The year 2022 was a year of negative surprises in the investment markets and in the global economy. Hopes that the global economy would return to its pre-pandemic growth path faded when Russia started its invasion of Ukraine in February. As a result of the war, the prices of energy and agricultural commodities surged and caused an unexpectedly rapid increase in inflation during the latter part of the year.
We work with hundreds of asset managers every year, and we see greenwashing a LOT. Based on our experiences, we would like to reveal some common ESG pitfalls and help everyone recognize greenwashing better.
Corporate responsibility is nowadays an integral part of core activities of an institutional investor. The traditional method of implementing responsibility into the investment process has been negative screening, for example the exclusion of the non-responsible companies. How has the war in Ukraine changed our attitude towards blacklists as a tool of responsible investing?
Institutional investors are often blamed for short-termism. Short-term performance pressures on investors can result in an excessive focus on short-term market movements at the expense of investors’ long-term interests.
Lean, originally developed by Toyota Production Systems, has reached public awareness over the last few decades and lean doctrines have been widely utilized in operational process development. Would it be possible to implement lean thinking in decision-making as well?
Interest in responsible investment has seen an exponential growth over the past decade. Investments are pouring into ESG-based products at an accelerating rate. The trend is good, but not fully without problems.
The investment strategies of the various earnings-related pension insurance companies generally appear to be very similar. Would it be reasonable then to abandon the institutional decentralisation of investment activities within the earnings-related pension system if all of the pension insurance companies are anyway ending up with similar investment strategies?
Responsible investing has become a megatrend that is shaping the financial markets. There is a wide range of responsible investment opportunities available but comparing them is challenging. Responsibility cannot be measured with a ruler.
Diversification has decreased in the financial markets due to the growing central bank stimulus. Investors are hunting for yield in more risky and illiquid assets which tend to correlate with each other in distressed markets. Can slow-moving investments still bring diversification in ever-faster liquid markets?