“In a new publication in the journal Tourism Economics, Lee and his collaborators reviewed the research literature on how CSR related to financial performance for hotels, restaurants, casinos and other businesses in the hospitality and tourism industry. Overall, many researchers have found evidence that CSR provided financial benefits, but that was not the case in…

“Our results from studying actively managed mutual funds support the hypothesis that ESG information is financially material, but complex. Specialized fund managers can incorporate such information into their investment process to the benefit of their investors, especially when investing in stocks with a high level of disagreement in ESG ratings. Thus, regardless of an investor’s…

“The impending wave of disclosure rules foreshadows a new era of transparency that will transform the market by enabling investors to see ESG risks and evaluate sustainability leadership like never before.” [COMMENTARY] I agree with Mr. Lanz’s assessment. It’ll open up a new era in investment analysis and recommendations. I’ve been desiring this for a…

“Adam Matthews, chief responsible investment officer at the Church of England Pensions Board, said the risks posed to the renewables boom via the mining industry aren’t getting nearly enough attention.” [COMMENTARY] This article is about a major concern I’ve had for decades. To fulfill the metals and material requirements for the clean energy future we…

“ESG is poised to become a major element of nonfinancial reporting at the very moment that it is becoming highly controversial andpoliticized. New European Union rules regarding mandatory ESG reporting will affect public and private U.S. companies that meet certain EU-presence thresholds or–significantly–are part of the value chain of an entity that is required to…

“Asset management group Nuveen — part of TIAA —polled 573 US investorsand found that more than three quarters (76%) felt that responsible investment should always be factored into investment processes. In addition, 80% said responsible investment should be viewed as a long-term strategy. Two thirds (67%) agreed that responsible investing strategies could lessen the impact…

“The European Union hasfinalizedthe Corporate Sustainability Reporting Directive (‘CSRD’) that will introduce more detailed sustainability reporting requirements for EU companies, non-EU companies meeting certain thresholds for net turnover in the EU and companies with securities listed on a regulated EU market.” [COMMENTARY] This legislation will likely apply to numerous companies based outside of Europe as…

“In a recent opinion piece in theFinancial Times, Toby Nangle argues that asset managers, in particular those who pride themselves on upholding environmental, social, and governance (ESG) values, should stop bidding for work with authoritarian states that have a poor human rights track record. The list of such states is not only long, but also…

“Giant bricks are not what most people think of when they hear the words ‘energy storage’, but they are a key element of a gravity-based system that could help the world manage an increasing dependence on renewable electricity generation.” [COMMENTARY] I believe that the energy storage problem for wind and solar is in the process…

“Reporting ESG information is now omnipresent among companies worldwide, reaching all-time highs in 2021 with96% of the S&P 500and81% of the Russell 1000publishing a sustainability report. However, this information’s reliability, meaningfulness, and use are suspect.” [COMMENTARY] This is a valuable article for company management and investors to read and understand. Integrated reporting, particularly, has to…

“The United Nations Environment Program (UNEP) and S&P Global announced the Nature Risk Profile,a methodologyto analyze companies’ impacts and dependencies on nature, at the World Economic Forum annual meeting in Davos, Switzerland, on Tuesday. It comes on the heels ofthe agreementmade in December at the U.N. Biodiversity Conference (COP15) held in Montreal.” [COMMENTARY] Hooray, hooray!…

“Meet the latest Global 100 companies driving the transition to a low-carbon, circular economy.” [COMMENTARY] This is my favorite annual listing of the top global sustainable companies!The 100 most sustainable companies of 2023 by Corporate Knights, by Corporate Knights, January 2023, Canada.

“But looking at a three-year time horizon is different. Seventy-four percent of ESG products outperformed the benchmark, with a median return of 5.9%. While environmentally focused products account for 30% of the global ESG universe — they accounted for 40% of the products that outperformed — again driven by clean energy/energy transition.” [COMMENTARY] Recently ESG…

? “We take a look at the returns of companies that score well for governance risk.” [COMMENTARY] This is an interesting analysis of governance in relation to market returns, in the London market. Generally, good governance is the key to corporate success. It’s illogical it could be otherwise.Does Good Governance Mean Better Returns? By Sunniva…

“Paul Tudor Jones, billionaire hedge fund manager and the co-founder of nonprofit Just Capital, says workers should be the focus of ESG discussions, not the environment.” [COMMENTARY] His main point is that ESG is mischaracterized by many critics. I completely agree with him. When I first became aware of the term, I believed it to…

“We (1) outline the history of the concept, (2) concisely define SRI and related terms, (3) propose a trinomial sustainability indicator framework (the Cambridge SRI indicator framework) for conceptualisation, and (4) use this framework to provide a structured overview of sustainability indicators for SRIs.” [COMMENTARY] In this paper, the researchers attempt to define socially responsible…

“While the latest DOL ruling on ESG implementation in retirement plans is an enormous step forward, more guidance is needed. However, there are several approaches and options that are essential for plan sponsors to keep in mind.” [COMMENTARY] A good overview of what US plan sponsors need to understand and decide upon concerning the adoption…

“There is not really such a thing as ESG investing, only ESG analysis.” [COMMENTARY] This is a sound argument about the nature of ESG by a London Business School professor.The end of ESG, by Alex Edmans, January 3, 2023, ETFstream.com, UK.

“Sustainable investing is in the mainstream now but navigating ESG will remain a challenge in the New Year.” [COMMENTARY] This is a good review of the situation surrounding ESG investing.5 Threats to Sustainable Investing in 2023. by Sara Silano, December 30, 2022, Morningstar, UK.

“It’s (ESG) simply about companies and investors managing material risk factors to ensure long-term value creation.” [COMMENTARY] Harvard Business School and Oxford University professor Robert Eccles elaborates on why the criticism of ESG is misplaced.ESG Is Not About Ethical Standards And Ethical Values, by Robert G. Eccles, December 29, 2022, Forbes, USA.