Global Climate and Sustainability Reporting Continues to Grow

The momentum toward universal mandatory reporting and disclosure on climate risk and sustainability has gained additional strength with recent developments at the international, domestic and state levels. These steps follow years of calls from investors for standardized and comparable climate-related disclosures. International. In June, the G7 Finance Ministers and Central Bank Governors issued a statement…

SEC Commissioner Hester Peirce’s Disingenuous Slant on ESG

SEC Commissioner Hester Pierce, who came to the Commission from the Koch-funded, ultra-anti-regulatory Mercatus Center, the same person who informed the Council of Institutional Investors that their members did not know what it was that investors needed, is now speaking out against ESG disclosures, in a speech to Brookings. What is especially infuriating about Pierce…

An Unpersuasive Argument Against ESG Targets in Executive Compensation

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…

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…

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…

Agenda – Considering ESG Pay Targets? Europe Offers Clues

Last year, U.S. companies trailed their European peers in tying environmental, social and governance metrics to their executive pay packages. Yet many businesses may need to prepare for regulatory changes requiring American companies to make such disclosures in the future, according to advisory firm Pay Governance LLC. The Pay Governance study showed that 22% of…

Making companies tell the truth about climate change

Michael Hiltzik writes in the LA Times about pressure on corporations from investors and government to get better data on climate and other ESG risks. [I]nvestors have been asking for much more from corporate managements — more disclosures about how their activities contribute to climate change, and more about how climate change will affect their…

Proxy Preview: Record Votes for ESG Proposals

The Proxy Preview team today released highlights of the unprecedented 2021 proxy season, which saw nearly three dozen majority votes for disclosure and action on environmental, social, and sustainable governance (ESG) shareholder resolutions. To date, there have been 34 majority votes for ESG proposals, shattering last year’s record of 21. More are likely by year’s…