“Total anti-DEI proposals submitted for the 2025 proxy season have surpassed pro-DEI proposals.” [COMMENTARY] Though anti-DEI proposals have increased substantially, many large companies continue supporting DEI. They include Coco-Cola, Johnson & Johnson, Delta Airlines and many, many more. How DEI Shareholder Proposals Are Faring in 2025, by David A. Bell and Wendy Grasso, March 22, 2025,…

“The research, published in Journal of Applied Accounting Research, examined the financial risks associated with climate change regulations, such as the European Green Deal and the EU Emissions Trading System. It found that as companies face increased costs in transitioning to low-carbon operations, they may engage in earnings manipulation to present a stronger financial position.” [COMMENTARY] This finding…

“Priorities for 2025 include executive pay, shareholder rights, climate transition and human capital management.” [COMMENTARY] The findings in this report will interest many investors. Global Institutional Investor Survey 2024 Report, by Kilian Moote and Kiran Vasantham, March 17, 2025, Harvard Law School Forum on Corporate Governance, USA.  

“Natural capital—which includes farmlands, timberlands, and other environmental investments—has the ability to not only produce strong, risk-reward profiles for a portfolio, but also the ability to do good. And with many natural capital investments finally getting the attention of Wall Street, their values are on the rise.” [COMMENTARY] Natural capital investments for ethical and sustainable…

“Many financial institutions will this year make their first transition plan disclosures in line with the European Union’s Corporate Sustainability Reporting Directive (CSRD). Despite recent efforts to limit the applicability of CSRD so as to streamline reporting requirements, many companies will start to file sustainability reports in line with the European Sustainability Reporting Standards covering their…

“Our main findings reveal that the efficient market hypothesis does not hold, ESG ratings are the main drivers of abnormal returns.” By Mai T. Said and Mona A. Elbannan, March 2025, Journal of Asset Management DOI:10.1057/s41260-025-00394-3.

“A divest-and-exclude approach toward carbon-intensive companies and industries may be overly focused on mitigating perceived risk in the shorter term and could remove return opportunities in actively managed investment strategies over the longer term.” [COMMENTARY]  Some studies show that returns can be enhanced by investing in and engaging with companies at the beginning of their…

“Its 2025 ESG and Sustainable Barometer report analyses over 9,500 investment strategies managed by more than 460 asset managers. It evaluates key ESG and Sustainability related trends in the European and UK fund markets.” [COMMENTARY] I am unsurprised by the results of this study on green European and UK funds. It would be good if some…

“The survey found that two thirds of executives reported that sustainability is “very important” to their companies’ commercial success, up slightly from last year, with executives highlighting a wide range of value creation drivers. The top benefits reported included enhanced brand and reputation, cited by 74% of respondents, followed by stronger stakeholder and community relations…

“On February 11, 2025, the staff of the SEC’s Division of Corporation Finance issued updated and new guidance regarding the eligibility of shareholders to file Schedule 13G instead of Schedule 13D beneficial ownership reports. The guidance notes that a shareholder’s ability to report on Schedule 13G depends on whether it holds the securities with a purpose…

“Retail investors rely heavily on green labels, but checking environmental claims is out of reach for most.” [COMMENTARY] If you are a retail bond investor, do you agree that a green label on the bond influences your decision on whether to invest in that bond? The ‘green label effect‘ for green bonds is real, by…

“The Clean200 are the largest 200 public companies ranked by clean revenue. The ranking was first calculated on July 1, 2016, and publicly released on August 15, 2016, by Corporate Knights and As You Sow. The current list has been updated with data through January 29, 2025.” [COMMENTARY] This is my all-time favourite company ranking…

“In addition, 92% of 500 CFOs surveyed said they expect their organizations will significantly increase net investment in sustainability in 2025.” [COMMENTARY] ESG is alive and well. It just goes by a different moniker: sustainability! 70% of CFOs believe sustainability investments will return more than traditional outlays, by Steve Kerch, February 18, 2025, Equitties.com, USA.

“It’s clear from some SEC commissioners’ recent remarks that they aim to leave behind the era of the shareholder meeting as a battleground for social and political issues.” [COMMENTARY] The new SEC investor guidance favours management at the expense of shareholders. Already financial giants like Vanguard and BlackRock are cancelling many interactions with companies. Changes in…

“Vitalis, in collaboration with Dr. Olaf Weber and Dr. Vasundhara Saravade from the Faculty of Environment, discovered that investors are more likely to choose a bond labeled as ‘green’ over a non-green bond, even when the latter offers higher financial returns.” [COMMENTARY] This is why — especially for green bonds — taxonomies and regulations are…

“JPMorgan and Goldman Sachs – along with retailer Costco – have set the stage for corporations to push back on the anti-DEI agenda. Will others join the resistance?” [COMMENTARY]  It makes sense for large companies, particularly, to have a hiring policy that reflects their clientele. Hence, DEI is relevant to their operations. To do otherwise…

“Many asset managers have stopped offering funds supporting environmental, social, and governance (ESG) goals in the face of political backlash. In new research, Omar Vasquez Duque shows that much of this backlash is due to semantics and poor fund design, and that investors across the political spectrum are willing to take lower financial returns to support…

“In conclusion, the study shows that the anti-ESG proponents are increasing their voice through a higher volume of shareholder proposals in an attempt to reach wider audiences, albeit with limited support. Though the future remains uncertain, the data does suggest that the anti-ESG movement will continue on and maintain a strong presence in shareholder meetings while…

“We document four facts. First, investors generally expected ESG investments to underperform the market. Between mid-2021 and late-2023, the average expected 10-year annualized return of ESG investments relative to the overall stock market was −2.1%” [COMMENTARY] I believe the reason many investors expect ESG-based investments to underperform is cultural, in that a certain amount of ‘crookedness’…

“Does ownership matter?  With average holding periods of publicly-traded stock measured in months, share ownership may not effect firm’s long-term practices and activities.  Yet, large shareholders surely have a stronger voice than others and their holding periods are considerably longer. Hence, their preferences might influence the choices made by firms, especially regarding corporate practices around…