“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…

“Global law firm White & Case believes that ensuring that borrowers have taken appropriate ESG and sustainability considerations into account has become a priority for many mining investors as well as financiers across the spectrum — from export credit agencies, development finance institutions and commercial lenders, through to stream and royalty financiers.” [COMMENTARY]The mining industry…

“By launching the 9th edition (2022/2023) of the Global Prize Ethics & Trust in Finance for a Sustainable Future online, we want to encourage candidates to reflect on the role of ethics in shaping a more sustainable and responsible financial system. Such intellectual effort is made today more necessary and urgent than ever.” [COMMENTARY]I’ve helped…

“Ethically minded investors are growing more skeptical of ESG investing, wondering whether it actually furthers environmental or social justice aims. At the same time, demand for ethical investing is only going to increase as progressive millennials and Gen Zers accrue more financial assets, often by inheriting that money from their conservative parents.” [COMMENTARY]The title of…

“Our analysis of three data points on board oversight of ESG issues, covered under the Shareholders and Governance stakeholder, has led to two key findings. First, disclosure on these data points is steadily increasing. Almost a fifth of companies in the Russell 1000 Index report all three ESG governance data points we measure in 2022-up…

“The U.S. Securities and Exchange Commission has proposed two rules that, if adopted, will help investors better identify, understand, and compare funds that feature environmental, social, and governance criteria in their investment process.” [COMMENTARY]Let me first say that I agree with stricter rules deterring greenwashing! Now should these new SEC rules be adopted I believe…

“Investors are increasingly using ESG ratings for their investment decisions. But we need to assign companies a stand-alone rating focused on climate risk that’s distinct from the ESG rating system. Such a climate-specific rating can distill complex information regarding a company’s carbon footprint and climate risk into an intuitive, user-friendly format, while avoiding the flaws…

“Much more troubling is the growing animosity toward ESG on the political right in the United States. ‘ESG,’ in their telling, is just one more front in the anti-American progressive takeover of the country.” [COMMENTARY]Can there be a precise definition of ESG? What do you think? The highly respected Jon Hale at Morningstar writes in…

?“As I explained in my recent three-part series on ESG ratings, the ratings reflect risks to companies and its shareholders, not necessarily to people and the planet. And while the ratings agencies insist they make that fact crystal clear, and most professional investors agree that they do, there remains a general — and not illogical…

“Potential implications of our results are that the standard setters should work to improve the specificity and rigor of their guidelines, and analysts should become more involved in developing IR guidelines to make them more relevant to their information needs. IR seems to unfold its benefits better in mandatory settings, which could call for regulators…

“Referencing its SustainEx tool, Schroders found a ‘good’ company (one that is highly environmentally friendly) would be worth roughly 50 per cent more than a bad one with the same earnings. Using its SustainEx, which looks at the dollar-value of the impact individual companies have on society before scaling this relative to their sales, Schroders…

“One can make the argument that if climate information and its analysis is useful for management and the board, the additional cost of reporting it externally is a relatively incremental one.” [COMMENTARY]Professor Robert Eccles opf Harvard and Oxford fame presents insightful information on this important subject.The Benefits And Costs Of Climate-Related Disclosure Activities For Companies…

“Fund managers talk toNicholas Prattabout the dangers of ESG metrics that boil complex risks down to a single number.” [COMMENTARY]The lesson here is to understand the numbers before using them. If you don’t understand them, don’t use them.Lies, damn lies and diluted ESG metrics, fund managers, May Edition, Funds Europe, UK.

“However, they frequently sell to buyers that disclose little about their operations, have made few or no pledges to combat climate change, and are committed to ramping up fossil fuel production. A new study, however, warned of expected large environmental pollution with such uncoordinated efforts.” [COMMENTARY]Is it possible for governments to regulate the conditions under…

“Catherine Higham and Honor Kerry analyse climate cases filed in 2021 against companies in different sectors and consider what the future holds. They find that that while fossil fuel companies remain a primary target of activist litigation, climate litigants are now casting their net more broadly.” [COMMENTARY]How far could this go? As case law and…

“What has not been explicitly recognised is the impact of the private sector on human health. The fact that companies’ activities, services and products affect human health is not disputed. These include not only direct effects such as respiratory diseases in coal miners, but also indirect ones such as obesity-driven illnesses caused by excess consumption…

“A University of Guelph study found companies prioritizing sustainability in their business practices are better off in times of crisis and have economic growth.” [COMMENTARY]This study throws a different light on some understandings concerning ESG in difficult economic times. For instance, the researchers found that ‘low’ ESG companies did better than ‘high’ ESG companies in…

“Under the fog of war and anxiety about the midterm elections, the White House is poised to hand over generous amounts of public money to ahighly profitable energy industry— support that could lock in additional emissions for decades to come.” [COMMENTARY]I believe energy prices should be largely left to the free market with support provided…

? “In our view, there’s no substitute for integrating consideration of ESG factors into fundamental security analysis. Rather than outsource ESG assessments to third-party providers, investors and analysts must conduct in-depth, hands-on research and engage actively with issuers. That approach enables investors to achieve real insight into a business and its activities, and to get…

“Activists and others are looking for companies with low marks on environmental, social, and governance check lists.” [COMMENTARY]Some studies suggest greater stock profits can be had with companies who are just getting started with ESG.With Too Much Love From Institutional Investors, Companies With High ESG Ratings May be Overvalued. Activists Are Taking Note, by Jessica…