Perspectives in Sustainable Equity Investing

This text discusses the relationship between sustainability and performance, including risk, and the integration of sustainable criteria in complex portfolio optimization. It also reviews the financial liabilities induced by climate change.

Format: Hardback
Length: 194 pages
Publication date: 09 March 2022
Publisher: Taylor & Francis Ltd

Here is the rewritten text:

Sustainability is a multifaceted concept that encompasses environmental, social, and economic aspects. It involves the responsible management of resources to ensure their availability for future generations while minimizing their negative impact on the environment.

Sustainability is closely linked to performance, including risk management. Companies that prioritize sustainability often exhibit better financial performance and resilience to market shocks. This is because they adopt practices that reduce environmental degradation, improve resource efficiency, and enhance social well-being.

Integrating sustainable criteria into complex portfolio optimization is a crucial aspect of sustainable investing. Portfolio managers can use sustainable metrics and indicators to assess the environmental, social, and governance (ESG) performance of investments. This helps them make informed decisions that align with their sustainability goals and reduce the risk of negative impacts on society and the environment.

However, sustainability also presents financial liabilities. Climate change, for instance, has the potential to cause significant financial losses for companies and investors. Companies that are exposed to climate-related risks, such as physical damage to their assets or regulatory changes, may face increased insurance premiums, legal costs, and reputational damage. Investors, on the other hand, may see their investments impacted by changes in climate-related regulations or by the decline in the value of assets that are vulnerable to climate change.

To address these financial liabilities, companies and investors are increasingly implementing sustainable practices and investing in sustainable assets. This includes reducing greenhouse gas emissions, investing in renewable energy, and implementing climate risk management strategies. Additionally, there are initiatives to develop sustainable financial instruments, such as green bonds and sustainable mutual funds, that help fund sustainable projects and reduce the environmental impact of financial activities.

In conclusion, sustainability is a critical issue that requires the attention of companies, investors, and policymakers. By integrating sustainable criteria into portfolio optimization and implementing sustainable practices, we can achieve a more sustainable and resilient economy that benefits both the environment and society.

Weight: 368g
Dimension: 143 x 222 x 19 (mm)
ISBN-13: 9781032071015