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This paper from MSCI seeks to lay out some fundamental principles and best practices for ESG reporting of short positions at a portfolio level, based on the results from MSCI’s consultation with over 20 market participants globally. It also explores related issues that influenced market participants’ views on this topic, including cost of capital, shareholder ownership, engagement and regulation.
The most important principle for long-short portfolio ESG reporting is transparency. Transparency allows both regulators and clients to more accurately assess the ESG risks and opportunities to which the fund is exposed on both the long and the short sides of the portfolio. The main difference in investor views on reporting short positions was whether the investor was assessing a company’s real-world impact or if they were focused solely on its ESG risk/return metrics.
In general, asset owners, asset managers and hedge funds agree that reporting for ESG transparency is different from reporting for ESG risk exposure, with both being important in meeting different ESG investment reporting objectives. It is therefore recommended that long-short portfolios report ESG and climate metrics separately for both the long and short legs, in addition to any preferred aggregation schemes, as this allows the greatest transparency and flexibility for aggregate portfolio reporting under both a double and financial materiality assessment.
This report was originally published in https://www.msci.com/www/research-paper/esg-reporting-in-long-short/03136460396
With the pandemic now well into its third year, most markets in Asia Pacific have adopted a policy of living with COVID-19 as high vaccination rates, effective medical care and the emergence of weaker variants reduce the severity of the virus and remove the need for lockdowns and other related measures. The findings from CBRE’s 2022 Asia Pacific Occupier Survey, which was conducted from March-April of this year, reflect this new paradigm.The report identifies and explores the five key real estate priorities for Asia Pacific occupiers in the post-pandemic era:
The report also highlights the challenges that companies will need to address during this period of transformation.
Download the Report Read MoreExecutive Summary:
Inflation across the world has reached multi-year highs, driven by a confluence of demand and cost factors. Given Singapore’s small open economy as well as dependence on energy and food imports, the city-state's overall inflation has picked up, rising to 5.4% yoy in March 2022, a decade high.
This report explores the implications of high inflation for real estate, and presents key strategies for owners, investors and occupiers to forge ahead in the inflationary environment.
Download the Report Read MoreThe Fed moved on its widely anticipated 0.25 percentage point rate hike during the month, the first increase since December 2018, signaling the start of an incremental salvo to address spiraling inflation. However, with the move largely priced in, stocks in the region remained focused on the fallout from the conflict in Ukraine, which has exacerbated inflationary pressures through rising energy and commodity prices, as well as conditions nearer home. Signs of a resurgence in the pandemic across a number of major Chinese cities and the resultant lockdowns also depressed markets. While sentiment was lifted after China tried to shore up private sector confidence after a protracted regulatory crackdown, indicating support for its real estate and internet industries, the region’s equities remained on a down trend as it slumped to its third consecutive month of losses. MSCI’s total return benchmark for the region’s equities fell close to 6% in the first quarter to underperform the region’s property sector.
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