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. To gain access to this article, please subscribe by clicking here.
Latest posts by Rachel Alembakis (see all)
- ACCR to lodge carbon disclosure resolutions for AGL AGM - July 24, 2015
- Super boards can add value with ESG focus: BNP Paribas - July 24, 2015
- Investors consider corporate pay links to climate change goals - July 24, 2015