CFO leadership of sustainability initiatives is crucial for long-term value creation—as well as for ESG objectives. It starts with fundamentals: many CFOs are already fielding questions from investors, and most companies can expect to face a barrage of reporting and compliance requirements in the coming years. Here is where they can build trust among stakeholders,…
Tag: sustainability
WSJ Series Argues That The “Sustainable Investment Craze Is Flawed”
A new series in the Wall Street Journal by James Mackintosh argues that ESG investing is not effective, calling it a “craze.” We note that investing based on a view about “inevitable” retreat from fossil fuels, based on predictions about consumer and regulatory shifts, is not political, especially as Mackintosh concedes that investors base their…
ICGN Governance Principles Updates: Evolution of corporate governance in the face of existential change | Ethical Boardroom
Key governance changes: We have emphasised the importance of independent board leadership and a clear division of responsibilities between the role of the chair and CEO to avoid unfettered powers of decision-making. We also think the roles of both should be clearly described and publicly disclosed as well as the role of the lead independent…
Global Compact Calls on Sustainable Businesses to Combat Authoritarianism in the U.S.
Thousands of U.S. companies have signed onto the United Nations Global Compact, which calls upon sustainable businesses to “create the world we want.” That goal is running up hard against the authoritarian trend in national politics. With the Compact slated to meet later this week, it is incumbent upon U.S. business leaders to act in…
A “Tectonic Shift” Toward Sustainability: BlackRock Investment Institute
A focus on sustainability can help make portfolios more resilient. We believe the adoption of sustainable investing is a tectonic shift that will carry a return advantage for years to come – and the coronavirus shock seems to be accelerating this shift. via Global Weekly Commentary | BlackRock Investment Institute A commonly held view is…
Illinois State Treasurer: Sustainability Report
Michael W. Frerichs of the Illinois State Treasurer’s Office has released the 2019 Annual Sustainable Investment Report. An excerpt: – Passage of the Illinois Sustainable Investing Act – Spearheaded by Treasurer Frerichs, Illinois became the first state in the nation to pass a law establishing a framework for public fund managers to integrate sustainability factors in their…
The Future Climate Economy Will Be Decentralized: Green Insight – Bloomberg
the energy transition, climate change and social demographic trends are set to create a world where everything is more decentralized. One example of what may be coming is in Japan, which this week announced that it’s planning to revamp its green power law to promote distributed solar power. We’re already getting a major preview of the future…
Why Fossil Fuel Companies Are Reckoning With Climate Change | Time
As concerns grow over the existential challenges posed by climate change, Shell must grapple with its own existential crisis: How should a company that generates most of its profits by serving the world’s enormous appetite for oil navigate a long-term future in which shifting political and economic tides threaten to make fossil fuels obsolete? The…
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…
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…
ValueEdge Advisors 