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Responsible investing through ESG has been globally driven by the COP21 or the Paris agreement, and the UN 2030 sustainable development goals. ESG factors and ratings took an established place in the finance realm. Indeed, the 2021 ESG assets market value was over $18.4 trillion worth of investments with a projected growth of 12.9% until 2026. [34]
Increasingly, responsible investors in New Zealand have shifted their focus from screening out harmful industries such as tobacco and armaments, to considering broader environmental, social and corporate governance (ESG) factors when investing. Impact investing has grown over 13 times from NZ$358 million in 2018 to NZ$4.74 billion in 2019.
While socially responsible investments are attracting greater attention, the universe of environmental, social, and governance bonds remain an underrepresented asset class in investment portfolios.
Scientists recommend including this climate factor in the risk assessment of bonds. The aim is, on the one hand, to increase the borrowing cost of brown bonds which can fund carbon-intensive projects and de-incentivise their investment by increasing the weight of climate risk.
Environmental, social, and governance (ESG) investing has been a force to be reckoned with in the capital markets the last few years, and it will continue to be one, especially with its growing ...
Environmental, social and corporate governance, or ESG, investing is on a downward spiral.
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