Since 2002
Postings and Commentaries by Ron Robins
Why biodiversity is next for green bond expansion
“So far, green bond issuers have successfully embraced funding the transition toward carbon neutrality. But far fewer issuers are currently looking at regenerative biodiversity projects or initiatives that seek to protect our ecosystems from loss.” [COMMENTARY] I wrote in a previous post about biodiversity and nature-themed funds. This article focuses on the fixed-income side of…
Comment: Why biodiversity is about to go mainstream in ESG investing
“Biodiversity and nature-themed funds are mushrooming, with assets under management in European funds targeting biodiversity quadrupling in the 12 months to September, according to data from the European Securities and Markets Authority, though admittedly these funds still represent a tiny fraction of the market.” [COMMENTARY] The creation of biodiversity and nature-themed funds (both equity and…
Do Honest Countries Make the Best Investments?
“International stock investors don’t talk much about ‘national ethics’ — but perhaps they should. Can you even measure honesty?” [COMMENTARY] This is an article showing great insight into whether ethical investors should care about the ethics of the countries where they invest. It’s a rare article on the subject. Do Honest Countries Make the Best…
Smoke and mirrors: A look inside ESG fund portfolios
“This column reviews novel empirical evidence, which shows that fund managers may game regulatory disclosure to disguise themselves as sustainable, while including higher performing yet controversial assets in their portfolios. The findings highlight the importance of scrutiny and regulation to disentangle true sustainability from greenwashing.” [COMMENTARY] This article digs deep into greenwashing. Fortunately, regulators such…
Trends for the Next Decade of Sustainable Investing
“Sustainable finance will be shaped by new investment strategies, demand for resources and more stringent regulations.” [COMMENTARY] Morgan Stanley gives here their view of what lies ahead for sustainable investing over the next decade. Trends for the Next Decade of Sustainable Investing, by Jessica Alsford, October 13, 2023, Institute for Sustainable Investing, Morgan Stanley, USA,
What to Know About the SEC’s ESG Investing Rules
“On September 20, the (US) SEC updated its rules that govern environmental, social and governance (‘ESG’) investment funds. The new rule updates how these funds are named, requiring a fund that advertises itself as ESG to hold at least 80% of its investments in related assets.” [COMMENTARY] These new rules might still prove tricky to…
Study Finds Some ESG Investors Have More Than Just Ethical Motives
“A new study found that while ESG investors are motivated by ethical concerns, some of them also expect those investments to outperform the U.S. stock market, writes Daisy Maxey for The Wall Street Journal.” [COMMENTARY] Unsurprisingly, some ESG-ethical investors are motivated for outsize returns! Study Finds Some ESG Investors Have More Than Just Ethical Motives, by…
Is Passive the Answer to ESG Investing?
“The number of ESG benchmarks and indices are growing, but with increased diversity comes a broad risk-return profile.” [COMMMENTARY] For European ESG-oriented investors, passive investing, particularly in ETFs, has gained considerable ground on active investing — where stocks are individually picked. This article in Morningstar competently discuses the pros and cons of the passive versus…
EU Approves World’s First Green Bond Standards to Combat Greenwashing
“The European Union has introduced pioneering standards for ‘green’ bonds, aiming to combat greenwashing and promote sustainable investments.” [COMMENTARY] This is a great step forward. It’ll likely be copied by many other jurisdictions. EU Approves World’s First Green Bond Standards to Combat Greenwashing. Posted by piyush, October 7, 2023, Current Affairs ADA 24/7, India.
Does sustainable investing underperform?
“New research finds that when fund manager skill is discounted from the equation, sustainable investing portfolios performed at 0.2% lower than the proxy for the US market… However, recent research from Kroll found that companies with better ESG ratings outperformed their peers with lower ratings from 2013-2021.” [COMMENTARY] How do you measure ‘fund manager skill’ when funds…
ESG ratings: whose interests do they serve?
“Regulators and politicians are focusing on the accuracy, transparency and potential for conflicts of interest with sustainability scores.” [COMMENTARY] The question of who the ESG raters serve is important. More needs to be known as to how they’re funded, what affiliations they have, what conflicts of interest they have — particularly concerning board members —…
BIS: The Impact Of Green Investors On Stock Prices
“Contrary to the literature, we find a large fall in the stock prices of the high-emitting firms that are excluded and in turn an increase in stock prices of greener firms when the exclusion strategy is announced and during the transition process.” By Gong Cheng, Eric Jondeau, Benoit Mojon and Dimitri Vayanos, BIS Working Papers, No 1127, 29 September 2023.
Sustainability stock market league table: which rank best and worst?
“Our analysis ranks the world’s biggest stock markets by their sustainability credentials, providing an additional, underappreciated, lens on how to assess their risks and opportunities.” [COMMENTARY] Schroders, a highly reputable UK investment firm, is behind the analysis. Sustainability stock market league table: which rank best and worst? By Duncan Lamont and Hettie Mccarthy, September 27,…
ESG ETFs fail to shine over past 10 years
“Exchange traded funds investing on the basis of environmental, social and governance criteria have not beaten the market over the past decade, analysis has shown.” [COMMENTARY] The paper titled, “Sustainability Alpha in the Real World: Evidence from Exchange Traded Funds,” has yet to be peer-reviewed and published. What is clear is that you can slice…
The EU’s New ESG Disclosure Rules Could Spark Securities Litigation in the US
“The granular information required by the EU could feed litigation in the U.S. if the disclosures appear false or misleading, or are inconsistent with disclosures in other jurisdictions.” [COMMENTARY] Those companies engaged in greenwashing could be caught out! It’s going to make evaluating the investment credentials of many companies easier for ethical and sustainable investors.…
Is there ever a case for defence stocks in sustainable funds?
“City minister Andrew Griffith and defence minister James Cartlidge recently said it is perverse that the defensive sector is being shunned on environmental, social and governance (ESG) grounds. Faith Glasgow examines this debate.” [COMMENTARY] I believe it’s a personal decision whether any investor should include defense investments in their portfolio. It is certainly an important…
SEC Says ESG Funds Must Invest ’80 Percent Rule’ in Fight Against Greenwashing
“On Wednesday, the U.S. Securities and Exchange Commission published new rules to prevent greenwashing in mutual fund names… The latest SEC amendments modernize the Investment Company Act ‘Names Rule’ to ensure that funds match their purpose. It is the latest of the SEC’s efforts to fight greenwashing in the sustainable investment industry.” [COMMENTARY] This is a good…
Insider trading from top corporate executives spikes after audits, per U. of Minnesota study
“Insider selling on the part of top executives and directors at some public companies spikes in the weeks after they receive negative audit reports and before that information becomes public, per the study.” [COMMENTARY] Studies show that most people are susceptible to unethical behavior for personal profit if they think they can easily get away…
