Will the Banks Collapse? – The Atlantic

A very important piece by Frank Partnoy: American citizens are well aware of the toll [the pandemic] has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there’s another threat to the economy, too….

ESG Outperformance Due to Supply Chain Risk Management

Why have companies with good ESG ratings outperformed in the recent crisis? That is a question many investors are asking now. And on Wednesday Tensie Whelan of NYU Stern Center for Sustainable Business had an interesting new answer to offer: supply chains. Speaking with Paul Polman (head of Imagine), Chris Pinney (founder of High Meadows)…

Has ESG Gone Mainstream?

A new report from Ethical Corporation argues that ESG’s rapidly increasing acceptance is based on understanding that it is about managing risk. “ESG will become much more a part of mainstream investing over the next ten years,” says Carlo Funk, EMEA head of ESG strategy at State Street Global Advisors. “It will move from being…

Warren calls on big U.S. banks for steps on climate risk | Article [AMP] | Reuters

U.S. Senator Elizabeth Warren, a contender for the Democratic Party’s presidential nomination, is asking the biggest U.S. banks for details on their assessments of and preparations for risks related to global warming. “To protect themselves and the economy from climate-driven catastrophes, large financial institutions must act quickly to address risks,” Warren, a frequent critic of…

Good Business: The Year Ahead in Sustainable Finance – Bloomberg

Sustainable investment in 2020: Energy stocks just haven’t kept up with the broader market, which could push investors to look more closely at whether fossil fuels are really a worthwhile investments. Peak emissions aren’t here yet, but they may be close. “Decarbonization is certainly dominating the conversation,” says Bloomberg Intelligence analyst Eric Kane. A Stanford University study says phasing out…

Shareholders pay the price for corruption | Minerva-Manifest

Reflecting the materiality of corruption and risk to shareholders, and to mark International Anti-Corruption Day, (Monday, 9 Dec 2019) Minerva is announcing the inclusion of a new anti-corruption metric in its pre-AGM research reports. Alongside indicators for climate change, cyber-security and tax governance, the new corruption indicator and voting guidelines will help investors take an…

Ceres: Blueprint for Boards on Climate Risk Assessment

Some 73 major U.S. companies recorded material hits to earnings from extreme weather events in one year, while supply-chain disruptions from climate change jumped 29% over the past six years. Once again, we emphasize that ESG is not a trade-off of shareholder value; it is a more sophisticated way of assessing risk. A new report…

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…