In the Wall Street Journal, Alex Edmans argues against ESG targets in incentive compensation. Here’s why he’s wrong (but a little right). He is a little bit right in saying that “The evidence shows that paying for targets encourages executives to hit those targets. But it doesn’t necessarily encourage them to improve performance. The crux…
Firms Scrub Dirty Bonds Off Books to Boost ESG Credentials – Bloomberg
A new trend is emerging in the world of ESG as companies turn their attention to cleaning up old debt. They’re either buying back conventional notes, which could finance just about anything, or transforming old securities to green. Italian utility company Enel SpA is leading the charge in buybacks with the largest one to date:…
Joe Kennedy: The SEC must require companies to disclose their risk from climate change
Joseph P. Kennedy III writes in the Washington Post: [W]e are faced with a looming threat to market stability that was not foreseen by our forebears: the growing risk of climate change to our economy — and our very existence. That’s why the SEC must update its regulations and clearly require that companies disclose the…
Australia: CEOs take record hit on bonuses
Bonuses of blue-chip company bosses took the biggest hit on record last year, with nearly a third of ASX 100 CEOs receiving no annual boost to their base salary. Some 31 ASX 100 chiefs received no annual bonus in 2020, double the number from the year before. Among them were those running businesses savaged by…
SEC Asset Management Advisory Committee Recommendations for ESG Disclosure
Recommendations Regarding Issuer Disclosure of Material ESG Matters: – The AMAC recommends the SEC take steps to foster meaningful, consistent, and comparable disclosure of material environmental, social, and governance (ESG) matters by issuers. – To foster meaningful, consistent, and comparable disclosure, the SEC should encourage issuers to adopt a framework for disclosing material ESG matters…
NYU Stern’s free “ESG study” database – ESG Professionals Network
NYU’s immeasurably comprehensive and instantly indispensable database includes 1400 ESG-related studies and provides the following vital conclusions: Time Matters – Improved financial performance due to ESG becomes more noticeable over longer time horizons. Investment Strategy Beats Negative Screening – ESG integration as an investment strategy performs better than negative screening approaches. Downside Protection – ESG…
Toyota reverses course, says it will stop donating to Republican objectors – by Judd Legum – Popular Information
On April 17, Popular Information reported that Toyota was the top corporate contributor to Republican members of Congress who voted to overturn the election. The company’s corporate PAC donated $62,000 to 39 members of Congress who refused to certify the results of the Electoral College. After months of public scrutiny, Toyota announced on Thursday afternoon…
Response to the SEC’s Request for Comments on Climate Change/ESG Disclosure
The SEC has asked for comments on climate change and ESG disclosures. The comment from VEA Vice Chair Nell Minow is attached in full below. Some excerpts: As a general point, I note that some of the comments are not clear about who is funding them, what is paid advocacy, and how suggested changes would…
FirstEnergy Board Must Face Investor Suit Over Bribery Scheme
FirstEnergy Corp.’s directors and officers must face a shareholder derivative suit stemming from their alleged involvement in a bribery, racketeering, and pay-to-play scheme with Ohio politicians, after a federal court in that state found enough support Tuesday for allegations of false or misleading statements or omissions. The allegations that the leadership misrepresented or failed to…
Private Equity Investors Prioritize ESG| Coller Capital
According to Coller Capital’s Private Equity Barometer: Three quarters of Limited Partners say climate change and healthcare/biotech will change their investment priorities in the post-covid world Half of Limited Partners believe a strong ESG policy boosts PE returns Risks to PE returns have risen significantly – but it’s still a good time to invest, LPs…
