From left to right: Dr Alex Money, Abdallah Nauphal, Professor Caroline Flammer, Professor Rob Bauer
As COP28 draws to a close, the scaling up of climate finance is front of mind. Academic research that provides evidence to support investment decision-making is vital to greening the finance system.
Update on the Insight Investment – University of Oxford Prize for Greening Finance that was first announced in March:
- The Prize, which opens for nominations in February 2024, has evolved to reinforce the need for rigorous research.
- A further research prize category has been added, ‘Best Green Finance Fixed Income paper’, to recognise academics producing world-leading research examining the role environmental sustainability plays in fixed income investing.
Dr Ben Caldecott, founding Director of the Oxford Sustainable Finance Group at the University of Oxford and Chair of the Prize Panel, said: “Academic research is essential for the proper functioning of financial markets. Researchers play an important role not only in innovation, but also in providing accountability and transparency within financial markets. Asset managers and asset owners can aid this process by collaborating with researchers and supporting independent research. A commitment to academic freedom and free inquiry is essential, as is ensuring that research is publicly available, open access and shared in ways that allow for reproducible analysis.”
Rob Sawbridge, Head of Responsible Investment at Insight Investment, said:
“The scaling up of climate finance is a focus at COP 28. However, we see a significant disconnect between the pace of change in the financial system and the ambition necessary to achieve climate goals. Only through investment managers and academics working collaboratively together will we accelerate the mobilisation of capital required to deliver investment solutions that help make a genuine impact in the real world.”
David McNeil, Head of RI Research and Innovation at Insight Investment, said:
“COP 28 marks the conclusion of a global stocktake assessing collective progress towards the goals of the Paris Agreement. Investors are looking for signs of a disorderly transition because of the impact associated with a rapid repricing of physical or transitional climate risks. This underpins the urgent need for rigorous academic research exploring the practical implications for investment strategies.”
Further information
- Prize money of up to £50,000 is available annually across the Prize categories, split at the discretion of the University. The Prize is only open to individuals and not-for-profit organisations.
- The Prize recognises research and service that helps society better understand how environmental change influences finance and investment, and how economic and financial systems can contribute to achieving global environmental sustainability.
- In 2024 a new category is being introduced (“Best Green Finance Fixed Income Paper”). The three prize categories are now:
- Outstanding Research – The first category recognises outstanding research that helps society better understand how environmental change influences finance and investment, and how economic and financial systems can contribute to achieving global environmental sustainability.
- Outstanding Service – The second category recognises individuals or not-for-profit organisations who have provided outstanding support for the furtherance of green finance.
- Best Green Finance Fixed Income Paper – The third category recognises a specific piece of research that examines the role environmental sustainability plays in fixed income investing.
- As part of the Green Finance Fixed Income Paper category, the Prize Panel are encouraging submissions for research in areas including, but not limited to, the following: ESG factors that are financially material for fixed income investors; instrument versus portfolio-level financial performance; the role of labelled bond issuance; bondholder engagement; asset class distinctions (e.g. corporate versus sovereign investments); bond duration and investment time horizons and their relevance to ESG; and approaches to management of data/disclosure gaps.
- The Prize Panel will review nominations and award the prize. The panel will be chaired by Dr Ben Caldecott, Director of the Oxford Sustainable Finance Group and Director of the UK Centre for Greening Finance & Investment.
- An outline of the responsible investment networks and judges for the 2023 Prize are here and for further background please see this release announcing the winners for 2023.
