Market evolutions in sustainability: best practice climate, nature and social solutions – Isio

In this third and final paper of Isio's series on sustainable investment strategy implementation, the focus is on understanding best practice sustainability propositions across the spheres of climate, nature and social investments, and how these could all fit together.

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... Sustainable investment needs remain significant and to deliver global sustainability goals, we will need to scale up sustainable investments by over ~$10tn a year, by 2030. This is something investors will need to play a significant role in scaling up sustainability financing.

There is increasing diversity of sustainable themes that are growing traction with investors, and span the asset class universe, with a focus on climate change, nature & biodiversity, and social issues, which do not live in isolation. The holistic consideration of various sustainability themes is what Isio would consider best practice, and can be accomplished by both layering different sustainable investment opportunities across asset classes, as well as by integrating broad sustainability objectives within a single mandate.

In this paper, Isio provide examples of best practice mandates, which Isio have been working with clients and investment managers to develop and notes that there remains some challenges to investing in the market’s sustainability propositions. The key point, however, is that managers are developing innovative solutions to overcome these. Whilst the sustainability industry continues to evolve, there is a significant sustainable investment opportunity for investors to engage with, today.

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