Emerging markets (EM) are using low-cost renewables to cut fuel imports, stabilize power costs and improve energy security—positioning EM as the growth engine of the energy transition. Countries and companies that leverage their dominance in critical minerals and green technology could pull ahead, creating dispersion in potential outcomes for investors.
The European Union (EU), pursuing ambitious decarbonization goals, is significantly recalibrating its emissions compliance regime with the Carbon Border Adjustment Mechanism (CBAM). This new border tax intends to promote fair competition amid varying emissions rules and costs. Our research suggests it could also offer insight into profitability as the rising costs to meet carbon limits weigh on corporate financial health, creating winners and losers.
The United Nations (UN) warns of a roughly US$4 trillion annual shortfall in financing for its sustainable development goals—a gap too large for the public sector to fill alone.
New research connects intensifying natural perils to their future implications for asset classes.
The materiality of ESG factors differs across sectors and markets. Investors need to understand how.
Blended finance has the potential to transform overlooked markets into investable opportunities.
Measuring the effectiveness of ESG-labeled bonds can be a challenge, particularly with “outcome bonds,” which have specific environmental or social goals but lack standardized assessment criteria.
A new approach to environmental, social and governance (ESG) research could ease investors’ frustrations with sourcing and evaluating the data required for objective credit analysis. Thanks to a surge in company reporting, ESG metrics can now be quantified and incorporated into analyses that were historically rooted in fundamental research alone.
Investors face an urgent challenge in understanding, analyzing and managing biodiversity risks.
Investors need to understand the potential physical damage from natural hazards before they can assess their financial implications.
Just six metrics can effectively assess sovereign issuers’ sustainability and provide guidance for both issuers and investors.
Progress toward a sustainable world would be hamstrung without the backing of global banks and their sponsorship of green and sustainable bonds.
Corporate bonds that fund environmental, social and governance (ESG) initiatives continue to capture investor hearts and minds. But ESG-labeled bonds come in different stripes, so investors need to discern among the good, the bad and the occasional ugly ones merely posing as ESG bonds.
As global warming worries approach critical mass, corporate bond investors expect issuers to be part of the solution.
More securities labeled as environmental, social and governance (ESG) bonds are being issued by a wider variety of companies than ever before.
Environmental, social and governance (ESG) factors are all important to the sustainability of an investment.
As one of the fastest-growing bond sectors, emerging-market (EM) corporate debt has become too big to ignore. With US$2.7 trillion outstanding across more than 600 companies, it’s now larger than the entire EM sovereign sector and is equal to the US-dollar and euro high-yield markets combined.
The shift to electric vehicles means major changes across the supply chain and involves multiple ESG challenges. As the auto industry strives to institute sustainable practices, investors need to engage with governments and corporates to encourage and accelerate the process of change.
