The evolution of ESG: how sustainable practices are shifting in developed credit markets – abrdn

abrdn have moved on from blanket exclusions to more forward-looking engagement. So what are the results?

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... This year marks the 20th anniversary of the introduction of the environmental, social and governance (ESG) concept in the UN Global Compact’s influential report 'Who cares wins'.

ESG issues have become mainstream investment concerns in the two decades since. Over that period, the application of the ESG concept has evolved significantly.

In this insight and research piece, abrdn set out some of the recent shifts they have seen in developed fixed-income credit markets. They detect three distinct yet interrelated trends in the recent application of ESG analysis:
  1. The growing role of social and environmental considerations.
  2. The role that regulation is playing in driving – and shaping – demand in credit markets.
  3. A shift from blanket exclusions towards more refined approaches that allow sustainability-minded investors to achieve greater real-world impact.

Learn more here