| dc.description.abstract | This paper aims to explore the distinctive characteristics and sustainability practices of Sovereign Wealth Funds (SWFs), with a focus on the two largest SWFs in the world, China Investment Corporation (CIC) and Government Pension Fund Global (GPFG). There are two sections to this study. The first section compares GPFG and CIC to examine the elements that set these top-ranked SWFs apart, despite their prominent positions. Examining crucial elements, including investment strategies, degree of transparency, the origin of the fund, asset mix and other pertinent features gives us the opportunity to understand how these SWFs manage wealth management and approach sustainable investing.
The hypothesis that SWFs with higher degrees of asset consistency show a more substantial alignment with Environmental, Social, and Governance (ESG) aspects, is the focus of the second section of this study. Thus, the hypothesis can be structured as: “Sovereign Wealth Funds that perform better in terms of assets and returns show a stronger adherence to ESG considerations.” This specific hypothesis suggests that SWFs with more assets or performed better in terms of returns are more likely to include sustainable investing strategies in their portfolios. The degree of asset consistency and ESG characteristics are evaluated to test this theory by inspecting a chosen sample of nine SWFs in total from the top ten largest SWFs. The analysis employs lag data to evaluate potential causative links and determine how much asset consistency affects sustainability practices within the analyzed SWFs.
It is vital to acknowledge that the limited data availability restricts the study's scope. Despite significant attempts to gather data from online resources, the focus of this analysis had to be reduced due to the absence of public disclosures and the challenge of accessing full SWF data. However, the research's conclusions and revelations have valuable ramifications.
Keywords: Sovereign Wealth Fund (SWF), Government Pension Fund Global (GPFG), China Investment Corporation (CIC), Environmental Social Governance (ESG) | |
