Since 2002
Postings and Commentaries by Ron Robins
Beyond the SEC: Why ESG Reporting is Here to Stay
“The CSRD was finalized by the EU in December 2022 and is widely considered the most comprehensive ESG regulation ever, bringing together financial data, ESG information, and assurance for the first time. And they aren’t the only country doing so, the U.K., New Zealand, Japan, China, Brazil, South Korea, Hong Kong, and the European Union…
How Trump’s Potential Re-election Could Shake Up Green Bonds
“The future of green bonds remains optimistic, driven by the global push towards sustainability and increasing focus on ESG criteria. Investors must navigate political risks but can find opportunities in the green bond market’s underlying stability.” [COMMENTARY] I largely agree with this assessment of a post-Trump effect on green bonds. How Trump’s Potential Re-election Could…
‘When it comes to sustainable investing, it pays to be active’
“Data from Morgan Stanley found sustainable funds outperformed their traditional peers across all major asset classes and regions in 2023, with sustainable equity funds in particular providing a median return of 16.7 per cent – more than two percentage points higher than traditional equity funds” [COMMENTARY] I first thought this headline compared passive and active…
How oil barons and right-wing billionaires are manipulating the free market to extend fossil fuels
“The House Judiciary Committee has delivered a clear message to the free market: shut up about climate change or pay the price. The Committee’s Chairman sent threatening letters and filed subpoenas to intimidate 14 mainstream investor organizations with a combined $105 trillion in assets under management, including As You Sow, the nonprofit that I lead.” [COMMENTARY] This is…
Comment: Why climate-related shareholder resolutions are vital for markets
“Key to the functioning of the U.S. financial system, the proxy system is a cornerstone of how investors help guide and gain insight into the companies they own.” [COMMENTARY] The two-way flow of information between boards and shareholders that is enabled concerning climate-related issues would be greatly hampered were they not allowed. That would be…
ESG Is Simply Not Enough To Drive Needed Change
“To truly address the existential threats facing our planet and society, we need a shift that goes beyond the limitations of the ESG paradigm. We need a values-based revolution that redefines the very purpose of business and the role of leaders within it.” [COMMENTARY] The ideas expressed in this article are probably nearer the mark…
Why the S&P 500 ESG Index Continues to Outperform the S&P 500
“Looking through an ESG lens may help tease out risks that might not necessarily be apparent in conventional financial analysis. By excluding the lower scoring ESG companies relative to their peers, some risk is managed out of the index.” [COMMENTARY] I believe the anti-ESG movement is simply politics — largely fueled by fossil fuel interests.…
These 50 Canadian corporations are betting big on green
“Best 50 companies are pouring seven times more into sustainable investments than the average Canadian corporation.” [COMMENTARY] Ethical investors everywhere should review this list as even non-Canadian investors might find companies they consider worthwhile investments. These 50 Canadian corporations are betting big on green, editorial by Rick Spence, Summer 2024, Corporate Knights, Canada.
ESG Funds Are Not More Expensive, Morningstar Sustainalytics Analysis Confirms
“This latest research busts the myth that ESG investments are more expensive for investors, as commonly assumed due to specialised ESG data, research, and expertise.” [COMMENTARY] The research applies to European investments. We don’t know if it’s true for other jurisdictions. ESG Funds Are Not More Expensive, Morningstar Sustainalytics Analysis Confirms, by Meg Bratley, June…
The Story of the First ESG Index
“How the Domini 400 withstood the test of time.” [COMMENTARY] After 34 years of history it still regularly outpaces many mainstream indices! This is a great story that ethical and sustainable investors should know about. The Story of the First ESG Index, by Thomas Kuh, June 21, 2024, Morningstar, USA.
Why every investor should embrace Responsible AI
“The Responsible AI Playbook for Investors, a collaboration between the World Economic Forum and CPP Investments Insights Institute, aims to bridge this gap. It argues investors can and should exercise the influence of their capital to promote Responsible AI in their portfolios of direct investments, in their work with investment partners and in the ecosystem at…
Portfolios With Low ESG Risk Outperform in Times of Crisis
“Market patterns during past shocks suggest minimizing ESG risk is good business.” [COMMENTARY] There have been several studies showing this — that such portfolios improved comparative returns. Portfolios With Low ESG Risk Outperform in Times of Crisis, by Valerio Baselli, June 19, 2024, Morningstar UK, UK.
How Generative AI transforms ESG data into sustainable investment success
“By transforming how data is managed, analyzed, and utilized, Generative AI offers substantial promise for those committed to enhancing their investment practices with sustainability at the core.” [COMMENTARY] Anyone engaged in investment or portfolio analysis and research will need to become proficient in using Generative AI. This is a good introductory article — with a…
Clean Tech Co. Says It Has Built a New ‘Reliable, Safe’ Battery
“Clean technology company BioLargo Inc. (BLGO:OTCQB) announced it has manufactured its “liquid sodium” prototype battery cells that it says are long-lasting and safer than lithium-ion batteries. One technical analyst said the stock is a great spot to buy.” [COMMENTARY] Some investors are betting that other types of batteries will soon surpass lithium-ion batteries. This could…
Ethical Investments
“Contrary to what appears to be a widespread assumption, I demonstrate that fiduciary law does not inherently prohibit ethical investments.” [COMMENTARY] This Harvard paper elaborates the view that ESG can legally be shown to be central to investment selection in ERISA and other regulated funds. Fund managers and investors everywhere to review it. Ethical Investments,…
The top 5 renewable energy trends shaping the sector
“Energy transition investment is on the rise, with $303 billion invested in the U.S. in 2023, according to BloombergNEF, up 22% from the prior year. Still, that is a fraction of the $1.77 trillion that was invested globally.” [COMMENTARY] This is a useful article to read to gain a more detailed understanding of where renewable…
Sovereign Environmental, Social, and Governance (ESG) Investing: Chasing Elusive Sustainability
“This paper evaluates the progression of the sovereign ESG landscape since the initial comprehensive assessment of the sector in 2021 in ‘Demystifying Sovereign ESG’ by conducting a comparative analysis of the current sovereign ESG methodologies of commercial ESG providers.” [COMMENTARY] Assets of sovereign wealth funds continue to increase significantly. Many of them use ESG parameters…
2 Major Changes to the SEC Climate Rule, and What They Mean for Investors
“Investors and companies must navigate major differences in US and international reporting frameworks.” [COMMENTARY] A few years ago I was hopeful that the major US, EU, and other securities regulators could arrive at common corporate ESG-sustainable reporting frameworks. However, this appears less likely now. The result could be significantly added burdens for investors and all…
