Universal ownership why environmental externalities matter

We generated a verification code for you. Clicking 'Request' means you agree to the Terms and have read and understand the Privacy Policy. All Events Webinars Webinar Replays. Highlights The UN-backed Principles for Responsible Investment and UNEP Finance Initiative commissioned Trucost to calculate the cost of global environmental damage and examine why this is important to the economy, capital markets, companies and institutional investors.

Large institutional investors are, in effect, "Universal Owners", as they often have highly-diversified and long-term portfolios that are representative of global capital markets.

Their portfolios are inevitably exposed to growing and widespread costs from environmental damage caused by companies. They can positively influence the way business is conducted in order to reduce externalities and minimize their overall exposure to these costs.

Long-term economic wellbeing and the interests of beneficiaries are at stake. Institutional investors can, and should, act collectively to reduce financial risk from environmental impacts. Skip to main content. Tell us how you used this resource Suggest a green growth resource.

Browse by:. Keyword Search. Universal Ownership: Why environmental externalities matter to institutional investors. March Universal Owners and other investors can take a number of measures to help mitigate externalities: Evaluate impacts and dependence of investee companies on natural resources. Incorporate information on environmental costs and risks into engagement and voting initiatives and seek to reduce environmental impacts of portfolio companies.

Join other investors and engage collaboratively with companies through platforms such as the PRI Engagement Clearinghouse to address key issues.

Engage individually or collaboratively with public policymakers and regulators to encourage policies that promote the internalisation of costs and establish clear regulatory frameworks.

Ask for regular monitoring and reporting from investment managers on how they are addressing fund exposure to risks from environmental costs and engaging with portfolio companies and regulators. Encourage rating agencies, sell-side analysts and fund managers to incorporate environmental costs into their analysis. Support further research to build capacity and improve understanding of the relationship between corporate externalities, ecosystem goods and services, company financial risk and portfolio returns.

Download the full report Universal ownership: Why environmental externalities matter to institutional investors October Topics Climate change Environmental issues PRI archive Universal ownership: Why environmental externalities matter to institutional investors.

Related content. Webinar US municipal bonds: addressing the data differences for ESG integration TZ Does the ESG data used by investors to assess US municipal and corporate bonds differ, and is there enough self-reported issuer data available?

Load more. More Environmental issues. This study provides an important rationale for action by large institutional investors that have a financial interest in the wellbeing of the economy as a whole. Many Universal Owners are signatories to the Principles for Responsible Investment PRI , and we hope they continue to exercise leadership and responsible ownership by acting on the ideas and recommendations in this report. Contact us: info smartprosperity.