"A new paper from Trucost, part of S&P Dow Jones Indices, suggests major companies across the electric utility, chemicals and automaker industries could suffer ’significant losses’ from new carbon pricing policies or carbon taxes introduced as part of nations’ climate efforts." [COMMENTARY] It seems that some defensive stock plays might not be so reliably defensive…

"Companies from 22 different countries made the 2018 list, with the U.S., France and U.K. leading the pack. European companies dominated the rankings, accounting for 69 per cent of listed companies, while North America and Asia accounted for 22 and 12 per cent respectively." [COMMENTARY] This is a ranking I always look forward to. And…

"During a year when a number of high profile environmental, social and governance (ESG) related events unfolded, sustainable fund assets under management in the US, including mutual funds, exchange-traded funds (ETFs) and exchange-traded notes (ETNs) achieved limited gains. Estimated net inflows, including new 2017 fund launches, were $2.9 billion or 1.5%." [COMMENTARY] It’s an old…

"China Alliance of Social Value Investment says its Social Value 99 index outperformed traditional benchmark stock indices in a simulation." [COMMENTARY] It demonstrates that ESG investing is gaining ground in China. Actual index information can be foundhere. Hopefully, an English version of the page will be up at some point.Chinese index ranking companies by social…

"The latest Spectrem Group report, ’Millennial and Generation X Investors,’ suggests these two generations are significantly more attuned to socially responsible investing than their older counterparts. In fact, survey results show more than half of Millennial investors (52%) see the social responsibility of their investments as an important selection criteria, compared with less than 30%…

"While the top-line percentage was unchanged, plans with more than $20 billion in assets increased incorporation of ESG factors by 136% from 2013 to 2017, according to the findings. The authors note that these plans now have the highest rate of incorporation at 78%, compared to only 30% for the smallest funds. ESG adoption across…

"The report looks at 10 key trends and dozens of metrics assessing how, and how much, companies are moving the needle on the world′s most pressing environmental challenges. The report is produced in partnership with Trucost, part of S&P Global, a world leader in helping companies, investors, governments, academics and thought leaders to understand the…

"In this paper we explore the role of screening, the activities typically targeted, the different ways that exclusions are defined, and their effects on investment strategies. Our aim is to help both those investors with exclusion policies already in place and those considering them to understand the options available and the full implications of their…

"For calendar 2016 the managers that scored the highest under MSCI’s responsible investment assessment recorded an average compound annual growth rate of 3.7% in institutional assets under management, vs. a 1.8% decline for those with the lowest scores. Over the two years, the CAGR is 2.6% for the leaders vs. 1.6% for the lowest scorers;…

"Impact Shares, is launching the first ETF focused on women empowerment that will screen for sexual harassment. The fund will contain around 200 to 300 stocks and will track the Equileap North American Women’s Empowerment Index. The index applies 19 screening criteria, which cover gender balance in leadership and workforce, equal pay, flexible work options,…

“’It will get to a point where, if a fund group doesn′t have fully-implemented ESG integration, and had it in place for sometime, we won′t be able to use them anymore,’ she [Teresa Platan, who specialises in selecting emerging markets and Japan equity funds for Aktia, a Finnish bank] says. ’The shift has been so…

"Profits, not ethics, are behind big-name investors′ interest in ESG issues." [COMMENTARY] Now we know ESG has ’arrived’ and why it’s fast becoming integral to financial analysis. Investors everywhere are realizing it pays to incorporate ESG criteria in selecting investments no matter their moral compass. However, I’d still prefer that the new ESG oriented investors…

"The debate started when the American Council for Capital Formation published a sharply written report alleging that, as the group puts it, ’CalPERS has prioritized relatively poor performing environmental, social and governance [ESG] investments at the expense of other investments more likely to optimize returns.’" [COMMENTARY] This is an interesting debate–but I believe CalPERS is…

"A transparent, public and standardised ranking of the world’s largest companies and their carbon emissions." [COMMENTARY] Engaged Tracking created its carbon tracking methodology with the help of the prestigious UK university, Imperial College. So, it has a great pedigree. Registration–which is free–is advised.2017 Engaged Tracking Carbon Rankings, December 2017, Engaged Tracking, UK.

"Today, as many as 225 influential global investors with more than $26.3 trillion in assets under management pledged to engage with 100 corporates estimated to be responsible for around 85 percent of total global greenhouse gas emissions, so as to step up their ambition on climate action." [COMMENTARY] This could greatly influence the direction of…

"Today, JUST Capital, in partnership with Forbes, has released the 2017 list of America′s Most JUST Companies, our annual ranking of the largest publicly-traded U.S. corporations." [COMMENTARY] With Forbes behind it, JUST Capital is getting much attention–and justifiably so. The 2017 ’just’ American companies’ list is undoubtedly a key ranking for ESG-ethical investors to review.…

"Morningstar finds biggest index managers have expanded their stewardship or corporate-governance teams." [COMMENTARY] Morningstar’s research findings are consistent with other similar research.Index Managers Taking Note as ESG Surges: Morningstar, by Michael S. Fischer, December 8, 2017, ThinkAdvisor, USA.

"More than one-third, 35%, of asset managers have made the introduction of environmental, social and governance (ESG) investing a high priority, and another 57% say they are placing a moderate level of priority on the task. Together, this makes for a full 92% of asset managers on the path to or considering offering ESG investing…

"According to my estimates for every dollar actively managed, either through high turnover diversified portfolios or through low turnover concentrated portfolios, there are three dollars in indexing or quasi-indexing. In such a market there will be tremendous rewards for market participants that can provide a differentiated service." [COMMENTARY] This is a great piece by Harvard’s…

"A report by environmental law firm ClientEarth states that trustees are legally required to respond to climate change risk that may have a material impact on the scheme." [COMMENTARY] This will come as a shocker to the many pension fund trustees who’ve argued against the inclusion of ESG criteria in pension fund management. It appears…