Readers clicked most on “Applying Economics — Not Gut Feel — to ESG” by Alex Edmans in 2023.

The CFA Institute Research and Policy Center (RPC) focuses on 4 forward-looking analysis themes to drive content material engagement, motion, and outcomes. These themes are Capital Markets (Strengthening the Structural Resiliency of Capital Markets); Technology (Understanding the Latest Developments in Data Analytics, Technology, and Automation); Industry Future (Providing New Insights into the Future of the Profession); and Sustainability (Advancing the Industry’s Thinking on Sustainability Challenges).

The theme Advancing the Trade’s Considering on Sustainability Challenges covers an array of sustainable investing subjects, together with biodiversity, human capital, local weather threat, internet zero dedication points, and environmental, social, and governance (ESG) funding approaches and efficiency knowledge. CFA Institute analysis offers funding professionals with instruments and sources for understanding, measuring, and managing sustainability-related dangers and alternatives; assembly shopper calls for; and complying with regulatory necessities.

1. “Applying Economics — Not Gut Feel — to ESG”

Curiosity in ESG points is at an all-time excessive. Nonetheless, educational analysis remains to be comparatively nascent, typically main us to use intestine really feel on the grounds that ESG is simply too pressing to attend for peer-reviewed analysis. For the Financial Analysts Journal, Alex Edmans highlights how the insights of mainstream economics will be utilized to ESG, as soon as we notice that ESG is not any completely different from different investments with long-term monetary and social returns.

2. “An Exploration of Greenwashing Risks in Investment Fund Disclosures: An Investor Perspective”

Nicole Gehrig and Alex Moreno look at funding funds’ disclosures associated to ESG data by the lens of buyers to know the character of disclosure points that might give rise to a notion of greenwashing.

3. “Definitions for Responsible Investment”

This steering developed by CFA Institute International, Sustainable Funding Alliance, and Ideas for Accountable Funding (PRI), offers 5 key definitions for accountable funding phrases: screening; ESG; thematic investing; stewardship; and influence investing.

4. “Green Parity and the Decarbonization of Corporate Bond Portfolios”

Based mostly on an funding universe for the 2017 to 2021 interval, this examine by Mario Bajo and Emilio Rodriguez for the Financial Analysts Journal examines completely different methods that company bond buyers can apply to attain decarbonization objectives. The authors discover {that a} “Inexperienced Parity” technique yields one of the best efficiency.

5. “Guidance for Integrating ESG Information into Equity Analysis and Research Reports”

This information to integrating ESG data attracts from a variety of CFA Institute publications to current a framework for figuring out ESG data, assessing the materiality of ESG data, integrating ESG data into evaluation and valuation, and presenting ESG data in analysis studies.

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