The Investment Leaders Group (ILG) is a global network of pension funds, insurers and asset managers committed to advancing the practice of responsible investment. It is a voluntary initiative, driven by its members, facilitated by the Cambridge Institute for Sustainability Leadership (CISL), and supported by academics in the University of Cambridge.
The ILG´s vision is an investment chain in which economic, social and environmental sustainability are delivered as an outcome of the investment process as investors go about generating robust, long-term returns.
As fiduciaries, investors gain by helping beneficiaries make informed choices about the management of their savings and investments. While the financial performance of funds is readily accessible, their social and environmental impact remains largely opaque, not only to the public but to the industry too.
This work aims to help the investment industry empower savers to understand the impact of their investments on the critical challenges of our generation and to invest in line with their world views.
Short-termism in financial markets has been widely identified as a cause of under-investment, economic inefficiency and poor decision-making by corporations, which undermines long-term value creation.
This work explores how long-term, sustainable investment practices can be delivered through investment mandates.
The COP 21 climate agreement indicates a growing global consensus for action on climate change. In response, the ILG’s work on carbon regulation risk assesses the impact of future carbon- and energy-related regulation on the most sensitive industries and geographies at a company level.
The ILG’s work on climate change sentiment risk takes a different approach and looks at the short-term risks stemming from how investors react to climate-related information, from policy decisions and technology uptake, to market confidence and weather events.