Since 2002
Postings and Commentaries by Ron Robins
ESG Funds: Do They Walk the Talk?
“Sustainable investors are causing companies to focus on improving their ESG scores to either gain a competitive advantage or avoid being disadvantaged—there is greater corporate awareness of these issues, and awareness is followed by action. That’s good news for sustainable investors, who are not only able to express their values through their investments, but now…
Solar Power Is Poised for Crisis in US Despite Federal Subsidies
“Despite the generous tax breaks they are receiving from the Biden administration, many US companies planning to build solar factories can expect to suffer severely or fail altogether, according to an analysis by BloombergNEF.” [COMMENTARY] Superficially, with the recent subsidies, the new US plants might seem competitive. However, their costs for materials, labour, etc., are…
2023 Humankind 100 List Announced Today
“Announced today the release of 2023’s ‘Humankind 100,’ its annual ranking of the top U.S. companies offering the greatest benefit to humanity, based on Humankind Investments’ proprietary Humankind Value methodology.” [COMMENTARY] Humankind’s companies’ ranking is derived using a methodology that will appeal to many ethical and sustainable investors. 2023 Humankind 100 List Announced Today, press…
US anti-ESG discourse implications
“We do not expect anti-ESG headlines to meaningfully impact opportunities for investors, for two reasons. First, fundamental drivers supporting the SI (sustainable investing) thesis remain in place; consumer focus remains steadfast (between 2017 and 2022, products with ESG claims grew 1.7 percentage points faster than peers, according to McKinsey), while the cost of inaction can…
Research: The ESG Issues That Matter Most to People
“Research conducted by nonprofit organization JUST Capital highlights the importance of public opinion in determining corporate behaviors. The study reveals that when evaluating American firms, the public places a significant emphasis on the treatment of workers.” [COMMENTARY] The JUST Capital study provides great insight into the views and weights of various corporate stakeholders. It has…
ESG investing, narrative economics and CAPE ratio
Nobel laureate economist Robert Shiller: “We don’t know, but it is possible that in the long run, businesses with better ESG scores will also make more profits. This seems counterintuitive, but it can happen. If it brings better, more idealistic people in as managers, and they anticipate problems caused by the environment in the future…
FEG Insight: Faith-Based Investing – Responsive Investing Solutions Exchange (RISE)
“Faith-based investors who pursue investing solely for financial gain can potentially experience a disconnect from their values. By practicing investment stewardship and selectively choosing investments that match one’s values rather than simply seeking profit, an investor can establish a double-bottom line: to seek returns while also working to have a positive impact on the world.”…
“Progressive” ESG Shareholder Activism: Qualitative Trends
“Perhaps even more interesting is how the nature of ESG shareholder resolutions—what they specifically ask companies to do—has shifted over the years to rapidly ramp up the pressure on American business.” [COMMENTARY] ESG resolutions are becoming more diverse and demanding, leading some to question their relevance to actual corporate operations. Also, there is evidence that…
Unveiling Saudi Aramco’s Shocking Capitalization on Sustainable Investments
“According to a report by Bloomberg, Saudi Aramco, the world’s biggest oil company, successfully secured funds from sustainable investors through a complex financial arrangement. Although Aramco did not initially intend to tap into funds designated for ESG goals, the involvement of ESG investors in financing a fossil fuel company raises concerns about the strategies used in the Gulf region.”…
ESG Remains Important for Pension Funds and Asset Owners
“Financial relevance trumps politics, according to interviews conducted by Morningstar Indexes and Sustainalytics.” [COMMENTARY] The factors underlying ESG are relevant to corporate performance and profits. That’s it! Period! However, the main quibble I have is how ESG raters mostly ignore in their corporate ratings the ‘societal value’ of what a company produces. By value, I…
The time for engaging with fossil fuel companies is over
“The Church of England has announced it will divest from Shell, finally acknowledging the failure of more than a decade of investor efforts to convince the oil and gas sector to align with global climate goals.” [COMMENTARY] There are still many others that believe engagement can help mold the direction of companies to a more sustainable…
Why investors should integrate green revenues into portfolio construction
“In a recent paper researchers from Singapore’s GIC, FTSE Russell and asset management group GMO explain why investors should integrate green revenues into their portfolio construction, arguing that the sustainability metric Weighted Average Green Revenue (WAGR) is a useful tool for investors looking to assess and integrate green opportunities.” [COMMENTARY] The biggest failure of the standard…
Committed to Sustainable Investing? Three Questions to Ask Your Adviser
“As sustainable, responsible and impact investing (SRI) continues to gain popularity, more investors have questions and are curious to see if it’s right for them.” [COMMENTARY] They are good questions to ask. To find a suitable advisor this link Who should invest my money? might be helpful. Committed to Sustainable Investing? Three Questions to Ask Your Adviser,…
(US) Supreme Court Rules against University Affirmative Action Policies: Implications for ESG Investing and Engagement
“Although the decision applies directly only to educational institutions, it may have significant collateral impact on ESG investing and engagement in both the public and private markets. In this Alert, we provide a summary of the decision as well as a discussion of potential implications for ESG investing practices.” [COMMENTARY] This article indicates that there…
ISSB Takes The Lead On Global Sustainability Disclosure Standards – Will The U.S. Follow?
“The ISSB standards have substantial international support, and are widely viewed as paving the way for convergence on a single global sustainability disclosure standard.” [COMMENTARY] This law firm provides a great overview of the new ISSB standards and their implications. ISSB Takes The Lead On Global Sustainability Disclosure Standards – Will The U.S. Follow? July…
Will new global standard for corporate sustainability reporting corral wild west of ESG?
“The global accounting profession has launched a single standard for company environmental, social and governance (ESG) reporting, raising expectations that the bewildering array of corporate sustainability disclosure systems will finally come to an end.” [COMMENTARY] Critics of ESG have for years decried the lack of corporate ESG reporting standards. This new standard could mark an…
The Politicians Who Oppose Investment Freedom
“If the performance of ESG funds has been acceptable, which it unquestionably has been, and the underlying rationale for the practice cannot be dismissed, then the only reason left to oppose ESG funds is animus. Rep. Barr wishes to impede ESG investing because he dislikes its goals.” [COMMENTARY] Over most periods that ESG funds have…
Who decides what ESG is and how to make investments greener – new research
“Our recently published research explores this question by looking at the actual sustainability impact that these funds have. Although financial industry groups claim that one-third of all investment assets are already sustainable, our research shows most ESG investing actually does not create any meaningful sustainability impact.” [COMMENTARY] It seems true that most ‘light’ ESG funds would have any…
