The document discusses sustainable finance and ESG investing. It notes that ESG assets have grown significantly in recent years, surpassing $35 trillion in 2020. Risk plays an important role in long-term investments. The agenda outlines topics experts will discuss, including the current status of sustainable finance, evidence on the financial resilience and performance of ESG companies, the role of sustainable finance in transitioning to a low-carbon economy, and whether sustainable finance requires more regulation or unified standards. The document defines sustainable finance as investment decisions that consider environmental, social and governance factors. It also notes there can be trade-offs for investors between returns from sustainability and financial returns or higher risks.

1. Sustainable Finance:
A trade off?
May 18 Wed, 2022,
17:00 – 18:30 BST (UK) / 12:00 – 13:30 EST (US)
ESG assets surpassed $35 trillion in 2020 up from $30.6 trillion in 2018 and $22.8 trillion in
2016 reaching a third of current total global assets under management, according to the
g g g g
Global Sustainable Investment Association. ESG assets crossing the $35 trillion mark is in-
line with BI’s own base-case scenario.
Risk plays a central role for investments with a long time horizon. Many empirical studies
show the advantages of ESG integration on the risks characteristics of individual asset
classes
classes.
ꞏ How does regulation emerging across the US, the EU, the UK, and Asia look like? Does it
help global asset managers understand the requirements across jurisdictions?
ꞏ How do Asset managers across Europe navigate a path through challenges, and build a
sustainable business model for a new era of ESG-focused investment?
ꞏ Is there a trade-off between growing value for investors and for society?
Agenda:
Subjectmatterexpertswilldiscuss:
1.Currentstatusofthesustainablefinance
1.Currentstatusofthesustainablefinance
2.FinancialresilienceofESG-mindedcompanies:isthereanystrongevidence?
3.WillstrongESG performanceleadstobetterrisk-adjustedfinancialperformance(financialalpha)?
4.Roleofsustainablefinanceinacceleratingtheshifttoalowcarboneconomy
5.Whataretheinvestment-gradeESG/Sustainabilitymetrics?
6 Sh ld t i bl fi b l t d ?
6.Shouldsustainablefinanceberegulatedmore?
7.Doessustainablefinancereallyneedaunifiedsustainabilityaccountingstandard(e.g.,International
SustainabilityStandardsBoard(ISSB) standard)?
8.Investmentthroughactiveownership:willitperformstakeholdercapitalism?

3. Sustainable finance refers to the process of taking ESG considerations into
account when making investment decisions in the financial sector leading to
Sustainable Finance
account when making investment decisions in the financial sector, leading to
more long-term investments in sustainable economic activities and projects.
- European Commission
Sustainable finance refers to the process of incorporating ESG factors into
financial decision-making.
- IOSCO (International Organization of Securities Commissions)
Sustainable finance is defined as investment decisions that take into account
ESG factors of an economic activity or project.
- Harvard University
Key Terms to Explore:
Investment
Investment
ESG factors/considerations
Financial decision-making

4. Sustainable Investments

5. Reference

6. EU Sustainable Finance Disclosure Regulation (SFDR) is the rules which aim
to make the sustainable investment funds more comparable and transparent to
Sustainable Finance Regulations
to make the sustainable investment funds more comparable and transparent to
investors of the funds by disclosure of the ESG outcomes of the investment
process based on the measurement/assessment of pre-defined metrics.

7. ESG Factors/Considerations
Source What is ESG Investing? https://bestpathforward com/what is esg investing/
Source. What is ESG Investing? https://bestpathforward.com/what-is-esg-investing/

8. Reference

9. Reference

10. Investing in ESG assets comes with certain trade-offs for investors, where on
one side are return on the sustainability value creations and on the other side
Financial Decision-Making: Trade-Off v. Balancing
one side are return on the sustainability value creations, and on the other side
are taking lower financial returns or higher risks.
*ESG Investing v. Impact Investing

11. Reference

12. Reference

13. Reference

14. Thank you!
Thank you!