Since 2002
Postings and Commentaries by Ron Robins
A Sustainable Future: Professor Kelly Shue, Yale University School of Management, on Counterproductive Sustainable Investing
“When can sustainable investing be counterproductive? Listen to Jason Mitchell discuss with Professor Kelly Shue, Yale University School of Management, why brown firms—not green firms—will drive the greatest emissions savings, how the cost of capital can be a powerful lever for behaviour change, and why it’s vital that sustainable investors move more towards energy transition-type…
Net zero and its discontents: behavioural economist David Lewis on ESG
“Behavioural economist Dr. David Lewis explains the backlash ESG is facing in North America, and suggests how to counter it.” [COMMENTARY] This is a good article to understand what to say to those anti-ESG types! Net zero and its discontents: behavioural economist David Lewis on ESG, by Isaac Hanson, September 15, 2023, Private Banker International,…
Governance tops global investors’ sustainable investment priority lists
“The ‘G’ of ESG has become the top priority for investors in 2023, although there has been an overall drop in the implementation of sustainable investment generally, FTSE Russell has found.” [COMMENTARY] It’s unsurprising that ‘governance’ tops sustainable investment priority lists. Governance is the foundation upon which a business thrives — or collapses. Environmental and…
Avoiding Stranded Assets: risk aversion in oil development
“Carbon Tracker has long warned of the risk of investing in future stranded assets; i.e., assets that fail to generate the returns expected when sanctioned. The data evidence some level of risk averse behavior by industry over the past decade, yet some are advocating that industry returns to its old ways; this could be a mistake.”…
A More Impactful Strategy for Sustainable Investing
“The effectiveness of sustainable investing has been challenged, with critics like Tariq Fancy describing it as a mere placebo. Amidst rising skepticism and stricter disclosure requirements, a deeper dive reveals that traditional methods of influencing companies, namely ‘voice’ (shareholder engagement) and ‘exit’ (portfolio screening), are not exhaustive. Through a comprehensive review of over 3,500 research…
Nature, our most precious asset
“The ECB’s recent research estimated that approximately 72% of companies in the euro area are highly dependent on nature, while almost 75% of bank loans to companies in the euro area are granted to those with a high dependency on ecosystem services provided by nature.” [COMMENTARY] Corporate financial statements will — in the not-so-distant future…
The EU’s New ESG Disclosure Rules Could Spark Securities Litigation in the US
“The EU’s comprehensive new ESG disclosure requirements will force many multinationals with operations in Europe to decide how much information to disclose where, and to take measures to ensure their disclosures are consistent.” [COMMENTARY] Companies, globally, will be required to report their ESG data and information according to the regulators with the most discerning requirements.…
Breaking up with ESG is hard to do
“Republican politicians aiming to punish Wall Street firms over sustainable investing policies that they say are hurting everyday Americans are meeting resistance from officials in their own states.” [COMMENTARY] Ignoring environmental factors that lead to multi-billion dollar lawsuits or fines; social factors that give rise to poor labour relations leading to strikes; or governance issues…
The State of Climate Disclosure and Governance
“Climate and environmental disclosure and governance are not new topics; however, coincident with the heightened concerns about the impacts of climate change, stakeholders’ interest in and expectations relating to corporate disclosure and governance have increased dramatically over the past several years.” [COMMENTARY] This is a comprehensive report on the state of corporate climate disclosure and…
Barclays Warns of Bond Risk Few Creditors Are Pricing Right
“The risk in question is the failure of countries to adequately protect their natural capital, putting water, air and soil resources in jeopardy and impacting key sectors such as agriculture, a team of analysts led by Maggie O’Neal, Barclays’ global head of ESG research, wrote in the report published on Monday.” [COMMENTARY] The loss of…
ESG in Mid-2023: Making Sense of the Moment
“But despite a heavy stream of opinion pieces, the business case for incorporating non-financial metrics into an evaluation of a company’s risk and opportunity profile (the very crux of ESG efforts) remains clear.” [COMMENTARY] This is a terrific analysis of the state of ESG in the US and published in the prestigious Harvard Law School…
The SEC May Be Overstepping Its Authority In ESG/ Climate Related Disclosure Standards
“The U.S. Securities and Exchange Commission is expected to announce Climate Related Disclosure requirements in October 2023. Even before announcement, concerns are rising that the new rule could be outside the SEC’s authority and unable to sustain a legal challenge before the Supreme Court.” [COMMENTARY] Should the SEC proceed with including climate-related disclosure for companies there’s…
Wellington, Franklin Templeton Move Up in ESG Commitment Level
“In a recent report, Morningstar shared analysis of 108 firms around the world, broken down as shown in the chart below. Just eight asset managers earned top marks, followed by 21 that earned the next-highest rating of Advanced.” [COMMENTARY] This is the kind of research Morningstar is noted for. Serious ethical and sustainable investors should review…
UK Watchdog Cracks Down on Junk Carbon Offsets as Stranded Assets Surge
“The comments follow an investigation published last week in the journal Science, which found that the vast majority of a potential 89 million carbon offsets issued by forest protection projects don’t represent real emissions reductions. The conclusions come as a number of major traders in the offsets market have acknowledged that they’re having to treat…
Former BlackRock exec Tariq Fancy: Many ESG experts are ‘underqualified’
“The ESG industry is moving from marketing spiel to real investment opportunities, according to sustainability expert Tariq Fancy, but many of those working in the sector still don’t fully understand it.” [COMMENTARY] The ESG industry is maturing and realizing that greenwashing doesn’t cut it! Former BlackRock exec Tariq Fancy: Many ESG experts are ‘underqualified’, by…
‘Not just money and math’: Young people are willing to sacrifice returns for ESG
“Nearly two-thirds of Gen Z investors want to allocate their portfolios in a way that supports causes they care about, according to a July survey of some 4,000 current and aspiring investors by U.S. Bank. That’s compared with 59% of millennials, 45% of Gen X and 30% of boomers.” [COMMENTARY] School children in recent decades…
What if we slapped carbon taxes on shareholders not consumers?
“Focusing carbon taxes on shareholder income linked to GHG emissions could help pressure companies to lower their emissions.” [COMMENTARY] A fascinating idea. However, I’d need to examine it thoroughly before giving it my okay. What if we slapped carbon taxes on shareholders not consumers? By Jared Starr, August 18, 2023, Corporate Knights, Canada.
Sustainable investing can help support portfolios during market volatility
“Sustainable investing includes multiple strategies applying distinct approaches and can be applied across asset classes. Here we highlight why diversifying across sustainable investing building blocks can support portfolios over periods of market volatility.” [COMMENTARY] This is a good overview of sustainable investing as well as making the point that it can add value to a…
