Since 2002
Postings and Commentaries by Ron Robins
The Anti-ESG Fad Might Be Over Before It Got Going
“In the United States, criticism of sustainable investing has become incredibly politicized over the past year. To understand the timeline and their magnitude, in a recent study we took a look at the funds—Morningstar counts 26—that have picked up the anti-ESG banner. Although there’s been a lot of talk about anti-ESG funds, it’s not clear that…
Canada’s 50 fastest-growing green companies of 2023
“Topping the ‘public’ list is Li-Cycle, which provides end-of-life recycling and resource recovery for lithium-ion batteries. Between 2020 and 2021, the Toronto-based company grew its sales from $1.05 million to $9.1 million – a gain of 766%. Possibly even more remarkable are the three giant companies on the public list that achieved 2021 revenue numbers…
‘ESG’ is under attack. Here’s how CEOs can fight back
“Investors and corporations need to show why social impact initiatives are good for shareholders.” [COMMENTARY] What the anti-ESG critics absolutely fail to realize is that the E-S-G letters stand for activities that promote corporate financial performance as well as improving societal conditions! ‘ESG’ is under attack. Here’s how CEOs can fight back, by Stephanie Mehta,…
ESG Standards’ Good, Bad and Ugly
“My name is Sebastian Burca, and I am the Senior Associate Director of the Stigler Center. Today we’re happy to kick off the first event in our series Unpacking ESG, which investigates the ways ESG is, is not, and could be a force for social and environmental impact. Our conversation today will focus on standards,…
Where Is the Line Between Ethical and Unethical Investing?
“Professional investors have ample opportunity to sin—and face ample rules that aim to prevent them from doing so. Without doubt, their investment practices can be unethical. Retail investors face far fewer potential perils. One possibility, though, might be the internet-enabled practice of collaborating to damage a stock’s price. Permitting short-selling appears to be a public…
Mining for EVs viewed as positive environmental impact
“Institutional investors are increasingly viewing mining investments as impact investing if the firms are developing metals essential to crucial technology supply chains. This is among the findings of a new study by Tresor Gold, a junior mining company focused on exploration and development projects in West Africa.” [COMMENTARY] I’m in the camp that believes without…
1.5 Percent of Corporate Profits Can Transform the Fight Against Climate Change
“Fortune Global 500 companies made more than $2.2 trillion in annual profits over the last three years, according to a recent report by Climate Impact Partners. Investing only 1.5 percent of that — about $33.5 billion — to fund carbon reduction projects like forest conservation, reforestation and micro-renewables would be a massive step toward achieving the…
Insurance giants exit net-zero pact
“Some reinsurance companies have pledged to stop insuring new oil and gas projects. So why are they quitting the UN Net-Zero Insurance Alliance?” [COMMENTARY] It’s not entirely clear why these insurance companies are exiting However, some observers speculate that for competitive reasons, the insurance industry is looking for better international insurance regulations directed at climate…
ESG data can keep businesses accountable, but only if it can be trusted
“In a recent global survey, 82% of respondents said they want business leaders to do more on climate change. Yet, a global study of more than 1,000 executives found that 76% do not trust the data of their competitors’ sustainability reports. Worse, only 47% report a willingness to share their environmental, social and corporate governance (ESG) data with…
Comment: Why Europe’s new reporting standards could be a game-changer for nature
“This could be a year of singular importance in the history of international accounting. A new directive from Brussels provides a basis on which natural capital funding undertaken by corporations could ultimately be reflected as an asset on balance sheets.” [COMMENTARY] This development would be a dream come true for many of us who’ve been following…
Green Investing Could Push Polluters to Emit More Greenhouse Gases
“One common approach to sustainable investing is to provide capital for companies with low carbon emissions and withhold it for high-emissions firms. But rather than incentivizing polluters to cut back, research co-authored by Yale SOM’s Kelly Shue shows, such an approach may actually cause them to pollute more.” [COMMENTARY] This paper makes clear that investments are…
Investors dump mutual funds for equities too, not only ETFs
“Study on discretionary US investing shows trend towards individual stocks in portfolios.” [COMMENTARY] I think this a good development. I believe it means that investors are paying more attention to their portfolios. That was behind my idea to create the Ethical-Sustainable Investing Pays Tutorial! Investors dump mutual funds for equities too, not only ETFs, by Emma Boyde,…
How investible is natural capital?
“Natural capital is much bigger than people think. In the first paragraph I mentioned biodiversity breakdown as a bigger problem than climate change, but let’s put it into numbers as well: the annual value of ecosystem services is estimated at over $120 trillion, about 50% higher than global GDP. However, as Schroders’ Global Head of…
ESG could have saved Silicon Valley Bank
“One of the nation’s largest banks experienced a series of governance lapses that resulted in the mismanagement of interest-rate risk.” [COMMENTARY] I tried unsuccessfully to find an ESG rating for Silicon Valley Bank before its collapse. I presume that if it were rated the governance rating would or should’ve been bad. However, it’s rare for…
ESG, Non-ESG Investing Returns Differ Minimally, Says Research Affiliates
“But when portfolios are not cap-weighted, green-oriented investments do better, the firm finds… Part of that may be because the ESG funds and the Russell 1000 all hold the same stocks in their top 10, with Big Tech a common theme: Apple, Microsoft, Alphabet, etc.” [COMMENTARY] Yes, in reality, most large-cap ESG funds mostly mirror…
How the new EU directive will rewrite ESG reporting
“The European Union’s Corporate Sustainability Reporting Directive won’t just affect local companies, it will transform sustainability reporting around the globe.” [COMMENTARY] Companies that take an anti- ESG/sustainability stance in their activities may not be let into European markets. In effect, the US anti-woke crowd investing in anti-ESG/sustainable companies will likely see lower financial returns. So,…
Taking the Long View of ESG Investing
“The 2022 slump experienced by environmental, social, and governance (ESG) exchange traded funds has a silver lining in that it serves as a reminder that ESG is a style best deployed over long holding periods. Last year provided strong support for that notion, as many of the factors that previously propelled ESG funds fell by…
The Impracticality of Standardizing ESG Reporting (ESG: Myths and Realities)
“Verifying ESG information for internationally diversified companies with large and dispersed supply chains would be extremely costly, if not impossible, because companies might not have ready access to the ESG information they are expected to report, particularly as the requisite information resides outside their legal jurisdictions.” [COMMENTARY] The authors have a strong argument. However, ESG…
Research on What Returns to Expect from Green Investments Wins Kellogg’s Moskowitz Prize.
“From a field of over 160 submitted papers, Dissecting Green Returns was selected as the winner of the 2022 Moskowitz Prize at Northwestern University. The award, which recognizes high-impact research in sustainable finance, was presented to Lubos Pastor (University of Chicago Booth School of Business), Robert Stambaugh (The Wharton School), and Lucian Taylor (The Wharton School). The Moskowitz Prize, now in its 27th year,…
