ESG & Sustainable Investing

Ultimately, the fact that the Klockner deal is not marketed as a green loan but still includes ESG-related covenants is proof that ESG needs to be integrated into an investor’s credit work as a matter of course, something we have been arguing for years.

ESG investing was tipped to be the biggest theme of 2020 for financial markets, but was swiftly superseded by the COVID-19 pandemic, which has dominated investors’ thoughts since Q1. We thought it was important to revisit this topic and explore if and how the pandemic has changed the world of ESG.

Jack Daley discusses how we actively engage with companies on behalf of our clients to help transition to a more ESG responsible world.

A member of our Investment Grade team discusses the growth of green bonds over the last few years.

Elena Rinaldi discusses why ABS should be seriously considered by investors looking to invest on an ESG or sustainable basis.

Partner and Portfolio Manager Chris Bowie discusses whether a particular low volatility credit fund could have been managed on a sustainable basis, while still meeting its objectives

Gordon Shannon, Portfolio Manager, discusses momentum in ESG investing.

Sophia Papi discusses TwentyFour's CSR approach.

At TwentyFour, ESG - Environmental, Social and Governance - factors, are a critical component in our investment process. This video explains our approach to ESG integration at TwentyFour.

As with many things ESG related, interest in, and issuance of, green bonds is growing rapidly.

Graeme Anderson hosted abreakout session in the ESG tent where he discussed TwentyFour's ESG Integration model, how company behaviour affects our ESG scoring and how our Observatory relative value system has enabled us to build ESG analysis into the investment process the portfolio managers use every day.

Green bonds have seen dramatic growth both in terms of market size and media coverage in recent years. In 2019 we saw $237bn of issuance, a 62% increase on 2018’s $146bn, from a mixture of sovereigns, financials and corporates; and in its wake has come a proliferation of dedicated green bond funds.