The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
ESG

One size does not fit all, so investors need to work harder on ESG strategies

Markets need more sophisticated measurement criteria to cope with the surge in demand for ESG integration.

tape-measures-780.jpg



Every investor wants environmental, social and governance (ESG) exposure, but only the largest have the resources to comprehensively assess this for themselves.

As the demand for standardized measurement grows, fixed income in particular has a lot of work to do to catch up.

In January, index provider MSCI launched a series of new fixed income ESG and factor indexes, a recognition that investor demand for ESG integration in fixed income is rapidly outpacing current offerings.

Hitendra-Varsani-MSCI-160x186.jpg

Hitendra Varsani,
MSCI

“The indices were launched to meet client demand,” explains Hitendra Varsani, factor strategist at MSCI. “Clients want to target fixed income exposures that align with their own objectives and many global asset owners are demanding ESG integration.

“There has been strong growth in equities, but the choice in fixed income is relatively more limited.”

MSCI has operated an ESG Leaders Index in the equity markets for several years and is now applying it to fixed income. It is also launching an ESG Universal Index for fixed income.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree