• December 22, 2021

    ESG indices outperform their conventional indices

    Global equity markets witnessed a decline in the month of November, as investors took the flight to safety and resorted to safe haven assets, due to uncertainty stirred in the market by the new covid variant – Omicron. In times high uncertainty and vola tility, ESG indices displayed low beta relative to their comparative indices. Despite negative returns, ESG indices outperformed their conventional indices, apart from Japan that underperformed mildly for the month of November. ESG Indices performance Source: S&P;...

  • November 16, 2021

    Most ESG Indices are positive in October; ESG Instruments in GCC oversubscribed

    ESG is no longer driven by altruism. As we can see from the table, ESG index has mostly outperformed its parent index in countries like US, Japan and Canada. These attractive returns are luring investors towards instruments and institutions having higher ESG scores. One reason could be that higher ESG rated companies tend to perform well in the long term on account of better governance and are more sustainable. ESG Indices - Performance Source: Refinitiv Not only equities, the issue...

  • September 13, 2021

    Filling the gap in ESG framework: Saudi Arabia

    Saudi Arabia's sovereign wealth fund has asked banks to help it develop an environmental, social and governance (ESG) framework, as per a recent article in Reuters. According to the article, development of ESG framework was likely a precursor for a multibillion dollar bond sale, which would be the Saudi wealth fund's first. ESG has been one of the hottest topics in the world of finance. There is ample demand from investors for ESG compliant instruments but due to lack of...