June 2024 Newsletter
News & Commentaries by Ron Robins
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New Podcasts:
- Best Vegan and Climate Tech Stocks
- Renewable Energy and Sustainable Bank Stock Buys
- Sustainable and Infrastructure Stocks Analysts Adore
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Why the S&P 500 ESG Index Continues to Outperform the S&P 500. “Looking through an ESG lens may help tease out risks that might not necessarily be apparent in conventional financial analysis. By excluding the lower scoring ESG companies relative to their peers, some risk is managed out of the index.”
[COMMENTARY] I believe the anti-ESG movement is simply politics — largely fueled by fossil fuel interests. Looked at objectively, ESG is about enhancing corporate operational and financial performance. Thus, this continuing outperformance of the S&P 500 ESG Index over the S&P 500.
Why the S&P 500 ESG Index Continues to Outperform the S&P 500, by Payal Shah, June 26, 2024, CME Group, USA.
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These 50 Canadian corporations are betting big on green. “Best 50 companies are pouring seven times more into sustainable investments than the average Canadian corporation.”
[COMMENTARY] Ethical investors everywhere should review this list as even non-Canadian investors might find companies they consider worthwhile investments.
These 50 Canadian corporations are betting big on green, editorial by Rick Spence, Summer 2024, Corporate Knights, Canada.
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ESG Funds Are Not More Expensive, Morningstar Sustainalytics Analysis Confirms. “This latest research busts the myth that ESG investments are more expensive for investors, as commonly assumed due to specialised ESG data, research, and expertise.”
[COMMENTARY] The research applies to European investments. We don’t know if it’s true for other jurisdictions.
ESG Funds Are Not More Expensive, Morningstar Sustainalytics Analysis Confirms, by Meg Bratley, June 24, 2024, Morningstar Sustainalytics, IFA Magazine, UK.
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The Story of the First ESG Index. “How the Domini 400 withstood the test of time.”
[COMMENTARY] After 34 years of history it still regularly outpaces many mainstream indices! This is a great story that ethical and sustainable investors should know about.
The Story of the First ESG Index, by
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Portfolios With Low ESG Risk Outperform in Times of Crisis. “Market patterns during past shocks suggest minimizing ESG risk is good business.”
[COMMENTARY] There have been several studies showing this — that such portfolios improved comparative returns.
Portfolios With Low ESG Risk Outperform in Times of Crisis, by Valerio Baselli, June 19, 2024, Morningstar UK, UK.
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Why every investor should embrace Responsible AI. “The Responsible AI Playbook for Investors, a collaboration between the World Economic Forum and CPP Investments Insights Institute, aims to bridge this gap. It argues investors can and should exercise the influence of their capital to promote Responsible AI in their portfolios of direct investments, in their work with investment partners and in the ecosystem at large. And it offers practical tools and approaches to help them do it.”
[COMMENTARY] This guide will probably appeal to many investors. Debate about how investors can benefit from AI is everywhere. However, very few good guides on this subject exist. This could be one of the best though.
Why every investor should embrace Responsible AI, by the World Economic Forum and CPP Investments Insights Institue, June 21, 2024.
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How Generative AI transforms ESG data into sustainable investment success.“By transforming how data is managed, analyzed, and utilized, Generative AI offers substantial promise for those committed to enhancing their investment practices with sustainability at the core.”
[COMMENTARY] Anyone engaged in investment or portfolio analysis and research will need to become proficient in using Generative AI. This is a good introductory article — with a link to a paper for a more detailed discussion — on the subject.
How Generative AI transforms ESG data into sustainable investment success, by FinTech Global, June 13, 2024, UK.
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Ethical Investments. “Contrary to what appears to be a widespread assumption, I demonstrate that fiduciary law does not inherently prohibit ethical investments.”
[COMMENTARY] This Harvard paper elaborates the view that ESG can legally be shown to be central to investment selection in ERISA and other regulated funds. Fund managers and investors everywhere to review it.
Ethical Investments, by Yifat Naftali Ben Zion (Harvard Law School), May 29, 2024, Harvard Law School Forum on Corporate Governance, USA.
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Clean Tech Co. Says It Has Built a New ‘Reliable, Safe’ Battery. “Clean technology company BioLargo Inc. (BLGO:OTCQB) announced it has manufactured its “liquid sodium” prototype battery cells that it says are long-lasting and safer than lithium-ion batteries. One technical analyst said the stock is a great spot to buy.”
[COMMENTARY] Some investors are betting that other types of batteries will soon surpass lithium-ion batteries. This could be an example of what’s on the horizon.
Clean Tech Co. Says It Has Built a New ‘Reliable, Safe’ Battery, by Streetwise Reports, June 12, 2024, Streetwise Reports, USA.
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Featured Book
Note: Ron Robins is an Amazon Associate. He thus earns fees from qualifying book or merchandise purchases referred from this website.
Sustainable Investing: An ESG Starter Kit for Everyday Investors. “This book helps each of us to look into the mirror and see an empowered person staring back―ready to use the influence of our wealth to co-create a livable world based on justice and sustainability. — Andrew Behar, CEO of As You Sow
For more information, visit Sustainable Investing: An ESG Starter Kit for Everyday Investors, by
