Tracking SEC’s Evolving Approach to ESG Disclosures

The SEC is moving—slowly—toward including environmental, social, and governance (ESG) disclosures in public company filings. Although the U.S. House of Representatives’ Financial Services Committee in July 2019 rejected a bill that would have aligned ESG reporting standards closer to those found in the EU and required climate change risk factor disclosures, ESG is an issue…

Climate Change Will Cost Us Even More Than We Think

A set of assumptions and practices in economics has led economists both to underestimate the economic impact of many climate risks and to miss some of them entirely. That is a problem because, as the report notes, these “missing risks” could have “drastic and potentially catastrophic impacts on citizens, communities and companies.” via Opinion |…

The Trust Crisis

Sandra J. Sucher and Shalene Gupta write about trust as an essential element of a company’s brand and risk management strategy, with Boeing, Volkswagen, and Facebook as examples of corporations that are failing to maintain the trust of customers, regulators, and investors. Trust, as defined by organizational scholars, is our willingness to be vulnerable to…

Bank of America Will Stop Lending to Private-Prison Firms – Bloomberg

Bank of America Corp., the second-biggest U.S. bank, will stop lending to companies that run private prisons and detention centers.“We have decided to exit the relationship’’ with companies that provide prison and immigration-detention services, Vice Chairman Anne Finucane said Wednesday in an interview. “We’ve done our due diligence that we said we would do at…

BlackRock CEO Larry Fink letter on Long Term Value

Larry Fink, the chief executive at BlackRock, the world’s biggest investor with $4.6 trillion, just sent a letter to chief executives at S&P 500 companies and large European corporations. The letter focuses on short-termism both in corporate America and Europe, but also in politics, and asks CEOs to better articulate their plans for the future. The…

Free Corporate Performance Index Now Available: Interview with Bennett Stewart

From VEA Vice-Chair Nell Minow: I’ve been a big fan of Bennett Stewart’s approach to evaluating the financial performance and health of companies for a long time, so I was delighted when his company, evaDimensions, made a free version of its Corporate Performance Index available for investors, executives, board members, academics, and anyone else who is…