“Advisers could soon have to ask clients about their sustainability preferences in a similar way to attitude to risk, as ESG becomes ingrained in the investment process, according to Quinitin Rayer, head of research and ethical investing at P1 Investment Services.” [COMMENTARY]I’ve been waiting over forty years for investment advisory professionals to realize what has…

“The study set out to examine the client side of ESG investing and establish investors’ attitudes in the UK, the US and Singapore towards ESG investing, their true ESG preferences, the strengths and weaknesses of their existing financial adviser on the subject and what would constitute for them the ideal ESG investment experience. Investors’ ESG…

“BBVA Global Markets Research has estimated that in late 2020 the stock of green, social and sustainable bonds had yet to reach $1tn out of a market total of $128tn. While this green exposure is rising fast from a low base, it is indisputably minuscule.” [COMMENTARY]The writer seems to believe that ESG is partly a…

“Investors’ trust in ESG funds may be misplaced. As scholars in the field ofsupply chain managementandsustainable operations, we see a major flaw in how rating agencies, such as Bloomberg, MSCI and Sustainalytics, are measuring companies’ ESG risk: the performance of their supply chains.” [COMMENTARY]The issue of supply chains is coming to the fore! The reason…

“In an ESG buyback, the company commits part of the buyback profits to finance a socially responsible or green initiative. Early adopters include BIC, Campari and Enel.” [COMMENTARY]I’m not sure how to view this. It is a good way to use ‘excess profits.’ However, when companies can’t see a way to utilize profits to enhance…

“Investors who espouse environmental, social and governance (ESG) principles will achieve little by selling their shares in ESG-unfriendly companies, according to a new research paper titled ‘The Impact of Impact Investing‘ by finance professorsJonathan B. Berkat Stanford University andJules H. van Binsbergenat Wharton. Instead, investors could have more success if they buy those so-called ‘dirty’…

“Efforts to establish a global consensus for climate and sustainability disclosures took a major step as the International Financial Reporting Standards Foundation (IFRS) announced a series of ‘significant developments’ including its new International Sustainability Standards Board (ISSB).” [COMMENTARY]This development is great news and timely. I and many others associated with ethical and sustainable investing have…

“Industry Dialogues on Financing Canada’s Transition to Net-Zero… Join 10+ key sessions on Transition Finance in live webcast format. Learn from thought leaders in ESG and sustainable finance. Interact with panelists through live-polling and in-session chat features. Network with fellow attendees and speakers via peer-to-peer chat options. Earn CE credits and PDUs from several accreditors.”

“Objections to new international outfit aiming to bring clarity to ESG investment hinge on its broad approach.” [COMMENTARY]Such standards should have existed for many years already. As usual, regulators are behind the curve and by the time they get basic standards together, markets will be ahead on phases 2 and 3 of standards.US holds back…

“Adding an ethical tilt to a portfolio may not necessarily lead to better returns.” [COMMENTARY]This article provides a good discussion of implementing ESG into factor-based investing.ESG metrics trip up factor investors, by Emma Boyde, October 31, 2021, Financial Times, UK.

“This study examines the time-varying volatility and risk measures of ethical and unethical investments. We compute the value-at-risk and expected shortfall using the MS-GARCH model based on the Bayesian estimation framework. Ethical investments are less affected than unethical investments during global financial crises. Investors consider ethical investments as a hedging asset for their portfolios in…

“The study run by automotive technology management consultants, Expleo, is based on the views of 225 senior executives from the automotive industry, split equally between the UK, France and Germany. It 71% of respondents believe hydrogen has significant ecological advantages of battery powertrains but there remains uncertainty around infrastructure and green hydrogen which is holding…

“A new analysis finds that selling off stocks in corporations that don’t meet your values has minimal impact on their behavior.” [COMMENTARY]This research agrees with the activist funds that say you need to invest in ‘dirty’ companies to change them. When enough investors seeking corporate change invest in companies performing poorly in ESG metrics, they…

“Private equity funds are very keen to grab the available stocks, bonds, and assets, as the margins in oil and gas, and even coal, are very impressive and will remain so for longer. National oil companies and non-Western oil and gas giants will be happy to produce every last drop of oil, gas, and even…

“IBD’s third annual Best ESG Companies special report, featuring our table of top ESG companies with both high Dow Jones ESG scores and superior IBDComposite Ratings, can help investors pick the best ESG investments.” [COMMENTARY]Worth reviewing, particularly by ethical and sustainable investors.100 Best ESG Stocks Combine Performance And Value With Values, by Alexis Garcia, October…

“Sustainable investing may be gratifying for wealthy individuals and families, but it is far from simple. A lack of standards in the measurement and reporting of ESG (environmental, social and governance) products and funds can leave investors confused. And when it comes to impact investments, capturing the right data takes time, effort and, often, a…

“Over the past several years, pension funds in Scandinavia have announced divestment from oil and gas companies, and the NEST retirement savings fund in the UK, that is, the government-managed IRA-like fund into which workers are defaulted if their employers don’t otherwise provide benefits, has said it will likewise pull its assets from coal mining,…

“More than 30 taxonomies outlining what is and isn’t a green investment are being compiled by governments across Asia, Europe and Latin America, each one reflecting national economic idiosyncrasies that can jar with a global capital market which has seen trillions pour into sustainable funds.” [COMMENTARY]Let’s hope there’s a lot of commonality between them or…

“Many assets will be uneconomic in a low carbon world, but sectors as diverse as commercial property and tobacco may be seriously unprepared for the financial impact.” [COMMENTARY]Stranded assets aren’t just fossil fuels as this article makes clear.Are Stranded Assets an Unexploded Bomb? By Cherry Reynard, October 19, 2021, Morningstar, UK.

“The European Securities and Markets Authority (ESMA) says it’s hard to verify the positive impact of derivatives sold under environmental, social and governance labels. The watchdog says standardized criteria should be met before firms can add ESG tags to products such as forwards, options and swaps… ESMA told Bloomberg News in a written response. ‘The…