Since 2002
Postings and Commentaries by Ron Robins
The Backlash Didn’t Kill Green Investing. In Fact, It’s Booming
“Far from being dead, responsible investing is not even dented, despite the noise. Morgan Stanley data shows that, in 2023, sustainable funds continued to outperform their peers. The market grew 15% last year, reaching a high of $3.4 trillion. Over 50% of investors plan to boost sustainable investments in 2024, and when asked if they are interested in…
Stand by ESG? The State of 2024 U.S. Sustainability Reports
“These two mega trends – increasing requirements from regulators for more ESG disclosure and increasing pressure to abandon ESG altogether – have forced many companies to rethink their existing ESG strategies.” [COMMENTARY] This report cuts through all the noise regarding the true state of corporate ESG and sustainability reporting today. Stand by ESG? The State…
What Are ESG Bonds?
“ESG bonds are fixed-income securities issued to raise capital for projects that align with the principles of environmental, social, and governance (ESG) criteria. These bonds allow issuers to finance initiatives that have positive impacts in areas such as renewable energy, social equality, and corporate governance. For investors, ESG bonds offer a way to contribute to…
The 10th edition of the global Prize Ethics & Trust in Finance is on
“The mission of the Prize is to promote greater awareness among young people (professionals as well as academics) throughout the world of the importance of strengthening ethics and integrity in the finance sector.” [COMMENTARY] I’ve been an enthusiastic supporter of this prize since its first year. I highly encourage all those young people studying finance…
Green bonds are bunkum (See my commentary on this article)
“To what extent is the greenness merely a gimmick to adorn standard corporate borrowing? How much of it is legit? Hardly any of it, according to a new NBER paper by Pauline Lam and Jeffrey Wurgler of NYU’s Stern School of Business.” [COMMENTARY] The data is concerning. It suggests that many bond issuers can ‘greenwash’…
EU investors double down on transition-focused funds amid ESG scrutiny
“Investment flows into funds that focus on transitioning companies from ‘brown’ to ‘green’ technologies have nearly doubled those into purely environmental funds in the EU over the past two years, the European Securities and Markets Authority (ESMA) has reported.” [COMMENTARY] Investors now understand that some research shows more upside stock potential for companies transitioning from ‘poor’ …
85% of banks rely on ESG ratings for financial strategy, reveals CDP report
“A recent report from CDP has illuminated the growing centrality of ESG ratings in the strategic frameworks of financial institutions (FIs).” [COMMENTARY] Despite the anti-ESG sentiment among many in politics and business today, financial institutions still see the value in ESG ratings. After all, how can it not be of value to investors to know…
Defense stocks in an ESG portfolio? A profound — and controversial — shift seems to be underway
“Russia’s ongoing war in Ukraine has resulted in a profound shift in the way defense stocks are viewed by mission-driven fund managers, according to two European defense giants.” [COMMENTARY] Ethical and sustainable investing is all about personal values, which differ between individuals and sometimes change over time That’s how it should be. Defense stocks in an…
Goldman Analysis Sheds Light on Rise of Commodities in ESG
“The days of equating ESG with the blacklisting of commodities are over, it seems.” [COMMENTARY] ESG fund managers and investors are realizing there is no net zero without substantial new investment in base metals and raw material mining and extraction. It’s early days for investors to get in on the investment opportunities in this area.…
Jennifer N. Coombs: 10 things ESG scores can (and can’t) do for investors
“ESG data can help investors identify potentially problematic companies, long before traditional valuation methods would pick up on the issue.” [COMMENTARY] This article provides a good overview of this subject for investors. Jennifer N. Coombs: 10 things ESG scores can (and can’t) do for investors, by Jennifer Coombs, August 27, 2024, Equities,com, USA.
ESG: Are Exclusions on Their Way Out?
“Not so fast. Omitting stocks is still popular with a wide range of investors, including those in Europe and fossil-fuel-free fans” [COMMENTARY] Anyone applying personal values to investing will exclude certain industries and companies. This will always be the case, even though some managers like Parnassus have opted to remove exclusions. It’ll be interesting over…
How Financial Markets Can Drive Climate Action
“By engaging with high-emitting industries, rather than simply divesting from them, investors could help achieve meaningful climate progress while still delivering sufficient financial returns.” [COMMENTARY] This article ties in with my thoughts in my previous post concerning the new approach by Parnassus Investments! How Financial Markets Can Drive Climate Action, by Lynn Forester de Rothschild,…
ESG screening is a complex business. Here’s how long-time ESG manager Parnassus is adapting.
“Parnassus Investments, one of America’s oldest and most respected ESG boutiques, is adding once off-limits market segments such as oil and gas to its investment opportunity set, even as executives there warn that the hurdle for including such companies in its portfolios remains high.” [COMMENTARY] I believe the approach by Parnassus on investment selection criteria is…
The 2024 Proxy Season: Which ESG Proposals Made the Podium?
“Support for environmental and social resolutions was lower again in 2024, while support for governance proposals rebounded.” [COMMENTARY] Governance proposals often encompass environmental and social concerns. As authoritative commentators have noted, the ‘E’ and ‘S’ aspects of ESG are inherently about corporate operative and financial performance. They necessitate being addressed no matter what language or…
Moving Beyond ESG
“The barrage of criticism has caused ESG to lose its luster among many executives. Yet the need for a transparent way to connect a company’s financial performance with its ESG performance remains.” [COMMENTARY] This is a well-argued article from someone with outstanding academic and ESG credentials. Moving Beyond ESG, by Robert G. Eccles, September-October 2024,…
Microsoft Unveils New Multi-Framework ESG Reporting Solution
“Microsoft announced Project ESG Reporting, a new tool aimed at enabling companies to create, review and approve ESG reports across multiple standards and frameworks.” [COMMENTARY] This new Microsoft product could become a standard tool, particularly useful for securities analysis. Microsoft Unveils New Multi-Framework ESG Reporting Solution, by Mark Segal, August 12, 2024, ESG Today, USA.
Despite Anti-ESG Attacks, New Study Shows Investors See Climate as Critical to Business Performance
“Critically, three out of four investors (77%)—including 61% of Republicans—explicitly believe that ‘environmentally responsible companies are more likely to succeed financially.’” [COMMENTARY] A study appearing in an article in the Harvard Business Review shows that the Republican push against ESG inclusion in company or portfolio analysis is not aligned with the majority of Republican investors…
Commentary: Why the backlash? Sustainable investing is simply better investing
“In a few years’ time ESG will be a redundant acronym. Assessing risk to a business, and therefore an investment, will automatically consider risks from climate change, environmental liabilities, social protection and the ongoing governance of how companies are managed.” [COMMENTARY] I concur with the argument here! The characteristics of what is inherent in the…
Opinion: Why investors want to see an ‘I’ in ESG
“ESG is due for a rebrand. Instead of the tired controversy over its relevance, the debate has now moved on to how to measure the impact of investment decisions on people’s real lives. Increasingly what investors – professional and private – want to see is ‘I’, real impact, independently verified.” [COMMENTARY] This article is a…
You don’t need to give up gains to pursue an ESG strategy in the stock market
“Brian Burrell of Thornburg explains how combined ESG and financial analysis can identify companies whose improved profitability is directly tied to their efforts to make the world a better place” [COMMENTARY] Strictly speaking, companies adhering to rigorous ESG principles should perform optimally and thus outperform in operational, financial, and stock market metrics. You don’t need…
