Sustainable Investing A Path to a New Horizon

This book tells the story of how the convergence between corporate sustainability and sustainable investing is now becoming a major force driving systemic market changes. The idea and practice of corporate sustainability is no longer a niche movement. Investors are increasingly paying attention to sustainability factors in their analysis and decision-making, thus reinforcing market transformation.

In this book, high-level practitioners and academic thought leaders, including contributions from John Ruggie, Fiona Reynolds, Johan Rockström, and Paul Polman, explain the forces behind these developments. The contributors highlight (a) that systemic market change is influenced by various contextual factors that impact how sustainable investing is perceived and practiced; (b) that the integration of ESG factors in investment decisions is impacting markets on a large scale and hence changes practices of major market players (e.g. pension funds); and (c) that technology and the increasing datafication of sustainability act as further accelerators of such change.

The book goes beyond standard economic theory approaches to sustainable investing and emphasizes that capitalism founded on more real-world (complex) economics and cooperation can strengthen ESG integration. Aimed at both investment professionals and academics, this book gives the reader access to more practitioner-relevant information and it also discusses implementation issues. The reader will gain insights into how "mainstream" financial actors relate to sustainable investing.

Foreword by Mark Carney 1. Sustainable Investing: A Path to a New Horizon PART 1: THE CHANGING CONTEXT OF SUSTAINABLE INVESTING 2. Business and Sustainability, From the Firm to the Biosphere 3. Renewing Markets from Within: How Businesses and the Investment Community Can Drive Transformational Change 4. Good Governance: Navigating on Purpose and Complexity Based Principles 5. The End of the Beginning: Next Generation Responsible Investment 6. Planetary Boundaries: A Compass for Investing for the Common Good PART 2: RETHINKING SUSTAINBLE FINANCE AND LEADERSHIP 7. Navigating the ESG World 8. A New Age For Responsible Banking 9. Corporate Purpose in Play: The Role of ESG Investing 10. What Corporates Can Do to Move the Financial Markets to a Longer-Term and More Responsible Mindset 11. Embedding Values and Principles PART 3: SUSTAINABLE INVESTING, TECHNOLOGY, AND DATA 12. ESG and AI: The Beauty and the Best of Sustainable Investing 13. FutureMakers and climate change modelling: method to the madness 14. Data Defense in Sustainable Investing PART 4: ACCELERATING TRANSFORMATIONAL CHANGE 15. Investing Sustainably: Transforming Asset Owners from Sayers to Doers 16. Building a balanced and scalable strategic asset allocation to meet financial and ESG impact goals 17. The Imperative of Sustainable Investing for Asset Owners 18. Sustainable investing: Shaping the future of theory and practice

Herman Bril joined the United Nations Joint Staff Pension Fund (UNJSPF) in New York as Director of the Office of Investment Management in June of 2016. He has over 25 years of experience in international financial institutions in multiple countries.

Georg Kell is Chairman of Arabesque, an ESG Quant fund manager that uses self-learning quantitative models and big data to assess the performance and sustainability of globally listed companies. Georg is the founding Director of the United Nations Global Compact.

Andreas Rasche is Professor of Business in Society at the Centre for Sustainability at Copenhagen Business School (CBS) and also acts as the Associate Dean for the CBS MBA program. He is Visiting Professor at the Stockholm School of Economics.