Publication: Environmental, Social, and Governance Investing: A Primer for Central Banks’ Reserve Managers
Date
2021-03-01
ISSN
Published
2021-03-01
Author(s)
Bouye, Eric
Klingebiel, Daniela
Ruiz, Marco
Abstract
This primer responds to central banks’
growing demand for knowledge on social, governance, and
environmental considerations (ESG) in the investment
process. This area has gained traction in the last two
decades. More recently, central banks’ interest in ESG has
increased, but much of the information available is aimed at
investors with different investment objectives and broadly
diversified portfolios. The authors fill that information
gap by reviewing the definitions of ESG and the main ESG
investment approaches, including their applicability to
asset classes. The authors then examine how foreign reserve
managers can apply ESG investing in their reserve management
operations. The authors find limited scope for implementing
ESG strategies in reserve management, given that most
central banks still invest primarily in sovereign bonds of
major economies. Yet, the authors also identify
opportunities and critical considerations for central banks
interested in implementing ESG investing in their reserve
management operations.
Citation
“Bouye, Eric; Klingebiel, Daniela; Ruiz, Marco. 2021. Environmental, Social, and Governance Investing : A Primer for Central Banks’ Reserve Managers. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/36285 License: CC BY 3.0 IGO.”