The Investment Leaders Group (ILG) has launched two new tools which it says can help investors to tackle short-termism and lack of transparency in the financial sector.
ILG is a network of ten pension funds, insurers and asset owners, including Allianz, Old Mutual, Standard Life and Zurich, organised by the University of Cambridge Institute for Sustainability Leadership.
The reports follow a separate investor guide to carbon risk published last week.
The first new report sets out a toolkit of ten design features for investment mandates with varying strengths of “sustainability” integrated into them.
Investors can use the toolkit to design or assess investment strategies aligned with long-term responsibility and sustainability goals.
The framework of the second new tool uses the UN Sustainable Development Goals as a starting point, and simplifies them into a set of six impact metrics for investors – basic needs, wellbeing, decent work, resource security, healthy ecosystems and climate stability.