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.
To read more of this article, please subscribe to The Sustainability Report
Latest posts by Rachel Alembakis (see all)
- ASIC issues report on payday lending - March 27, 2015
- Climate Bonds Initiative looks to China’s green bond market - March 27, 2015
- Inflection Point CM to launch Carbon Zero fund - March 27, 2015