CERES Ties Governance to Environment

From Ceres, a new report called Blueprint for Responsible Policy Engagement on Climate Change. The full report is below. An excerpt: Companies that establish robust governance systems to address climate change as a systemic risk and align their direct and indirect lobbying efforts to support science-based climate policies will drive the creation of a regulatory…

Paper: ESG Shareholder Engagement and Downside Risk

A new paper from Andreas G.F. Hoepner, Ioannis Oikonomou, Zacharias Sautner, Laura T. Starks, and Xiao Y. Zhou asks “whether engagement on environmental, social and governance (ESG) issues can benefit shareholders by reducing firms’ downside risk, measured using the lower partial moment and value at risk. Using a proprietary database, we provide evidence supporting this hypothesis….

Investor Mining and Tailings Safety Initiative | The Church of England

The Church of England Pensions Board and the Council on Ethics of the Swedish National Pension Funds convened a global tailings summit to review the progress of the industry 9 months after the disaster at Brumadinho.  This summit included:  Release of Phase 1 of a new project: the New Global Independent Tailings Database, including initial…

State Street CEO Takes the Long View on Shareholder Activism – WSJ

As CEO of State Street Corp., STT 2.10% Ronald O’Hanley is on the front lines of shareholders’ push to bring change to corporate boardrooms. State Street, STT 2.10% whose money-management arm oversees $2.7 trillion in assets, has amassed significant governance power in recent years as investors shifted more money into the lower-cost, index-tracking funds it…

Wake Up Call for Corporate Leaders on ESG, Sustainability, and Engagement

Edelman’s 2019 “Trust Barometer” shows a strong swing toward ESG and sustainability from investors. We believe the first of their conclusions listed below is misleading. It cannot be emphasized too strongly that sustainability by its very definition is not a trade-off for returns; it is essential for returns, both present value and long-term, as the…

Stewardship moves beyond box ticking | Minerva-Manifest

The Financial Reporting Council (FRC) has published a new UK Stewardship Code which is due to come into effect on 1 January 2020. The revised Code has set a higher standard for how money is invested on behalf of UK savers and pensioners that the FRC said reflects “the changing expectations of investors and the…

Converging on climate lobbying: aligning corporate practice with investor expectations | Reports/Guides | PRI

PRI’s new guidance for engagement on corporate climate denial and lobbying: nvestors are increasingly scrutinising corporate engagement on climate policy as it plays a critical role in helping governments create practical climate policy solutions. However, corporate engagement on climate policy is a double-edged sword.  Negative and resistant corporate interest, often represented by third-party organisations, can…

Investors turn up the heat on governments over climate change – CNN

Investors managing assets worth $35 trillion are sending a message to governments and companies: Do more to fight climate change. A group of 515 investors on Wednesday urged policymakers to act with the “utmost urgency” to comply with the goals of the 2015 Paris climate agreement, which seeks to limit global warming. “Much more needs…