A growing group of investors is recognizing the need for a broader

understanding of emerging risks in the bond markets. Furthermore, there is

growing concern over the mounting threat of systemic risks outside the
financial system, notably environmental risk, which can impact multiple
financial markets. (pag 3)
In recent years, progress has been made in comparing the financial
performance of conventional equity portfolios with portfolios in which
environmental, social and governance (ESG) factors have been part of the
screening and selection process. However, methods and metrics for linking
ESG materiality to other asset classes, most notably fixed income assets, lag
behind.
Some investors use quantitative ESG data at an early stage or
contextualization phase, disconnecting the analysis from the core financial
analysis, and instead using it to provide context to the rating. For example,
Bank Sarasin uses resource-based metrics such as the Ecological Footprint
as a quantitative metric for assessing country level sustainability
performance. (pag 12)
Texto: A New Angle on Sovereign Credit Risk. E-RISC: Environmental Risk
Integration in Sovereign Credit Analysis