A new series in the Wall Street Journal by James Mackintosh argues that ESG investing is not effective, calling it a “craze.” We note that investing based on a view about “inevitable” retreat from fossil fuels, based on predictions about consumer and regulatory shifts, is not political, especially as Mackintosh concedes that investors base their…
Yale SOM on Corporations, Advocates and Voting Rights
The Yale School of Management has published a meticulously researched report on 188 different groups advocating for voting rights, with detailed information on their longevity, funding, staff, positions, and initiatives. For us, the most significant part of the report is this: CEO commitment towards protecting the right to vote remains as strong as ever with 80%…
Agenda – New Investor Policies at State Street ‘Highly Likely’ to Increase Negative Director Votes
If Agenda was not so board-centric, its headline might have been the more accurate: Poor Judgement and Lack of Responsiveness to Investor Concerns from Board Members Leading to No Votes for Director Candidates. We note that another article in the same issue highlights the increase in diversity and financial expertise on boards, which it is…
10 ESG Questions Companies Need to Answer
In the Harvard Business Review, a skeptical article by Dambisa Moyo assumes that ESG factors are likely to be inconsistent with the creation of value for shareholders, but acknowledges that the numbers have been otherwise. In conclusion: “Global corporations must approach ESG in a way that is transparent, consistent, flexible, innovative, sustainable, sensitive to cultural…
The Cycle of Distrust: Edelman’s Latest Trust Index Shows Business Trusted More than Government or Media
Edelman’s annual worldwide “trust index” shows business holding steady and more trusted than government or media, but still only at at only 61 percent. In May 2020, government was most trusted at 65 percent, with business at 62 percent. The survey showed government and media seen as more divisive than business (which has more reason…
ExxonMobil Claims the First Amendment Gives it the Right to Lie About Climate Change
The largest US oil firm is asking the Texas Supreme Court to allow it to use the law, known as rule 202, to pursue legal action against more than a dozen California municipal officials. Exxon claims that in filing lawsuits against the company over its role in the climate crisis, the officials are orchestrating a…
Larry Fink’s Annual 2022 Letter to CEOs | BlackRock
Blackrock CEO Larry Fink continues to call on the CEOs of its portfolio companies to engage and inspire stakeholders to create sustainable returns. That includes recognizing the profound and lasting changes in the world of work and what employees need to be productive and loyal. He expects them “to play a role in decarbonizing the…
Agenda – Droves of Male Board Retirees Replaced by Women
We’re not sure this qualifies as “droves,” but it is a small step toward what will eventually be gender parity on boards. We hope “eventually” means soon. As male directors leave boards due to age, retirement or opting not to stand for reelection, they are consistently being replaced by an ever-increasing number of women, and,…
Why Finance Firms Should Pay Attention to Activist Investing
activist investing was never really an activity for ‘the people’ historically. Perhaps because ‘the people’ hadn’t yet considered how being a shareholder could be used as a form of activism. Now, we find ourselves amid a retail investor boom, and it shows no signs of slowing down. They even have a name tag for this…
Agenda – Investors Turning Up Heat on Political Spending
Companies heavily ramped up disclosures on political spending policies and oversight in 2021 as investors received massive support on shareholder proposals on the subject, according to an analysis of proxy voting trends. This year, boards should expect that pressure to rise even higher. With the midterm elections looming, boards need to ensure that directors have…
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