Since 2002
Postings and Commentaries by Ron Robins
Is the ESG Investment Bubble Bursting?
“ESG funds are experiencing a decrease in new inflows and increased closures due to underperformance and investor withdrawal. Regulatory tightening, greenwashing exposure, and a return to oil and gas investments contribute to the declining appeal of ESG funds. Despite previous overperformance, ESG funds are now struggling as investor sentiment shifts back towards traditional energy sectors…
Bank of England Takes Strides Towards Green Investments
“In a significant move, it has integrated climate considerations into its corporate bond purchase scheme. The decision has been taken as part of a broader effort by central banks globally to incorporate environmental sustainability into their monetary policy frameworks.” [COMMENTARY] The Bank of England, the European Central Bank, and a few other central banks are…
Making oil is more profitable than saving the planet. These numbers tell the story
“20% to 50%. That’s the internal rate of return — the money a company will make off the capital it puts into a project — for a company producing U.S. oil and gas right now… By comparison, 5% to 10% (is) how much money… the same company could expect to make if it put money…
Top 10 ESG Developments for 2023
“2023 saw terms like “ESG,” “greenwashing,” and “circular economy” come into common use. We also saw a tsunami of other environmental, social, and governance (ESG)-related developments at the international, federal, and state levels.” [COMMENTARY] This is a useful review of developments in the ESG space during 2023. Top 10 ESG Developments for 2023, by Amy…
Unlocking the Hidden Potential in ESG Data
“Being at the forefront of tackling the complex and challenging ESG data landscape presents unique opportunities for investors by helping to expand the investment universe and access more datasets with alpha potential.” [COMMENTARY] Many ethical and sustainable investors might appreciate the guidance given in this article regarding understanding and analyzing ESG data and information. Unlocking…
America’s Most Responsible Companies 2024
“For the fifth year in a row, Newsweek has partnered with global research and data firm Statista for our annual list of America’s Most Responsible Companies… This year’s top overall position is held by Merck, having an impressive score of 92 out of 100, with Xylem following closely at 91.3 and HP, which held the No. 1…
Can I invest sustainably across my portfolio?
“The sustainability transition is not just driven by policy, as investors and corporations alike are integrating SI into their portfolios and businesses.” [COMMENTARY] There’s a full paper on this subject with a link to it in the article. Can I invest sustainably across my portfolio? Main contributors – Jon Gordon, Stephanie Choi, UBS Wealth Management,…
ESG and Passive Investing Do Not Mix
“The complex, long-term nature of sustainable investing makes it inherently an active management discipline.” [COMMENTARY] I like what this writer says. Incidentally, for anyone interested in creating their own ESG and sustainable portfolio, see my DIY Ethical-Sustainable Investing Pays Tutorial! ESG and Passive Investing Do Not Mix, by Daniel Hanson, November 27, 2023, Wealth Management, USA.
Asset Managers Quietly Add ‘ESG’ to Portfolios of Defense Stocks
“At the end of the third quarter, 1,238 funds claiming to “promote” environmental, social and good governance goals held stocks in the industry classification code Aerospace & Defense, according to Morningstar Inc. data. That’s roughly 25% more than in March last year, right after Russia invaded Ukraine. A large portion of those funds converted to…
What to look for when investing in green, social, and sustainability bonds
“The emergence of sustainable bonds as an asset class has been relatively rapid, and the spectrum of different classifications of investments can naturally be confusing for investors. To navigate this landscape, investors should look out for certain key criteria when investing in green, social and sustainability bonds (GSS).” [COMMENTARY] This article is a good guide…
Competitive Pressure and ESG
“A firm’s exposure to competition is negatively associated with its ESG performance. We measure domestic competitive pressure by product market fluidity, based on product text descriptions, and find that higher fluidity – indicating higher product market threats – is associated with lower ESG scores. Fluidity matters more for financially constrained firms, capital-intensive industries, and costly…
Making ESG Real: A Return to Values-Driven Investing
“As environmental, social, and governance strategies continue to face ill-informed attacks by conservative politicians, Making ESG Real assesses sincere critiques of responsible investment, and proposes how to achieve its original goals.” [COMMMENTARY] This is an informed and well-thought-out proposal for the future of the ESG cause. Making ESG Real: A Return to Values-Driven Investing, by…
Global Survey of ESG Regulations for Asset Managers – ESG and the Sustainable Economy Handbook
“In the latest chapter of the ESG and the Sustainable Economy Handbook, our lawyers—located in the Americas (the United States), Asia (Hong Kong, Japan, and Singapore), Australia, and Europe (European Union including Ireland and Luxembourg and the United Kingdom)—provide an overview of their regional regulation by responding to the same eight questions regarding the existing…
CFA Institute-Led Group Publishes New Definitions for Responsible Investment
“The new definitions aim to provide language for investors that allows them to communicate their responsible investment practices accurately and consistently, according to the CFA.” [COMMENTARY] It’s a good step forward to attempt the clarification of these terms. It remains to be seen how widely they’ll be adopted. CFA Institute-Led Group Publishes New Definitions for Responsible Investment, by…
Return ESG to ‘common-sense’ values investing
“While an ill-informed ESG backlash continues to dominate some corners of the globe, in other parts another debate is taking place: should E, S and G themes be siloed and the bundling of ESG disbanded?” [COMMENTARY] I wholeheartedly agree with the unbundling of E, S, and G grading! Also added should be — though somewhat subjective…
Clean energy is the future, but stocks aren’t acting like it. Here’s why.
“Despite growing calls for an accelerated global shift to clean energy, stocks in the sector vastly underperforming the broader market. In fact, they’re some of the worst performers this year.” [COMMENTARY] Higher interest rates have pummeled clean energy projects. Thus, their future earnings are jeopardized and lower stock prices are occurring. Should central banks and…
Bankers Seek Legal Cover After Backing $1.5 Trillion of ESG Debt
“Bankers servicing one of the world’s biggest ESG debt markets are now actively seeking legal protections to guard against the potential greenwashing allegations that may be ahead.” [COMMENTARY] It seems that some sustainability-linked loans are backed by sustainability metrics that were often unavailable to the public. Note: were sloppy bank practices in play so that…
Faith-based investing on the rise as world grows more chaotic
“ESG may have dominated the headlines, but faith-based investing has steadily – and quietly — been on the rise.” [COMMENTARY] In difficult times people tend to become more religious. Hence, in these increasingly troubling times, it could be expected that faith-based investing would grow. Furthermore — and this is a point I made early in the…
IBD’s 100 Best ESG Companies For 2023
“Public companies that made our 2023 100 best ESG stocks list combine high Dow Jones sustainability scores with superior IBD technical and fundamental stock ratings. They are standouts for ESG investing.” [COMMENTARY] Another good company ranking for ethical and sustainable investors to review. IBD’s 100 Best ESG Companies For 2023, by Investor’s Business Daily, October…
What Would Happen to ESG Proposals If Vanguard, BlackRock and State Street Didn’t Vote?
“It’s clear that there would have been many more key resolutions in the 2022 and 2023 proxy years if it weren’t for the damping effect of the Big Three’s voting decisions taken in aggregate.” [COMMENTARY] It appears the proxy voting decisions of the big three — Vanguard, BlackRock, and State Street — might be damaging…
