Dealing with income bias in sovereign ESG scores

Logo
Presented by

Julien Moussavi, Senior Research Lead, Sovereign ESG & Lazar Karapandza, Senior Analyst, Sustainable Investment Research,

About this talk

Description: Investors are embracing sustainable investment strategies in passive fixed income like never before. Billions of dollars are flowing into ESG-tilted sovereign debt as asset owners try to mitigate their exposure to climate risks. But there are unintended consequences that are not discussed enough, notably related to biases present in the ESG assessment where scores tend to favour higher income countries. In our paper ‘Dealing with income bias in sovereign ESG scores’ we propose an ex-post way to deal with income bias in Sovereign ESG. Arne Staal, Global Head and CEO of FTSE Russell, asks Julien Moussavi, Ph.D. Senior Research Lead, Sovereign ESG, Beyond Ratings and Lazar Karapandza, Senior Analyst, Sustainable Investment Research, Beyond Ratings to summarise their research, outline its importance to our clients and provide an overview of key findings.
Related topics:

More from this channel

Upcoming talks (28)
On-demand talks (389)
Subscribers (45614)
FTSE Russell is a leading global provider of index and benchmark solutions, spanning diverse asset classes and investment objectives. As a trusted investment partner we help investors make better-informed investment decisions, manage risk, and seize opportunities. Market participants look to us for our expertise in developing and managing global index solutions across asset classes. Asset owners, asset managers, ETF providers and investment banks choose FTSE Russell solutions to benchmark their investment performance and create investment funds, ETFs, structured products, and index-based derivatives. Our clients use our solutions for asset allocation, investment strategy analysis and risk management, and value us for our robust governance process and operational integrity. For over 35 years we have been at the forefront of driving change for the investor, always innovating to shape the next generation of benchmarks and investment solutions that open up new opportunities for the global investment community.