September 2024 Newsletter
News & Commentaries by Ron Robins
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New September Podcasts:
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The corporate green bond renaissance. “Green bonds, social bonds, sustainability bonds and sustainability-linked bonds have grown a combined 43% CAGR between 2014 and 2023 to represent approximately 14% of the global fixed income market.”
[COMMENTARY] The growing investor appetite for green bonds is behind their rise. This is despite growing concerns about green investing in some quarters of the investment industry.
The corporate green bond renaissance, by Michael Lewis and Jay Joshi, September 2024, DWS, Germany.
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The Backlash Didn’t Kill Green Investing. In Fact, It’s Booming. “Far from being dead, responsible investing is not even dented, despite the noise. Morgan Stanley data shows that, in 2023, sustainable funds continued to outperform their peers. The market grew 15% last year, reaching a high of $3.4 trillion. Over 50% of investors plan to boost sustainable investments in 2024, and when asked if they are interested in this as an investment strategy, 77% give a resounding yes.”
[COMMENTARY] It’s simple why sustainable investing continues to gain momentum. It makes sense from most perspectives!
The Backlash Didn’t Kill Green Investing. In Fact, It’s Booming, by Paul Polman, BARRON’S, September 24, 2024, USA.
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Stand by ESG? The State of 2024 U.S. Sustainability Reports. “These two mega trends – increasing requirements from regulators for more ESG disclosure and increasing pressure to abandon ESG altogether – have forced many companies to rethink their existing ESG strategies.”
[COMMENTARY] This report cuts through all the noise regarding the true state of corporate ESG and sustainability reporting today.
Stand by ESG? The State of 2024 U.S. Sustainability Reports, by Martha Carter, Matt Filosa, and Diana Lee, September 20, 2024, Harvard Law School Forum on Corporate Governance, USA.
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What Are ESG Bonds? “ESG bonds are fixed-income securities issued to raise capital for projects that align with the principles of environmental, social, and governance (ESG) criteria. These bonds allow issuers to finance initiatives that have positive impacts in areas such as renewable energy, social equality, and corporate governance. For investors, ESG bonds offer a way to contribute to responsible investment strategies while generating returns from their investments.”
[COMMENTARY] Nasdaq has created the “Sustainable Bond Network to Analyze and Report on ESG Bonds.”
What Are ESG Bonds? By MarketInsite, Nasdaq Blog, September 2024, Nasdaq, USA.
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The 10th edition of the global Prize Ethics & Trust in Finance is on. “The mission of the Prize is to promote greater awareness among young people (professionals as well as academics) throughout the world of the importance of strengthening ethics and integrity in the finance sector.”
[COMMENTARY] I’ve been an enthusiastic supporter of this prize since its first year. I highly encourage all those young people studying finance and interested in ethics in the industry to engage with this prize.
The 10th edition of the global Prize Ethics & Trust in Finance is on, press release, September 2024, Ethics & Trust in Finance, Switzerland.
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Green bonds are bunkum. “To what extent is the greenness merely a gimmick to adorn standard corporate borrowing? How much of it is legit? Hardly any of it, according to a new NBER paper by Pauline Lam and Jeffrey Wurgler of NYU’s Stern School of Business.”
[COMMENTARY] The data is concerning. It suggests that many bond issuers can ‘greenwash’ their bond offerings. Just as there are ‘light’ or ‘deep’ green funds, there needs to be industry-wide agreement on similar categories for bonds globally.
Green bonds are bunkum, by Robin Wigglesworth, September 16, 2024, Financial Times, UK.
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EU investors double down on transition-focused funds amid ESG scrutiny. “Investment flows into funds that focus on transitioning companies from ‘brown’ to ‘green’ technologies have nearly doubled those into purely environmental funds in the EU over the past two years, the European Securities and Markets Authority (ESMA) has reported.”
[COMMENTARY] Investors now understand that some research shows more upside stock potential for companies transitioning from ‘poor’ to ‘greater’ ESG performance than companies already excelling in ESG performance.
EU investors double down on transition-focused funds amid ESG scrutiny, by FinTech Global, September 6, 2024, UK.
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85% of banks rely on ESG ratings for financial strategy, reveals CDP report. “A recent report from CDP has illuminated the growing centrality of ESG ratings in the strategic frameworks of financial institutions (FIs).”
[COMMENTARY] Despite the anti-ESG sentiment among many in politics and business today, financial institutions still see the value in ESG ratings. After all, how can it not be of value to investors to know about a company’s environmental, social, and governance policies and activities? To do otherwise would be a dereliction of duty.
85% of banks rely on ESG ratings for financial strategy, reveals CDP report, by Fin Tech Global, September 3, 2024, UK.
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Defense stocks in an ESG portfolio? A profound — and controversial — shift seems to be underway. “Russia’s ongoing war in Ukraine has resulted in a profound shift in the way defense stocks are viewed by mission-driven fund managers, according to two European defense giants.”
[COMMENTARY] Ethical and sustainable investing is all about personal values, which differ between individuals and sometimes change over time That’s how it should be.
Defense stocks in an ESG portfolio? A profound — and controversial — shift seems to be underway, by Sam Meredith, September 2, 2024, CNBC, 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.
Ethical Investment in Islam: Principles and Practices. “The book delves into various Shariah-compliant investment options like stocks, real estate, and sukuk (Islamic bonds) while offering practical guidance on building an Islamic investment portfolio.”
For more information visit Ethical Investment in Islam: Principles and Practices, by Dr Raed El Omari, Amazon Kindle. September 10, 2024.
