Ethical Investing News/Commentaries
Commentaries by Ron
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3 trends propelling the spread of
sustainable business. "Audrey Choi, CEO
of Morgan Stanley’s Institute for Sustainable
Investing, cited the result of a study indicating
that 93 percent of equities face climate risk."
The above quote indicates how massive the task is
for investors to understand the impact of climate
change on investments. This article is a good read
to gain more insight into what is driving companies
3 trends propelling the spread of sustainable
business, by Gwenyth Jones, October 28, 2016,
New Research Reveals Opportunity, Methods
for Engaging Investors on Long-Term Value Creation.
"New research by Corporate Citizenship, in
association with S&P Dow Jones Indices – entitled
Getting on the Right Track: How to Demonstrate the
Value of Sustainable Business to Investors - reveals
that long-term thinking is still not the norm for
For companies to think long-term, compensation
throughout the organization must be long-term
based. However, this is difficult as work becomes
increasingly transitory and contract hiring a big
factor in many companies. Even the median tenure of
today's CEOs is only 4.9 years among S&P 500
Fortune magazine. This suggests these CEOs don't
necessarily have a long-term horizon for sustainable
investments and their potential returns.
New Research Reveals Opportunity, Methods for
Engaging Investors on Long-Term Value Creation,
October 26, 2016, Sustainable Brands, USA.
PwC’s 2016 ESG Pulse -- Investors,
corporates, and ESG: bridging the gap.
"For the past decade, investors have expressed
interest in ESG issues, including their importance
in investment decision-making. Corporates have paid
attention, and many are responding to investor
demands. But there still isn’t alignment between
these two groups on why, what, where, and how often
to report on ESG issues."
Hopefully, somehow, they'll be some integration of
the new GRI standards and those of SASB. Certainly,
all groups working on such standards need to come
together before we can have ESG reporting standards
satisfying most companies and investors.
PwC’s 2016 ESG Pulse -- Investors, corporates, and
ESG: bridging the gap, press release, October
27, 2016, PwC, USA.
2016 Global Cleantech 100 Ones to Watch.
"The GCT100 Ones to Watch list seeks to
highlight a group of upcoming companies that are
catching the eye of leading investors and corporates
in the market. They are companies that have yet to
become a Global Cleantech 100 company, and that did
not have quite enough market support to make the 8th
edition of the Global Cleantech 100 list itself
(which will be published on January 23, 2017).
However, the companies were part of the top
250 nominated and carry pockets of strong support
among the GCT100’s expert panel. As such, these
companies represent this year’s Ones to Watch."
This list will interest many ethical investors.
2016 Global Cleantech 100 Ones to Watch, press
release, October 26, 2016, Cleantech Group, USA/UK.
GRI Standards Push Momentum for Global
Sustainable Development. "On Wednesday,
the GRI announced the launch of the world’s first
Global Reporting Standards for sustainability
reporting. These new standards give businesses large
and small a common language for reporting
A long held dream of mine and for many in the
responsible-ethical investing community has been for
sustainability (and ESG/CSR) reporting standards!
Now it's coming true.
GRI Standards Push Momentum for Global Sustainable
Development, by Thomas Schueneman, October 21,
2016, TriplePundit, USA.
The CFA Exam Is Going Green.
"CFAs are 'telling us loud and clear that
investors are demanding ESG, and there's increasing
academic evidence that sustainable companies are
better-managed companies and have higher
risk-adjusted returns,' Steve Horan, managing
director of credentialing for the Charlottesville,
Virginia-based institute, said in an interview."
We need no more proof that ESG has become mainstream
and recognized for its materiality for corporate
profitability than that quote above.
The CFA Exam Is Going Green, by Emily Chasan,
October 20, 2016, Bloomberg, USA.
Green Power Leadership Awards.
"[The US Environmental Protection Agency] EPA
presented the awards in conjunction with the Center
for Resource Solutions (CRS) Exiton Monday, October
17 during the Renewable Energy Markets Conference
(October 16-18, 2016 in San Francisco, California).
The awards serve to recognize the leading actions of
organizations, programs, and individuals that
significantly advance the development of green power
Companies receiving the award Excellence in Green
Power Use, included: Biogen, Inc., BNY Mellon,
Forest County Potawatomi Community, Goldman Sachs,
Government of the District of Columbia (Washington,
DC), Intel Corporation, and SC Johnson.
Excellence in Green Power Use, press release,
October 17, 2016, EPA, USA.
Which Stock Market Will Deliver
Sustainable Profits? "ESG Scores
represent the degree to which companies in a
portfolio have transparent policies and management
systems in place to address their ESG-related
challenges. Denmark tops the global ranking with a
Portfolio ESG score of 69. Portugal and the
Netherlands are next. The top half is again
dominated by European, and in particular Eurozone,
A new fascinating ESG country-company-ESG-portfolio
analysis! As usual, European countries top this
list. Many ethical investors will want to read this
article as it provides a unique perspective on many
Which Stock Market Will Deliver
Sustainable Profits? By Francesco
Paganelli, October 17, 2016, Morningstar, UK.
Impact Investment is Growing Rapidly in
Canada: New Study. "The 2016 Canadian
Impact Investment Trends Report reveals tremendous
growth in Canada’s impact investment industry. The
survey, which represents data as at December 31,
2015, was conducted between April and August 2016.
Eighty-seven organizations responded to this year’s
survey. The RIA uses the Global Impact Investing
Network’s definition of impact investment: “Impact
investments are investments made into companies,
organizations, and funds with the intention to
generate a measurable, beneficial social and
environmental impact along with a financial return.”
This is great news. Impact investing in Canada has
grown from $4.13 to $9.22 billion between 2013 and
2015. It still has the potential to grow much, much
Investment is Growing Rapidly in Canada: New Study,
press release, October 13, 2016, Responsible
Investment Association, Canada.
Moody's: Sustainable investing an opportunity
for asset managers to generate value and sustain
active management fees. "Global assets under
management (AUM) linked to firms that have become
signatories to the PRI rose 195% to $62 trillion in
April 2016 from $21 trillion in 2010. Investor
expectations and regulations are driving demand for
sustainable investing, says Moody's Investors
"Integrating ESG criteria into investment decisions
should limit risks within portfolios and contribute
to lower volatility and better performance in the
long run. The effectiveness of these strategies
however will have to manifest through the cycle, as
well as across teams and strategies," says Marina
Cremonese, a Vice President at Moody's. Moody's
subscribers can access this report via the link
provided at the end of this press release."
Further elaboration on Moody's new, positive, ESG
Moody's: Sustainable investing an opportunity for
asset managers to generate value and sustain active
management fees, press release, October 6, 2016,
Moody's: Investors today are more sensitive
to climate change. "Interest in climate
change and sustainable investment among
institutional investors has expanded rapidly in
recent years and is only likely to increase in
importance following the ratification of the Paris
Agreement. hat is the conclusion of a new report
from influential ratings agency Moody's."
Moody's is stating the obvious. However, it's
pleasing to see them acknowledge and report it.
Moody's: 'Investors today are more sensitive to
climate change,' by James Murray, October 6,
2016, BusinessGreen, UK.
New Report Finds Slow Growth in Canadian Green
Bonds Market Despite Provincial and Federal
Government Commitments. "Key highlights
include: Canada's climate-aligned bond market has
grown to C$32.9bn - making Canada's markets the 5th
largest in the world; both the full climate-aligned
universe and the C$2.9bn labelled green segment of
the Canadian market have grown over the past year,
though less quickly than had been expected; 2016
remains an important opportunity for the federal and
provincial governments to take action and show the
leadership necessary to accelerate market growth."
[COMMENTARY] That Canada's green bond market is the
fifth largest in the world is pretty good
considering the size of its bond market. However, as
the report indicates, much more can be accomplished.
New Report Finds Slow Growth in Canadian Green Bonds
Market Despite Provincial and Federal Government
Commitments, press release, October 3, 2016,
Smart Prosperity Institute and Climate Bonds
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