Asset Pools : Institutional investment
- Align the design of pension and other investment systems with sustainability. Clarify fiduciary law and guidance and requirements for the skills and capabilities of fiduciaries. Build consumer literacy and require that funds report on sustainable performance and policies.
- Resetting market and public incentive structures would help stimulate demand for sustainable investment products. Market codes can encourage asset owners to align incentives down the chain, notably for investment consultants, asset managers and investment analysts. Policymakers could review the effective use of fiscal incentives for saving to drive long-term finance for the real economy.
This paper explores whether the extent to which Regulation 28, CRISA and JSE Integrated Reporting Standards (referred to as governance policy innovations) have influenced the level of investment that integrates Environmental, Social and Governance (ESG) in its decision making process. It finds that while governance innovations have increased actors’ awareness about interrelationship between ESG factors and financial performance it
The US financial system is undoubtedly among the largest, most innovative and most sophisticated in the world. It is also clear that this is both a benefit and an impediment to non-governmental investment in sustainability and inclusiveness. To date, the actual investment in infrastructure and sustainability does not meet current needs, especially those related to maintaining
China is supporting investment in developing countries through the BRICS Development Bank, the Asian Infrastructure Invesment Bank and the Silk Road Fund. It aims to draw upon the experiences and rules of other multilateral development agencies to ensure that this financing encourages environmentally and socially responsible investment. The paper offers some recommendations on how the BRICS Development Bank, the AIIB and the
This report is based on an analysis of investment practice and fiduciary duty in eight countries: Australia, Brazil, Canada, Germany, Japan, South Africa, the UK and the US. It is based on interviews, roundtables and webinars with asset owners, investment managers, lawyers and regulators and a comprehensive review of law and policy on fiduciary duty. The purpose of this
To date interventions to promote the environmental and social dimension of investment have focused principally on disclosure of policies and formal statements of legal duties. They have largely taken fundamental features of the design and operation of the financial system as given. This paper makes the case for a more systemic and dynamic approach. It argues
The report, a companion to the second edition of “The Financial System We Need”, examines how the international financial standards currently relate to the goals of sustainable development and explores opportunities for better alignment as a way to promote greater stability, resilience and fairness to the financial system. The key messages are: Financial standards have
This briefing summarises the discussions held during a roundtable for market and policy leaders in Washington, D.C. on 20 April 2017. The goal of the event was to explore pathways to scale and speed up green finance and to harness its benefits for long-term sustainable growth and competitiveness. The key messages are: Green finance made
Infrastructure is often referred to as the backbone of the global economy and plays a fundamental role in societies by enhancing the quality of life and increasing productivity. In addition to its effects on society and the economy, infrastructure can have significant impacts on the environment, depending on the choice of infrastructure. Approximately 75% of
This paper sets out the case for promoting the development of green industry funds as public-private partnerships (PPPs) to use limited government funding to leverage private capital into green sectors. It is envisaged that green industry funds will serve as the platform through which private capital can converge into professionally managed green investments with government as one investment
An efficient and resilient regulatory regime must not only deal competently with the financial system that exists currently; it must also have adaptive capacity to deal competently with the system that is emerging. This working paper examines disruptive innovations and their implications for the design of a green and inclusive financial system. It identifes five trends relevant
- Global Investor Survey on Climate Change. Annual Report on Actions and Progress 2011
Institutional Investors Group on Climate Change/ Investor Network on Climate Risk/ Investor Group on Climate Change (2011).
- The Role Of Institutional Investors in Financing Clean Energy
Kaminker, C., Stewart, F. (2012). OECD Working Papers of Finance, Insurance and Private Pensions No 23. Paris: OECD Publishing.
- Mapping Channels To Mobilise Institutional Investment In Sustainable Energy
OECD (2014). Paris. 9th February 2015.
- Policy Note on Pension Fund Financing for Green Infrastructure and Initiatives
- A Legal Framework for the Integration of Environmental, Social and Governance Issues Into Institutional Investment
Asset Management Working Group (2005). Geneva: UNEPFI.
- High-Level Principles of Long-Term Investment Financing by Institutional Investors
G20/OECD (2013). Paris: OECD Publishing.
- Promoting Long-Term Investment by Institutional Investors: Selected Issues and Policies
Della croce, R., Stewart, F. and Yermo, J. (2011). OECD Journal, Financial Market Trends Volume 2011 – Issue 1. Paris: OECD Publishing.
- Connecting the Dots Between Climate Change Goals, Portfolio Allocation and Financial Regulation
Dupré, S. and Chenet, H. (2012). Paris: 2 Degrees Investing.
- 2012 Global Sustainable Investment Review
Global Sustainable Investment Alliance (2013).
- Institutional Investors and Green Infrastructure Investments: Selected Case Studies
Kaminker, C., Kawanishi, O., Stewart, S., Caldecott, B. and Howarth, N. (2013). Paris: OECD Publishing.