Environmental, social and governance (ESG) factors are material to sovereign creditworthiness and investment performance, according to the Principles for Responsible Investment (PRI).
PRI has released a discussion paper exploring the link between ESG factors and credit risk in the US%47 trillion sovereign debt market. Asset owner such as pension funds invest in sovereign debt because of a perceived lower risk profile – the PRI cites a 2013 study by Towers Watson that found the average pension fund has 34% of its portfolio in fixed income.
The content you are trying to access is only available to subscribers. There are several options available to you if you want to view this content, from full subscriptions to temporary passes just for this article. Click here for more information.
Latest posts by Rachel Alembakis (see all)
- Investors seeking ESG themes, factors in fixed income portfolios - July 1, 2016
- Good Shepherd Microfinance to open Queensland Good Money sites - July 1, 2016
- 90% of ASX200 companies report on sustainability: ACSI - July 1, 2016