“Corporate Knights’ 2022 ranking of the world’s 100 most sustainable corporations is based on a rigorous assessment of nearly 7,000 public companies with revenue over US$1 billion.” [COMMENTARY]One of the best, if not the best, independent assessments of the most sustainable companies whose stocks you can buy.The 100 most sustainable corporations of 2022, by Corporate…

“The European Central Bank has suggested that the proposed EU Green Bond Standard (EU GBS) become mandatory for all green bonds. Karim Henide disagrees. He writes that the EU GBS is so narrow that only a fraction of the current green bond market is eligible under this standard. Issuers on the margins may not have…

“‘The people running public pension plans these days like to boast about their ‘ethical’ investment policies, for example when it comes to the environment or‘diversity, equity and inclusion.‘ Meanwhile they pourbillions of dollars into secretive private-equity funds in pursuit of extra profits. Now comes yet more evidence that some of those private-equity managers in turn…

“Without state intervention and global standards, the environmental, social, and governance movement is a recipe for greenwashing and corporate deception.” [COMMENTARY] Yes, I favor increased government regulation concerning corporate ESG reporting standards, how they’re measured, and who gets to audit them. We’re certainly not there yet. Can Global Regulators Save the ESG Movement From Itself?…

“The above findings should not lead to questioning whether ESG strategies can offer substantial value to investors. Instead, they suggest that investors who look for value-added through outperformance are looking in the wrong place — ESG strategies should be considered for the unique benefits they can provide, such as hedging climate or litigation risk, aligning…

“While this list is a great starting point for any potential ESG investors, it’s essential to supplement it with your own research as well.” [COMMENTARY]I’m biased towards Sustainalystics since I’ve been aware of their sincerity and quality of ESG research since their beginning days over two decades ago!4 Best ESG Stock Screeners, by The Impact…

“As of December 29, US giants Exxon and Chevron had added 48 per cent and 40 per cent respectively in 2021. The duo have helped power global energy equity funds past many of the hundreds of US and European sustainable funds as defined by Morningstar, a data provider.” [COMMENTARY]In my view, there are two reasons…

“Scores of new funds are claiming to practice environmental, social and governance investing, but their managers are failing to put in the work of determining whether companies they own adhere to those standards. And that’s leading to style over substance, two long-time ESG portfolio managers said in an interview.” [COMMENTARY]There are some useful insights in…

“The Standards are intended to address current issues with ESG investing, such as inaccurate disclosure practices, and aim to support investors with complete, reliable, consistent, clear and accessible information. The Standards have been designed to accommodate the full range of investment vehicles, asset classes and ESG approaches offered in markets around the world.” [COMMENTARY]Frankly, the…

“While 77% of respondents said they want their financial services provider to inform them about responsible investments that are aligned with their values, only 27% said they had ever been asked if they were interested. About one-third of respondents said they currently own responsible investments, similar to last year.” [COMMENTARY]This is a problem I’ve been…

“Environmental, social, and governance data is noisy — and may not help firms protect the planet. Here’s what to keep in mind as you measure and invest.” [COMMENTARY]Beth Stackpole provides good insight into the state of ESG corporate reporting and how ESG rating agencies rate companies on ESG measures. Also, the writer asks tough questions…

“Across muni-bond sectors, there are more than 200 data-driven metrics and 5 million annual data points to measure performance. VanEck and HIP Investor have partnered to track the overall impact and sustainability of 122,000 entities that could benefit from muni bonds.” [COMMENTARY]This article presents a good analysis of how US muni bonds can be ESG…

by HSBC Asset Management. November 2021 [COMMENTARY]Though for institutions, this guide is also incredibly useful and informative reading for all ethical and sustainable investors.

“Leading investment experts are calling for the country’s [UK] financial regulator to act swiftly to stop the mis-labelling of green investment funds by some of the world’s biggest asset managers.” [COMMENTARY]This is probably the same situation in most western countries. With the enormous growth in green funds, it’s, frankly, expected that many funds would jump…

“Saudi Arabia, the world’s biggest oil producer, has announcedplans to boostoil production further, from the current 12 million barrels a day to 13 million barrels a day by 2027. The UAE has an even more aggressive growth plan, with state-controlled oil company ADNOCsaying it will increaseoil output by 25% to produce 5 billion barrels a…

“92% of investors are concerned that companies aren’t effectively executing on their net zero promises.” [COMMENTARY]It’s easy for companies to make promises that are many, many, years into the future! Particularly when it promotes your stock price. However, presenting detailed plans for achieving those promises is still rare. And that’s what creates investor skepticism of…

“Analyses of companies globally by management consultancy Kearney in November seen exclusively by Reuters, as well as data by Credit Suisse Group AG published in April, found that companies that lowered their emissions in sectors where doing so was expensive and government regulation was limited were valued less, on average, than more emitting peers.” [COMMENTARY]There’s…

“Our framework highlights how Social and Governance performance have a close correlation with the outcome of the COVID-19 pandemic in the various economies of our selected universe. Additionally, this study should serve as a driving force for continuous investment in a sustainable and responsible array of public policies. Economies that suffered the most from the…

“This special report examines how ESG factors are changing the landscape in fixed income investing, and how institutional investors and security issuers are navigating the new terrain.” [COMMENTARY]A great article on this timely subject.Green Bond Impact Ratings: Turning Brown into Green, from the Nov 2021 PGIM Fixed Income ESG Special Report, November 23, 2021, Institutional…

“So what does the formation of the ISSB mean for the evolution and efficacy of ESG reporting? To answer that, I checked in with those who I thought would know better than most: Jean Rogers, founder of the Sustainability Accounting Standards Board (SASB) and, as of this month, global head of ESG at Blackstone; and…