, to analyze whether ESG rating agencies are contributing to fostering sustainable development by the inclusion of sustainability principles into their assessment processes and practices according to the ESG criteria. This research is based on a comparative descriptive analysis of the public information provided by the most representative ESG rating and information provider agencies in the financial market in two periods: 2008 and 2018. The findings show that ESG rating agencies have integrated new criteria into their assessment models to measure corporate performance more accurately and robustly in order to respond to new global challenges. However, a deep analysis of the criteria also shows that ESG rating agencies do not fully integrate sustainability principles into the corporate sustainability assessment process

Responsible Investment: A Vehicle for Environmentally Sustainable Economic Growth in South Africa

This paper explores whether any investment products or strategies in South Africa take environmental sustainability into account. By looking at how environmental, social, and governance (ESG) criteria are used in investment decision making, we found that most socially-responsible investment products and responsible investment strategies largely focus on infrastructure, development, and black economic empowerment. Environmental criteria do not yet receive comparable attention from South African asset managers and owners. Mainstreaming responsible investment principles will need to come from either an increase in demand for such practices by asset owners or from company positions on ESG issues.responsible investment, socially responsible investment, pension funds, asset managers, screening, active share ownership

Semi-automated creation of converged iTV services: From macromedia director simulations to services ready for broadcast

While sound and video may capture viewers’ attention, interaction can captivate them. This has not been available prior to the advent of Digital Television. In fact, what lies at the heart of the Digital Television revolution is this new type of interactive content, offered in the form of interactive Television (iTV) services. On top of that, the new world of converged networks has created a demand for a new type of converged services on a range of mobile terminals (Tablet PCs, PDAs and mobile phones). This paper aims at presenting a new approach to service creation that allows for the semi-automatic translation of simulations and rapid prototypes created in the accessible desktop multimedia authoring package Macromedia Director into services ready for broadcast. This is achieved by a series of tools that de-skill and speed-up the process of creating digital TV user interfaces (UI) and applications for mobile terminals. The benefits of rapid prototyping are essential for the production of these new types of services, and are therefore discussed in the first section of this paper. In the following sections, an overview of the operation of content, service, creation and management sub-systems is presented, which illustrates why these tools compose an important and integral part of a system responsible of creating, delivering and managing converged broadcast and telecommunications services. The next section examines a number of metadata languages candidates for describing the iTV services user interface and the schema language adopted in this project. A detailed description of the operation of the two tools is provided to offer an insight of how they can be used to de-skill and speed-up the process of creating digital TV user interfaces and applications for mobile terminals. Finally, representative broadcast oriented and telecommunication oriented converged service components are also introduced, demonstrating how these tools have been used to generate different types of services

Social impact as an intangible driver in assessing economic value: an application to the italian third sector

Many studies have focused on Intellectual Capital (IC) applied to the Third Sector in the past few years. Despite the growing interest in intellectual capital in the field, the concept remains unclear. Few scholars and practitioners deal with the subject, however, as far as we know there are no studies that show the relationship between social impact generated by non-profit organizations and IC. This is the first study to be focused on this topic. This paper aims to fill the gap in the literature and demonstrate the relation between social impact and IC in the Social Work Integration Cooperatives (SWICs). This paper contributes to the literature by theoretically arguing that the measurement of social value improves SWICs’ economic value as a consequence of improvements of relationships and trust with external stakeholders (intangible assets). To ground our theoretical hypothesis, we measure the social impact value achieved by Italian SWICs through an aggregate analysis. That is the starting point and the findings can generate further research from both non-profit practitioners and scholars through the measurement of hypotheses over time

From Ideas to Practice, Pilots to Strategy: Practical Solutions and Actionable Insights on How to Do Impact Investing

This report is the second publication in the World Economic Forum's Mainstreaming Impact Investing Initiative. The report takes a deeper look at why and how asset owners began to include impact investing in their portfolios and continue to do so today, and how they overcame operational and cultural constraints affecting capital flow. Given that impact investing expertise is spread among dozens if not hundreds of practitioners and academics, the report is a curation of some -- but certainly not all -- of those leading voices. The 15 articles are meant to provide investors, intermediaries and policy-makers with actionable insights on how to incorporate impact investing into their work.The report's goals are to show how mainstream investors and intermediaries have overcome the challenges in the impact investment sector, and to democratize the insights and expertise for anyone and everyone interested in the field. Divided into four main sections, the report contains lessons learned from practitioner's experience, and showcases best practices, organizational structures and innovative instruments that asset owners, asset managers, financial institutions and impact investors have successfully implemented

EXPORT PERFORMANCE OF ENVIRONMENTALLY SENSITIVE GOODS : A GLOBAL PERSPECTIVE

In this paper I examine whether stringent environmental standards reduce the international competitiveness of environmentally sensitive industries using a comprehensive dataset of trade flows of environmentally sensitive goods (ESGs) disaggregated at the four-digit level of the Standard International Trade Classification. The data relate to the period from 1965 to 1995 and cover 34 countries which accounted for nearly 80 per cent of world exports of ESGs in 1995. The important empirical finding is that export performance of ESGs for most of the countries remained unchanged between the 1960s and 1990s despite the introduction of stringent environmental standards in most developed countries in the 1970s and 1980s. Thus the claim that higher environmental standards reduce the international competitiveness of ESGs can not be justified in the light of available data.environmentally sensitive goods, ESGs, Standard International Trade Classification, competitiveness

Environmental, social and governance disclosures in Europe

Purpose – The purpose of this paper is to shed light on the European Union’s (EU) latest regulatory principles for environmental, social and governance (ESG) disclosures. It explains how some of the EU’s member states are ratifying the EU Commission’s directives on ESG reporting by introducing intelligent, substantive and reflexive regulations. Design/methodology/approach – Following a review of EU publications and relevant theoretical underpinnings, this paper reports on the EU member states’ national policies for ESG reporting and disclosures. Findings – The EU has recently revised a number of tools and instruments for the reporting of financial and non-financial information, including the EU’s modernisation directive, the EU’s directive on the disclosure of non-financial and diversity information, the EU Energy Efficiency Directive, the European pollutant release and transfer register, the EU emission trading scheme, the integrated pollution prevention and control directive, among others. Practical implications – Although all member states are transposing these new EU directives, to date, there are no specific requirements in relation to the type of non-financial indicators that can be included in annual reports. Moreover, there is a need for further empirical evidence that analyse how these regulations may (or may not) affect government entities and big corporations. Social implications – Several EU countries are integrating reporting frameworks that require the engagement of relevant stakeholders (including shareholders) to foster a constructive environment that may lead to continuous improvements in ESG disclosures. Originality/value – EU countries are opting for a mix of voluntary and mandatory measures that improve ESG disclosures in their respective jurisdictions. This contribution indicates that there is scope for national governments to give further guidance to civil society and corporate business to comply with the latest EU developments in ESG reporting. When European entities respond to regulatory pressures, they are also addressing ESG and economic deficits for the benefit of all stakeholders.peer-reviewe

The Consequences of Mandatory Corporate Sustainability Reporting

We examine the effect of mandatory corporate sustainability reporting (MCSR) on several measures of social responsibility using both country and firm-level data. Using data for 58 countries, we show that after the adoption of MCSR laws and regulations, the social responsibility of business leaders increases and both sustainable development and employee training become a higher priority for companies. Moreover, for companies in countries with MCSR, corporate governance improves and on average, companies implement more ethical practices, bribery and corruption decrease, and managerial credibility increases. These effects are larger for countries with stronger law enforcement and more widespread assurance of sustainability reports. We complement the country-level analysis using environmental, social and governance metrics at the firm-level in conjunction with a differences-in-differences research design and we find that for the treatment group, energy as well as waste and water consumption significantly decline, while investments in employee training significantly increase after the adoption of MCSR laws and regulations.sustainability reporting, mandatory reporting, corporate sustainability, corporate social responsibility

Impact at Scale: Policy Innovation for Institutional Investment With Social and Environmental Benefit

Explores policy options to maximize impact investing opportunities for institutional investors and accelerate the development of impact investing practices and products. Presents case studies of and insights from investors and service providers