While blockchain initiatives are still at an early stage of development across most sectors, Morningstar Sustainalytics has developed a framework to help identify companies that are well positioned to integrate this technology into their ESG strategies, in its thematic research report entitled “An ESG Lens on Blockchain and Public Equities.”The research created a model fund of funds (FOF) based on 10 blockchain-themed ETFs and compare its ESG risk profile with that of a global equities index.
Christian DiClementi: Patrick, many investors say that ESG—environmental, social and governance—concerns, are too specialized, too difficult to quantify, especially in emerging markets. What’s AllianceBernstein’s view?Patrick O’Connell: We do feel that ESG risks are difficult to quantify, but all investing is a difficult activity. We think that ESG considerations can be done in emerging markets through the opacity in the sector by using a 360-degree view. Talking and engaging with multiple stakeholders, creating a very holistic viewpoint and then quantifying that very challenging ESG information using a proprietary framework. Even though ESG has only become topical recently, we’ve got a track record of doing this for the last six years.
Pension funds should face legal obligations to bring their investments in line with the net zero greenhouse gas emissions goal, the film-maker Richard Curtis has said.Curtis, a co-founder of the Make My Money Matter campaigning group, urged ministers to follow up the UK’s legal commitment to reach net zero emissions by 2050 by making it mandatory for pension schemes to align their portfolios with the target.
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. A suite of MSCI environmental, social and governance indices outperformed their non-ESG parent despite surging energy stock prices last year, but analysts say the findings deserve careful scrutiny. Researchers from MSCI examined the performance of the MSCI All Country World Index, the provider’s flagship broad global equity index of more than 2,900 large- and mid-cap stocks, and compared performance with five ESG versions of the index.
Banks are increasingly vying to establish their ESG credentials in a very competitive marketplace, in the wake of last year’s COP26 climate talks and as they look to differentiate in the year ahead.For the first time, a full list of banks’ credentials has been compiled, carried out by East & Partners.