Stockholm (NordSIP) – A new educational program about ESG investing – the Sustainable Investing initiative – was launched in cooperation between Morningstar, the leading provider of independent investment research, and the Money Management Institute this week (NordSIP, Financial Advisor). The SII will provide online resources and academic content for advisors and their clients. Morningstar also acquired a 40% stake in Sustainalytcis, the leading provider of ESG research and ratings (Markets Media).
In other research news, Analytics research company HIS Markit found in its most recent report that a record $950 million was invested into ETF Socially Responsible Funds in 2016, with 2017 shaping up to be an even better year, $800 million having been shifted to SRI funds YTD (NordSIP). Socially responsible funds now have a combined AUM of over $5.5 billion, the study finds.
In the UK, he first ever social impact bond which targeted the re-offending prisoners in Peterborough, UK, was declared a success by Social Finance and One Service, the two main organisations behind the initiative (NordSIP).
Meanwhile in the Nordics, Nordea issued a green bond worth €500 million, the use of proceeds of which will be to finance or refinance assets and loans with a positive environmental impact, while NOK 620 bn Storebrand AM Head of Asset Management Jan Erik Saugestad emphatically stated that “unleashing corporate pension fund trillions is key to achieving the (UN SDG’s) and to secure long-term profitability”, suggesting that with a limited 15-year time frame in which to act, norms about the relationship between profitability and ESG have not yet been shifted far enough, despite progress (NordSIP).
Before we depart to enjoy another day of wet summer rain in Scandinavia, we leave you this week with a blog post from Laura Nishikawa, MSCI Head of Fixed Income in ESG Research, who asks: how can institutions implement ESG principles without sacrificing diversification or abandoning efforts to improve corporate conduct (MSCI)?
Wishing you a good weekend,
Your NordSIP team
Picture (c) – NosorogUA—shutterstock
