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A total portfolio approach for promoting peace (SDG 16)

We are honoured to provide strategic support to the PeaceNexus Foundation through our founder’s role as trustee of the foundation.  PeaceNexus provides key actors such as multilateral organisations, governments, non-profit organisations and business actors with expertise and advice on how they can make best use of their peacebuilding role and capacity to help stabilise and reconcile conflict-affected societies. Geographically it focuses on four regions – the Balkans, Central Asia, South East Asia and West Africa/the Sahel – where it supports both international and local peacebuilding organisations with strategy and organisational development advice. It also helps companies active in fragile states integrate a conflict-sensitive approach in their operations and in dealing with local stakeholders.

PeaceNexus is one of the few privately funded foundations fully dedicated to implementing the Sustainable Development Goal #16 aimed at “promoting peaceful and inclusive societies for sustainable development, providing access to justice for all and building effective, accountable and inclusive institutions at all levels”.  It recently explored ways to use its capital in support of the mission and seeded a new investment fund aimed at positive peace outcomes through engagement with the companies it invests in.  With this total portfolio approach, PeaceNexus is able to increase its impact in the field and to use synergies between the grant-making and investment side of the foundation.

Assessing Swiss pensions funds' responsible investment practices

For the second time, WWF Switzerland has released a detailed rating survey of Swiss pension funds’ policies and practices in the field of responsible investing. The analysis focuses on the 20 largest pension funds in Switzerland. Ivo Knoepfel of onValues was part of the panel of experts that provided guidance for developing the rating methodology.

The Swiss second-pillar pension system, representing around CHF 910 billion under management, or 133% of Swiss gross domestic product, carries enormous weight in further shaping the future of our economy.  The rating survey is meant to encourage and promote dialogue with respect to pension funds’ fiduciary responsibility for taking into account environmental, social and governance issues in their investment decisions.

The rating was carried out by Inrate and its Managing Partner Beat Zaugg (also member of the Advisory Board of onValues) said: “Every investment also has indirect environmental and social effects. These do not always have financial consequences in the short term, for example in the area of air traffic, where the external costs of global warming are borne not by the producer but by the general public. However, if these costs are internalized in future, pension funds that invest in these sectors will be exposed to investment and reputational risks”.

What's behind an acronym

Few people know that today’s widely used ESG (Environmental, Social, Governance) acronym was created by onValues back in June 2004.  On behalf of a partnership between the Global Compact and leading financial institutions, we then produced the “Who Cares Wins” report which summarised recommendations by the financial industry to better integrate ESG issues in analysis, asset management and securities brokerage.  In the report, we chose to be specific about the issues addressed and not use broader terms such as sustainable or responsible investing.  For purely practical reasons, we introduced the acronym ESG instead of having to spell out “environmental, social and governance” multiple times in the report.

The Institutional Money magazine has recently interviewed our founder Ivo Knoepfel and published an article (only available in German) that looks back at the birth of ESG and how its use has evolved over time.

Is ESG investing at threat from rising populism and protectionism?

In two recent Forbes articles, Georg Kell, former head of the Global Compact, discusses the rise and future challenges of ESG investing. In the first article, he looks at the forces that have shaped ESG investing over the past 15 years. Since the acronym was first introduced in 2005 (in the landmark “Who Cares Wins” report authored by onValues), ESG investing has rapidly grown and today is estimated at over $20 trillion in AUM or around a quarter of all professionally managed assets globally.

In a further article, Kell asks if the case for corporate responsibility and ESG investing still holds in the face of rising populism and protectionism and a changing environment, where the assumptions of a fair level playing field based on rules and trust in public institutions may no longer hold. He argues that the forces that propel corporate sustainability forward are largely independent of policymaking and driven more by technology, transparency and resource scarcity which lead to financial drivers. “But only up to a point. Should the destruction of the international rule-based system become the new dominant way of policymaking, then all bets are off”, he adds. Kell concludes with an appeal to responsible business leaders to speak up and to use their influence to defend and strengthen the rule-based market system and the values that hold markets and humanity together.

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News

  • A total portfolio approach for promoting peace (SDG 16)

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  • Assessing Swiss pensions funds' responsible investment practices

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  • What's behind an acronym

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  • Is ESG investing at threat from rising populism and protectionism?

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  • Engaging with others in support of field building and strategic initiatives

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  • onValues assists clients in aligning their wealth to a low-carbon future

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  • Can gold be considered a ‚safe haven‘ investment?

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  • New Toniic reports help investors navigate impact investment markets

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  • Currencies as part of a long-term investment strategy

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  • Investing in sustainable agriculture and food

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