August 2025 Newsletter
News & Commentaries by Ron Robins
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New August Podcast:
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Why Europe must not allow defence investments to be labelled sustainable. “In our view, the financing of weapons and arms is at odds with any definition of sustainable finance. The current policy debate in Europe risks normalising “warwashing”, the rebranding of weapons finance as socially responsible investing.”
[COMMENTARY] What is your view on defence investments being labelled as sustainable investments?
Why Europe must not allow defence investments to be labelled sustainable, by Martin Rohner, August 27, 2025, Reuters, Europe.
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Finance on trial: how climate litigation against banks could drive systemic change. “Climate litigation is a growing material risk for companies and financial institutions, as an increasing number of cases are brought which challenge their role in the climate crisis or lack of action in addressing it.”
[COMMENTARY] Climate litigation against many companies will likely continue to grow. How significant a force it will become in addressing climate change and mitigation efforts remains to be seen. However, should litigation efforts against companies begin to succeed — watch the fireworks!
Finance on trial: how climate litigation against banks could drive systemic change, by Rick Bosman and Jasper Blom, August 26, 2025, Green Central Banking, Global.
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The Great ESG Investing Backlash. “While retail investors got spooked by the political noise, pension funds, sovereign wealth funds and family offices quietly continued integrating ESG factors. They just stopped talking about it at cocktail parties.”
[COMMENTARY] The underpinnings of ESG are there for all time. It’s just that the term ESG might change or not be mentioned in certain environments.
The Great ESG Investing Backlash, by Phil Kirshman, August 20, 2025, Wealth Management, USA.
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Sustainable investing: how natural capital could outperform traditional assets. “Alejandro Litovsky, the founder and CEO of Earth Security, believes that respecting nature can help companies to think and invest more effectively.”
[COMMENTARY] This is a fascinating article on how natural capital could become an investing opportunity.
Sustainable investing: how natural capital could outperform traditional assets, by Ed Stocker, August 18, 2025, Monocle, UK and Switzerland.
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Corporate Support for DEI Continues Among Investors and Companies. “Interestingly, these anti-DEI resolutions conveyed the exact opposite message, demonstrating that investors and companies alike believe that diversity has a positive impact on employees and long-term shareholder value.”
[COMMENTARY] For companies that employ or serve the mass consumer/public, not having a management or workforce that’s diverse will likely be a detriment to the company’s overall success. Hence, DEI-type policies are appropriate for most listed public companies. That’s why proxies advocating eliminating DEI polices are failing.
Corporate Support for DEI Continues Among Investors and Companies, by Timothy Smith, August 17, 2025, Harvard Law School Forum on Corporate Governance, USA.
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Fund managers turn a blind eye to Gaza at their peril. “Scandal at Norway’s $1.9tn oil fund highlights risks for asset managers.”
[COMMENTARY] In some ways, this divestment from Israel debate brings to mind the divestment from sin stocks that occurred decades ago. Though ethical investors shunned sin stocks, they frequently gave above-average returns. And some still do today, particularly the dividend payors. As per my previous commentary on defence stock investment, it boils down to personal ethics.
Fund managers turn a blind eye to Gaza at their peril, by Simon Mundy, August 15, 2025, Financial Times, UK.
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Russia’s invasion of Ukraine has put weapons makers back in responsible investment funds. “Europe’s push to rebuild its defence sector is prompting some values-based investors to rethink military exclusions.”
[COMMENTARY] This is my sixth decade engaged with the investment industry. Throughout that entire time, the issue of whether investing in defence stocks is ethical always boils down to personal values. This article by my old friend Eugene Ellmen is a terrific overview of current viewpoints on this subject.
Russia’s invasion of Ukraine has put weapons makers back in responsible investment funds, by Eugene Ellmen, August 13, 2025, Corporate Knights, Canada.
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How an ESG-focused asset manager makes assessments. “Companies in the U.S. need to understand that supporting or exacerbating inequalities or raising social risks have real implications across the system. In some ways, companies must become more flexible and nimble to deal with the challenges the world is facing right now.”
[COMMENTARY] This is an insightful interview on how a top ESG-oriented fund manager manages money.
How an ESG-focused asset manager makes assessments, by
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AI and Ethics: A Double-Edged Sword for Wealth Management. “As AI becomes embedded in wealth management, ethical concerns around bias, transparency, and data privacy are surfacing that advisors and clients cannot afford to ignore.”
[COMMENTARY] Most of us using AI are keenly aware of the potential ethical issues of its use in wealth management. Companies engaged in wealth management need to develop clear ethical guidelines for all employees, management, and clients regarding the use of AI.
AI and Ethics: A Double-Edged Sword for Wealth Management, by Ryan Munson, July 31, 2024, Wealth Management, USA.
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Green Bonds Crucial for Climate Finance but Face Multiple Challenges: IEEFA. “According to IEEFA, green bonds represented only 3% of the global bond market in 2024, with annual issuance crossing USD 577 billion. Yet, regulatory hurdles restrain their growth.”
[COMMENTARY] It seems the forces arrayed to restrict green bond issuance are still present in many parts of the world.
Green Bonds Crucial for Climate Finance but Face Multiple Challenges: IEEFA, by Manish Kumar, July 30, 2025, Saur Energy International, India.
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75% of 401(k) Participants Want Sustainable Investing, But Most Don’t Know It’s an Option: Morgan Stanley. “1) 75% of 401(k) participants express interest in sustainable investing, but only 36% are aware of relevant plan options. 2) Conflicting corporate perceptions and regulatory ambiguity are limiting adoption despite renewed fund performance. 3) The Department of Labor’s evolving fiduciary guidelines may increase litigation risk, affecting ESG integration in retirement plans.”
[COMMENTARY] Investors everywhere are faced with the situation where they might be able to invest sustainably, but their investment advisors fail to offer them such options. After over fifty years of observing this, I would’ve thought that this situation would have resolved itself by now!
75% of 401(k) Participants Want Sustainable Investing, But Most Don’t Know It’s an Option: Morgan Stanley, by ESG News, July 29, 2025, 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.
Higher Ground: How Business Can Do the Right Thing in a Turbulent World. “Finally, a book about business and ethics that’s fit for the twenty-first century. Every executive should pay attention to this book.” — R. Edward Freeman, UDA Darden School of Business.
For more information, visit Higher Ground: How Business Can Do the Right Thing in a Turbulent World, by Alison Taylor, ©2023 Harvard Business School Publishing Corporation (P)2024 Ascent Audio.
