Sustainability Rating Agencies vs Credit Rating Agencies
Sustainability Rating Agencies vs Credit Rating Agencies

Author: Daniel Cash

Publisher: Springer Nature

Published: 2021-04-16

Total Pages: 151

ISBN-13: 3030716937

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This book details the difference between the two rating industries, but this difference is converging all the time. The concept of investing in a more responsible and sustainable manner is drawing in some of the world’s leading investors and, with it, regulations and policies are developing at the highest levels. However, the market is not getting what it needs to fully submit to the concept of responsible investing. It has called for more to be done from those tasked with injecting information into their processes, and two industries in particular have been identified as being natural partners. It has been suggested that they are on a collision course to serve the mainstream investor, and in this book, that collision course is contextualised, explained, presented, and finally its outcome predicted.

ESG Rating Agencies and Financial Regulation
ESG Rating Agencies and Financial Regulation

Author: Daniel Cash

Publisher: Edward Elgar Publishing

Published: 2024-02-12

Total Pages: 169

ISBN-13: 103531505X

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ESG Rating Agencies and Financial Regulation presents an essential and nuanced understanding of rating agencies through the utilisation of signalling theory. Daniel Cash provides fresh insight on the role of ESG rating agencies in the financial market and explores the relationship between ESG and modern business practices to explain the continued drive for effective ESG rating agencies.

OECD Sovereign Borrowing Outlook 2021
OECD Sovereign Borrowing Outlook 2021

Author: OECD

Publisher: OECD Publishing

Published: 2021-05-20

Total Pages: 94

ISBN-13: 9264852395

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This edition of the OECD Sovereign Borrowing Outlook reviews developments in response to the COVID-19 pandemic for government borrowing needs, funding conditions and funding strategies in the OECD area.

The Role of Credit Rating Agencies in Responsible Finance
The Role of Credit Rating Agencies in Responsible Finance

Author: Daniel Cash

Publisher: Springer

Published: 2018-12-17

Total Pages: 133

ISBN-13: 3030037096

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This Palgrave Pivot aims to examine the bourgeoning relationship between the Principles for Responsible Investment and the Credit Rating Industry. Since May of 2016, when the partnership was initially publicised, the PRI have endeavoured to incorporate Credit Rating Agencies into its initiative via its ‘ESG in Credit Ratings Initiative’, and have been working diligently to find, and create common ground between Credit Rating Agencies and Institutional Investors seeking to be more forward-looking in their investment approaches. However, in recent years the ‘Big Two’ Credit Rating Agencies – Standard & Poor’s and Moody’s – have finally received record fines for their conduct in the run-up to the Financial Crisis. There is a need, then, to examine the incorporation of the Credit Rating Agencies into such a progressive initiative. To achieve this objective, this book examines the field of ‘responsible investing’, the credit rating industry, and the power dynamic that exists between the rating industry, investors, and the PRI (via its ‘Initiative’).

ESG Rating Agencies and Financial Regulation
ESG Rating Agencies and Financial Regulation

Author: Daniel Cash

Publisher:

Published: 2024

Total Pages: 0

ISBN-13: 9781035315048

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ESG Rating Agencies and Financial Regulation presents an essential and nuanced understanding of rating agencies through the utilisation of signalling theory. Daniel Cash provides fresh insight on the role of ESG rating agencies in the financial market and explores the relationship between ESG and modern business practices to explain the continued drive for effective ESG rating agencies. This cutting-edge book offers analyses of the latest regulatory endeavours involving ESG ratings while acknowledging the pitfalls of such agencies, including a lack of transparency and variant stakeholder preferences. Through the application of signalling theory, Cash concludes that while credit ratings agencies continue to prevail due to the sense of trust provided by the involvement of third parties in financial transactions, the same is not yet true of ESG rating agencies. Cash demonstrates that for these agencies to be truly efficient they must operate as an oligopoly, an approach that may seem uncomfortable to many. The book provides an up-to-date investigation of why a natural oligopoly is desired in the ESG rating space and summarises the consequences of this for both investors and regulators. Academics and students of financial law, economics, and financial sustainability will find this book to be an invaluable resource. Due to its practical implications, the book will additionally benefit sustainability-concerned regulators.

ESG and Responsible Institutional Investing Around the World: A Critical Review
ESG and Responsible Institutional Investing Around the World: A Critical Review

Author: Pedro Matos

Publisher: CFA Institute Research Foundation

Published: 2020-05-29

Total Pages: 82

ISBN-13: 1944960988

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This survey examines the vibrant academic literature on environmental, social, and governance (ESG) investing. While there is no consensus on the exact list of ESG issues, responsible investors increasingly assess stocks in their portfolios based on nonfinancial data on environmental impact (e.g., carbon emissions), social impact (e.g., employee satisfaction), and governance attributes (e.g., board structure). The objective is to reduce exposure to investments that pose greater ESG risks or to influence companies to become more sustainable. One active area of research at present involves assessing portfolio risk exposure to climate change. This literature review focuses on institutional investors, which have grown in importance such that they have now become the largest holders of shares in public companies globally. Historically, institutional investors tended to concentrate their ESG efforts mostly on corporate governance (the “G” in ESG). These efforts included seeking to eliminate provisions that restrict shareholder rights and enhance managerial power, such as staggered boards, supermajority rules, golden parachutes, and poison pills. Highlights from this section: · There is no consensus on the exact list of ESG issues and their materiality. · The ESG issue that gets the most attention from institutional investors is climate change, in particular their portfolio companies’ exposure to carbon risk and “stranded assets.” · Investors should be positioning themselves for increased regulation, with the regulatory agenda being more ambitious in the European Union than in the United States. Readers might come away from this survey skeptical about the potential for ESG investing to affect positive change. I prefer to characterize the current state of the literature as having a “healthy dose of skepticism,” with much more remaining to be explored. Here, I hope the reader comes away with a call to action. For the industry practitioner, I believe that the investment industry should strive to achieve positive societal goals. CFA Institute provides an exemplary case in its Future of Finance series (www.cfainstitute.org/research/future-finance). For the academic community, I suggest we ramp up research aimed at tackling some of the open questions around the pressing societal goals of ESG investing. I am optimistic that practitioners and academics will identify meaningful ways to better harness the power of global financial markets for addressing the pressing ESG issues facing our society.

The Law of ESG Derivatives
The Law of ESG Derivatives

Author: Ligia Catherine Arias Barrera

Publisher: Taylor & Francis

Published: 2024-07-05

Total Pages: 310

ISBN-13: 1040085482

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This book weaves together a comprehensive legal analysis of sustainable finance regimes governing Environment, Social and Governance (ESG) derivatives, with insightful sociological perspectives on risks and uncertainties. Sustainable finance offers a unique chance to channel capital towards sustainability goals, with ESG derivatives emerging as potent catalysts for a transition to a more sustainable economy. Beyond amplifying capital flow, they strategically align with effective ESG risk and uncertainty management. The book explores how integrating ESG derivatives can strategically serve sustainable investment, offering insights into optimal risk management. The work not only outlines challenges but presents potential solutions, highlighting ESG derivatives’ role in addressing market failures affecting sustainable finance, which is an aspect often overlooked by regulators in the EU, the UK, and the US. Serving as a strategy guide for countries adopting a diverse sustainable finance portfolio, the book targets policy practitioners and advocacy specialists, catering to a broad multidisciplinary audience amid the increasing interest in ESG-related products. The book’s dual emphasis on financial derivatives for ESG risk management and sociological perspectives positions it as an ideal resource for scholars, experts, practitioners, researchers, and curious minds across law, business, management, and sociological studies.

Responsible Investment in Times of Turmoil
Responsible Investment in Times of Turmoil

Author: Wim Vandekerckhove

Publisher: Springer Science & Business Media

Published: 2011-03-29

Total Pages: 251

ISBN-13: 9048193192

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The SRI phenomenon is said to be entering the mainstream of financial intermediation. From a fairly marginal practice promoted or campaigned for by NGO’s and at odds with financial practice and orthodoxy it grew into well formulated policy adopted by a wide range of investors. Academic literature on SRI has also boomed on the assumption that mainstreaming is taking place. However, little thinking has been carried out on questions specifically arising from this alleged ‘mainstreaming’. This book, addressed to those with a scholarly or practitioner’s interest in SRI, starts filling this neglected dimension. Today, one cannot ignore the difficulties of main stream financing. The financial spheres are trembling globally in one of the worst crises since the 1930’s. As a response to the crisis, the intermediation of ‘financial responsibility’ will undoubtedly be the subject of new regulation and scrutinizing. This book looks into what these turbulences will imply for SRI. In view of these circumstances, one might or even should, ask oneself whether the phenomenon was not an empty fad during the exuberant high of financial euphoria that came abruptly to an end with current financial crises. To put it rather sec: are financial intermediaries that promote ‘sustainability’ credible, while it is obvious that some developments in financial intermediation -predictably, as some say- were unsustainable? Is this an opportunity for enhancing SRI because of the strength and superiority it has developed or will it disappear due to a return to financial myopia? This book is the first to question the future of SRI in such a radical way.

Voluntary to Mandatory ESG Reporting
Voluntary to Mandatory ESG Reporting

Author: Peter Yeoh

Publisher: Kluwer Law International B.V.

Published: 2024-08-13

Total Pages: 200

ISBN-13: 9403503386

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Focusing on the impacts of environmental, social, and governance (ESG) matters, companies, financial institutions, and regulators are continually seeking sustainability-driven models and standards on ESG themes in the sourcing, design, and provision of products and services. This welcome and thoroughly researched book, by a well-known authority in corporate and financial services law, engages with developments in ESG soft and hard law as business responsibility shades into business accountability. The author offers a sweeping, in-depth consideration of the current and future role of ESG reporting and compliance, encompassing such issues and topics as the following: purpose and forms of regulation for non-financial reporting; mandatory ESG reporting implementation issues; role of the company board; recognition of threats posed by ‘greenwashing’ and similar tactics; clean energy versus sustainable supply chains; limits and weaknesses of ESG reporting; help from AI and other software solutions; and progress in the global quest for a universal ESG reporting standard. Although some companies retain their social and political licences to operate and thwart ESG, robust data and persuasive contentions worldwide show that deliberations on how best to promote global sustainability in the long term have become standard business practice. Accordingly, this book clearly demonstrates how including ESG in business decisions ultimately contributes to stable and predictable markets. Its insights and guidance will be greatly appreciated by all those needing to engage with ESG reporting, whether lawyers, investors, regulators, business stakeholders, or academics.

Values at Work
Values at Work

Author: Daniel C. Esty

Publisher: Springer Nature

Published: 2020-10-26

Total Pages: 246

ISBN-13: 3030556131

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Sustainable investing is a rapidly growing and evolving field. With investors expressing ever greater interest in environmental, social, and governance (ESG) metrics and reporting, companies face a sustainability imperative and the need to remake their business models to respond to an array of pressing issues including climate change, air and water pollution, racial justice, workplace diversity, economic inequality, privacy, corporate integrity, and good governance. From equities to fixed income and from private equity to impact-investing, investors of all kinds now want to understand which companies will be marketplace leaders in a business future redefined by sustainability. Thus, investment strategies, risk models, financial vehicles, applications, data, metrics, standards, and regulations are all changing rapidly around the world. In an effort to better understand the current status and movement of this dynamic field and to provide a practical reference for the growing pool of investors, financial advisors, companies, and academics seeking information on sustainable investing and ESG reporting, this edited book covers the latest trends, tools, and thinking. It showcases the work of authors from leading companies and academic institutions across a range of vital topics such as financial disclosure, portfolio assessment, ESG metrics construction, and law as well as regulation. Readers of the book will be better able to identify and address the hurdles to moving mainstream capital toward more sustainable companies, investments, and projects.