“Climate-aligned investors are focusing more on private dialogues and corporate transition plans than ESG resolutions.” [COMMENTARY] The success of sustainability, ESG, and climate change resolutions has been low for several years now. So, many in activist communities associated with these issues are finding more success in private discussions with corporate management. Shareholder activists are changing…

“Activist investors want Amazon, Google and Meta to explain how they’ll reconcile power-hungry data centers with their pledges to cut emissions.” [COMMENTARY] Many ethical and sustainable investors are likely asking the same questions and wondering whether their investments in these tech companies still align with their personal values. Shareholders Press Big Tech Over AI Energy…

“Summary of findings from the Future of Responsible Investing Asset Owner Group and broader project, convened by the PRI (United Nations Principles for Responsible Investment).” [COMMENTARY] The UN’s PRI is a premier organization in the global responsible investment industry. What their new report has to say is worth reading. The future of responsible investing, by…

“For many business leaders, ESG reporting can feel less like following a map and more like navigating a maze. There is no shortage of standards, frameworks and disclosure models to choose from.” [COMMENTARY] As each country and region adopts often incompatible regulations and guidelines, it creates difficulties for companies. Investors need to be aware of…

“When Norway’s $2.2 trillion wealth fund — the world’s largest — sells a company’s ⁠shares ⁠over ethical concerns, should it explain why? This seemingly ⁠simple question has become a dilemma for its guardians, the finance minister told Reuters, as a government commission reviews the rules ​that have made the fund a global benchmark for ethical…

“Europe’s solar boom is powered by Chinese technology. But experts warn Chinese-made tech could threaten the continent’s safety and even create blackouts. Now, Brussels is aiming to reduce its dependence.” [COMMENTARY] The fears are centred around a possible security threat to European power systems and grids. One particular concern is that the heart of solar-powered…

“Our conclusion is similar regarding the effect of willing-to-sacrifice shareholders on the workings of the managerial incentive structure’s sticks and carrots. We show that only in narrow circumstances will their presence lead to the firm making decisions differently from where all shareholders prefer share value maximization.” [COMMENTARY] Though this paper is academic, it seems to…

“The DJ BIC are float-adjusted market capitalization weighted indices that track equity markets while applying a sustainability best-in-class selection process.” [COMMENTARY] The companies included in these indices usually have high ESG and sustainability credentials. It’s always interesting to see in any year who they drop and include. S&P Dow Jones Indices Announces Dow Jones Best-in-Class…

“Sentiment remains strong globally, even as average portfolio allocations edged down slightly. Expectations about returns continue to shape investment decisions.” [COMMENTARY] This Morgan Stanley survey shows continuing and strong allocations to sustainable investing. With growing concerns about fossil fuel-related energy supplies due to wars, etc., sustainable investing that emphasizes renewable energy, ev’s, and so forth,…

“By emphasizing the positive effects of DEI on innovation, decision-making, employee productivity and retention, and overall corporate performance, companies can make the case that DEI is not just a moral imperative but a strategic advantage.” [COMMENTARY] I believe that in some sectors of national activity, the case for DEI has sometimes been overdone. However, in…

“For investors, ESG scores can serve as useful signals of financial reporting quality, facilitating the identification of firms demonstrating superior financial accountability and transparency. For companies, ESG engagement is a governance tool that bolsters financial integrity and builds long‑term investor trust… [also] firms with stronger ESG performance are less likely to restate their financial statements.”…

“EQT AB, Europe’s biggest private equity firm, says the path to exiting investments in clean-energy developers and operators faces a growing number of hurdles. In many cases, such assets have become too big to be absorbed by the kinds of private or industrial buyers PE firms traditionally turn to when looking for an exit, according…

“Some are ditching all screens, some are introducing stronger restrictions.” [COMMENTARY] In this new era of wars, the ethics of investing in defence industries are topical for most ethical and sustainable investors. This article describes how some large investors are handling the subject. A return to arms: how asset owners are reevaluating their defence exclusions,…

“Companies are foregoing profits to do the right thing—a dicey decision that could bring lawsuits from shareholders, depending on how it’s presented, says Santiago Mejia, PhD, a professor of law and ethics in the Gabelli School of Business.” [COMPANIES] This is an informative read on ethical behaviour in business. Are Companies Allowed to Put Ethics…

“The government is obsessed with cleaning up electricity generation, even though it accounts for a far smaller total of our emissions – around 10%. So that obsession is pushing up the price of electricity and making it more expensive for people to switch to a heat pump or electric vehicle.” [COMMENTARY] It’s now abundantly clear…

“Every company running a serious internal audit program has two sets of findings: what the audit team documents internally, and what the organization communicates externally. In most operating areas, those two records are close enough that the gap doesn’t become a problem. In environmental compliance, they’re diverging — and enforcement agencies have started to notice.”…

“We find that executives’ long-termism positively affects corporate ESG performance, and the relationship is strengthened by minority shareholder activism and common institutional ownership.” [COMMENTARY] It’s often believed that the ‘short-termism’ of many corporate leaders leads to long-term organizational and financial harms. This study, though focused on long-term ESG performance, could lend credibility to that argument.…

“Sustainable bonds have grown rapidly over the past decade, but inconsistent practices and transparency gaps risk undermining their credibility. Here’s what new OECD data reveals about the market – and what policymakers can do to protect investor interests.” [COMMENTARY] This article should be read by anyone who invests in green bonds. It’s a good overview…

“The intent of the rule is to protect clients, and the principles behind it are sensible. Communications must not be misleading. Claims must be substantiated. Information must be fair and balanced. Investor protection matters.” [COMMENTARY] Applying to the US, a new ‘marketing rule’ by the US SEC is making financial advisors there extremely careful in…

“Technology stocks are an increasingly uneasy fit in sustainable fund portfolios, due to the associated environmental, social and governance (ESG) risks – from greenhouse gas emissions to data privacy concerns and use in weaponry. Yet many sustainable funds remain invested in the sector.” [COMMENTARY] Though the article focuses on UK funds, the same situation exists…