Sustainable investing strategies vary. Some investors, for example, simply want to improve ESG alignment. Others seek to maximize their impact on society, by investing in those companies that contribute the most to certain goals. While the metrics that underlie these approaches have some overlap, there is not perfect correlation, in terms of how metrics are defined, how portfolios are constructed, what is being targeted, etc.
In this post we employed a “fact-finding” approach to examine the issue of how much exposure to a single SDG a portfolio can potentially achieve, and how that exposure is related to active risk. For this analysis we used the Axioma Worldwide Fundamental Equity Factor Risk Model – Medium-Horizon and the SDG contribution from the SDI AOP data as of July 1, 2021.
Using the United Nations’ Sustainable Development Goals (SDGs) as a framework for an impact-measurement approach can help understand and quantify companies’ real-world impact, a new whitepaper from Qontigo and Clarity AI argues. Such an approach enables investors to bridge an important gap at a time when impact has emerged as a key investment pillar, right next to risk and returns.
This is the second in a series of Qontigo and Clarity AI research papers, which focuses on the challenge of measuring impact as a key means of bridging the gap between impact investment theory and practice.
A panel at COP26 comprised of sustainability and index experts, including members of Willis Towers Watson and Qontigo, explains how the STOXX Willis Towers Watson Climate Transition Indices (CTIs) help investors manage climate-transition risk and align their investments for the economic transition to net zero.
When the Axioma Global Multi-Asset Class Risk Model (AXGMM) is combined with the industry-leading Axioma Portfolio Optimizer, the ability to track, tilt and hedge multi-asset class portfolios is exceptional. But its prowess in handling fixed income portfolios on their own should not be overlooked.