Shareholder Commons: First Annual Report

“TSC is a new NGO that is catalysing a paradigm shift in responsible investment.” … In their first year of activity, they have begun to build a field of asset owners, asset managers, advisors, and civil society organisations who want a new toolkit to ensure that profits are aligned with social cohesion and environmental preservation. They…

HSBC Shareholders Ask Bank to Cut Fossil-Fuel Lending Exposure – Bloomberg

A group of HSBC Holdings Plc shareholders have filed a resolution urging the bank to cut its support to the fossil-fuel industry. Amundi SA, Europe’s largest listed asset manager, and Man Group Plc, the world’s biggest publicly traded hedge fund firm, were among 15 institutional investors overseeing a combined $2.4 trillion that are backing the…

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…

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…

Long-term matters: How capitalists can save the Amazon from capitalism

When foundations and wealthy individuals launched their Rapid Response-Able Fund (RRAF) in spring 2020, commentators sneered at the “save the world” motivation while others said it would distract attention from the political changes that were needed. But at $10bn (€9bn), with plans to scale quickly to $100bn, interest in corporate boardrooms snowballed. RRAF would target…

Shareholder Rights Directive II fact sheet – GOV.UK

New guidelines for UK fund managers: Occupational pension schemes are required to document and disclose online their policy on engaging with investee companies, their investment strategy and their arrangements with asset managers. The Pensions Regulator will update their guidance with regards to engagement, investment strategy and asset manager arrangements. Trustees have an important role to…

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…