“Rather than proposing improved definitions and metrics based on better data, The Economist argues that ‘it is better to focus simply on the E,’ for environmentally sound investments.” [COMMENTARY]I agree with the writer of this article that The Economist’s proposal to focus on the environment at the expense of the social and governance aspects of…

“A high sustainability rating does not necessarily equate to real sustainability impact (and profit).” [COMMENTARY]The article’s authors suggest that “investors should pay more attention to funds’ policies and track records around voting and engagement on sustainability issues than to their sustainability ratings.”Doing Good: Where Sustainable Investing Gets It Wrong, by Lucie Tepla, August 16, 2022,…

“‘Is it possible for companies to effectively report on the vast number of potential stakeholder-related metrics that would be required (carbon emissions, pollution and waste, human capital management, supply chain practices, product use and safety, etc.)?’ Similarly, should ESG ratings be subject to regulatory requirements similar to those applicable to major credit rating agencies?” [COMMENTARY]This…

“New regulatory rule-making around disclosure could push companies and financial services firms to move their ESG activities under the oversight of risk and compliance teams” [COMMENTARY]It’s easy to see that as ESG reporting becomes increasingly regulated that it’ll require compliance oversight.How regulations are moving ESG into the risk and compliance field, by Thomson Reuters Regulatory…

“Overall, the researchers comment that their analysis paints a ‘mixed picture about the actual participant interest, and drivers of demand, for ESG funds in DC plans and suggests that plan sponsors should take a thoughtful approach when considering adding ESG funds to an existing core menu.’” [COMMENTARY]It seems that employees investing in DC plans weren’t…

US Shareholder Voting On Environmental & Social Issues Continues To Increase. – [COMMENTARY] “Environmental and social issues were at the top of shareholders′ attention during the 2011 proxy season, according to Ernst & Young (E&Y). About 40% of all resolutions that proceeded to a vote revolved around environmental and social issues, up from 31% last…

“The future of green investing still seems secure–performance has been hit by a unique set of economic circumstances, younger investors are at the forefront of the ESG push, and managers are taking a second look at former no-go energy stocks as decarbonisation plans march forward.” [COMMENTARY]Yes, a unique set of circumstances has created a situation…

“While ESG investing gets promoted as a way for individuals to’invest with their principals,’such has been a windfall marketing scheme by Wall Street firms.” [COMMENTARY]The writer, Mr. Roberts, completely misses the whole idea of ESG: that is for investors to invest in companies that not only reflect high personal values but to invest in companies…

“The belief that achieving positive social impact automatically means sacrificing attractive return on investment–drives many investors to avoid ‘impact’ but embrace ‘ESG.’” [COMMENTARY]The article quotes the Ford Foundation with achieving significant impact investment financial returns and is an encouragement for others to get into the impact space.Investors Are Embracing ESG But Avoiding Impact. What They’re…

“The goal of ESG investing was ‘to try and create a positive virus that we could plant in mainstream finance and investment to start a different conversation that these issues are real, they’re material, and they affect your long-term investments,’ said Paul Clements-Hunt, the former head of the U.N. Environment Programme Finance Initiative, or UNEP…

“The study of how short sales affect ESG objectives has gained a lot of attention. According to a recent white paper by the Managed Funds Association and Harvard Management Company, short bets can lower capital investment in the most polluting industries by 3 to 8%. The white paper also states thatshort sellingcan raise the cost…

“In response to the growing criticism of the rating system, EY released anew reporton the state of ESG and recommended five actions to strengthen the credibility of the metric.” [COMMENTARY]It’s good that one of the big accounting firms has issued such a report.Amidst Criticism, ESG Reporting Should Be Reformed, Not Abandoned, by Andrew Kaminsky, July…

“How times change. A year ago, asset managers were trumpeting the qualities of environmental, social and governance (ESG) funds, as a slew of data showed that these had beaten their conventional equivalents over several periods. Today, they have toned down their message after months of disappointing performance; negative stories about firms exaggerating the benefits of…

“The enaction of climate policies over the next decade will lead to lost profits of at least $1.4 trillion in the global oil and gas industry, finds a peer-reviewed analysis published in Nature Climate Change, much of which will impact private investors in Western Europe, while generating financial volatility larger in scale to the 2008…

“Offering a questionnaire focused on ESG, and which doesn’t cover Responsible, Ethical, Impact, Transition, UN’s Sustainable Development Goals (SDGs) etc. is building up future compliance problems… I suggest you provide a document explaining how your firm arrived at its definition of ESG and what it covers. It will then be harder for the client to…

“Vincent Walden, CEO of Kona AI and FRAUD Magazine columnist, says the expanding ESG risk environment, including potential concerns of fraud, is very real. ‘When company executives act in a different way that is counter to the company’s code of conduct or social norms, it can cause significant financial harm to the company and thus…

“The pay gap between Best 50 CEOs and their average worker is less than half that of run-of-the-mill big businesses. And their carbon productivity (which measures how much revenue a company generates per tonne of emissions) is double their peers. This approach has stood the test of time, proving that better corporate citizens can beat…

“New research shows that the significant outperformance of environmental, sustainable and governance – (ESG) – driven investing over the last decade was due to a sharp increase in concern among investors for climate-related issues. Whether that outperformance continues will depend on even more heightened concerns over the environment.” [COMMENTARY]Mr. Swedroe provides insight into the conclusions…

“Whether ESG equity investors are motivated by the desire to do good or the expectation of superior performance, they face the prospect of potential selloffs merely by virtue of their exposure to risk. We therefore propose that ESG equity investors consider adding a dynamic component to their portfolios that cuts risk when market conditions are…

“Institutional owners are restricting lending of companies perceived as unsustainable, according to Travis Whitmore, senior quantitative researcher and head of securities finance research at State Street Associates.” [COMMENTARY]This is another reason why ESG is growing fast. The ESG naysayers on the American right need an education on the profit imperative that ESG offers to companies…