E-newsletter of Investing for the Soul March 30, 2013
Top ethical investing news for March 2013
Links may only be valid a limited time Commentaries by Ron Robins
Twitter allows me to cover more--and breaking news--to help you do better!
Is the U.S. Insurance Industry Prepared For Climate Change? - [COMMENTARY] "Analysis of first-ever industry-wide survey finds that only 23 of 184 companies have comprehensive climate change strategies, yet some leaders are emerging. 2012 was the warmest year on record in the lower 48 states and the second most extreme weather year in United States history. Insurers are increasingly acknowledging that extreme weather has become the new normal, yet a new report from Ceres finds that many in the industry are only just beginning to think about how to address the effects climate change may have on their business – while a small group of companies is leading the way."
Considering that many US financial industry leaders are 'climate
change deniers,' it isn't surprising that some major insurers aren't
willing to acknowledge or plan for it.
Do Investors Care About Companies' Climate Change Disclosure? - [COMMENTARY] "A wide gap exists between investor commitment and action to reward transparency and ESG performance. Unless companies engage with and help their investors see that ESG issues should be integral to their analysis and decision-making process, investment funds will likely not correlate to sustainable business. Likewise, investors need to listen to the whole story and integrate ESG criteria into company performance valuations."
There is generally a small premium to the stock prices of those
companies with great ESG credentials relative to peers with lesser ESG
credibility. However, the differential should be greater. I believe as
climate change becomes increasingly an issue, that premium for companies
with higher ESG performance will increase.
One Third Of Britons Want To Boycott Companies Who Avoid Paying UK
Taxes. - [COMMENTARY]
"According to new research millions of Britons are using consumer power
to boycott companies seen to be avoiding their fair share of UK tax. A
ComRes survey about public perceptions around tax avoidance,
commissioned by Christian Aid, found a third of Britons say that they
are currently boycotting the products or services of a company because
it does not pay its fair share of tax in the UK. Almost half (45 per
cent) say they are considering a boycott." It might not be much
longer that companies can shift around their profits to low tax
jurisdictions to escape paying the full share of taxes in the countries
where those profits were earned!
Half Of UK Investors Want Greater Shareholders' Voting
Transparency. - [COMMENTARY]
"Forty-seven per cent of Britons who have savings or investments managed
by an intermediary want to see greater transparency when it comes to
shareholder voting. The figures have been released as part of the
inaugural Ownership Day – an event co-ordinated by the UK Sustainable
Investment and Finance Association (UKSIF) to promote active ownership
and stewardship among investors. On top of nearly half of respondents
who want their investment managers to be clearer on how they cast
clients’ votes, one in three (33%) also called for better guidance on
how to access voting details." It's probably a similar situation
throughout most of the developed world.
What Is The Real Financial Impact of Sustainable Investment? - [COMMENTARY] "Cary Krosinsky of the Network for Sustainable Financial Markets produces a white paper that argues the actual amount of assets devoted to sustainable investment strategies is considerably lower than reported by the world's largest sustainable investment forums."
I'm inclined to agree with Cary that the reported numbers concerning
the proportion of global portfolios invested in sustainable
companies--as recently reported by the sustainable investment forums--is
probably too high. The forums claim 21.6% of global portfolio assets
invested in sustainable companies. This is a good article by Mr. Kropp
on the subject.
Green Transition Scoreboard® Finds Over $4.1 T In Private Green
Investments. - [COMMENTARY]
"The year 2013 promises long strides away from the
fossil-fuelled Industrial Era as illuminated by the Ethical Markets
Green Transition Scoreboard® (GTS) which tracks private investments
growing the green economy worldwide since 2007, finding $4.1 trillion
invested or committed as of Q4 2012. The year 2012 was an inflection
point for the green transition worldwide. Technology and innovation such
as in electricity generation and transport began forcing structural
changes and rethinking of business models, urban design and development
toward integrated systemic approaches." This is up $1 trillion from
a year ago! Read the press release. There's some fascinating information
Swiss Voters Approve Binding Say On Pay! - [COMMENTARY] "The vote gives shareholders of companies listed in Switzerland a binding say on the overall pay packages for executives and directors. Pension funds holding shares in a company would be obligated to take part in votes on compensation packages. In addition, companies would no longer be allowed to give bonuses to executives joining or leaving the business, or to executives when their company was taken over. Violations could result in fines equal to up to six years of salary and a prison sentence of up to three years."
This is an historic event! It gets around the cozy relationship of
directors mutually reinforcing inappropriate pay raises for each other.
However, I don't yet see such a move occurring in too many other
Featured New Book
Looking Forward, Looking Back, by Lloyd Kurtz, Tilburg University
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Disclaimer: Neither The Soul Investor nor Ron Robins make investment recommendations. Nothing in this newsletter should be interpreted as a recommendation or solicitation to buy/sell any securities or investments. The Soul Investor is a source of general information and resources for spiritual investing, ethical investing, and socially responsible investing (SRI). Investors should consider their actions thoroughly and consult their professional advisers prior to taking any investment action. The Soul Investor does not necessarily agree with the opinions expressed in articles in its newsletter or offered on the web pages to which it might be linked. Such opinions are the responsibility of the writers themselves. Furthermore, The Soul Investor does not offer or provide any warranties, representations, guarantees, implied or otherwise, as to the accuracy, legality, copyright compliance, timeliness or usefulness of the information, materials or services in this e-newsletter, or other sites, to which it might be linked. Also, Mr. Ron Robins is not an investment advisor, nor is he licensed with any professional investment related body, and thus is not able to, nor does he make, any investment recommendations.
The Soul Investor is a publication of Investing for the Soul, a registered business name in Ontario, Canada. Copyright © 2013 Ron Robins. All rights reserved.