Norsif Report: ESG integration in Norwegian Fixed Income (September 2018)
The goal of this report is to not to offer a one-size-fits-all solution for ESG investing in the Norwegian fixed income market. Rather, our aim is to understand why and how investors approach ESG risks currently, and whether the academic literature can offer any evidence that
investors can draw upon in continually refining our responsible investment strategies.
In our experience, materials produced for a global audience tend to be less relevant for the Norwegian market. For example, both credit ratings and ESG ratings coverage are often unavailable for many Norwegian issuers. We needed a tool adapted to the specific characteristics of the market. To address this deficiency, we conducted in-depth interviews with Norwegian fixed income portfolio managers, both to learn about the market and about how investors currently approach ESG in their investment process. In addition, we commissioned a literature review on ESG in fixed income from Professor Bruno Gerard (BI Norwegian Business School), which focuses on global academic studies of high quality.