Three Ways to Identify Governance Risk l Enterprising Investor
by Charlie Henneman, June 16, 2016
As more investment professionals acknowledge that responsible investing is coming of age, how environmental, social, and governance (ESG) issues can be incorporated into the investment process has taken on increasing urgency. Among the major questions to consider: Can ESG concerns be aligned with responsible investment practices? Must financial returns be sacrificed in the name of sustainable investing?
Socially Responsible Investing l Michael W. Frerichs
Environmental, Social and Governance Priorities
Investing means making choices. For the Treasurer’s Office, it means choosing investments that are safe, high-performing, and socially impactful. In regard to that third component, it means making investments that build stronger communities in Illinois, foster business innovation, and reflect our core values relating to diversity, integrity, and public accountability. These decisions have the ability to promote education, access, and opportunity for individuals and governmental bodies across our state.
The Financial and Social Benefits of ESG Integration: Focus on Materiality l Calvert Investments
- Material environmental, social and governance (ESG) issues impact a company's financials in terms of revenues, costs, and the cost of capital.
- Because ESG data is slow to be incorporated into stock prices, investors who accurately understand ESG implications typically have time to take advantage of opportunities and generate alpha.
- A study from George Serafeim and colleagues at the Harvard Business School indicates that firms making investment in material ESG issues outperformed peers in terms of profit margin growth.
- Firms making investments based on immaterial ESG issues demonstrated very similar performance to peers, suggesting that immaterial ESG investments are not, on average, value-relevant.
by Chris Dieterich, June 14, 2016
A host of exchange-traded funds are coming to market with the purpose of capturing shares of companies that are deemed to be both socially responsible and financially viable.
In ETF parlance, such funds are “smart beta” and environmental, social and governance (ESG) kosher. In plain English, the funds shoot for stocks that get good grades and go to church. For a long time, the knock against ESG investing has been, basically, that investing solely in stocks that go to church might warm your heart but will probably lose you money.
Brown Launches Sustainable Investment Fund l Brown Together
June 14, 2016
The Brown University Sustainable Investment Fund (SIF) complements Brown’s efforts to promote sustainability—outlined in the Building on Distinction strategic plan—by embracing environmental, social and governance (ESG) investment standards, and promoting active solutions to the challenges of climate change among other environmental and societal concerns.
FTSE Russell launches green revenue benchmark l Asia Asset Management
June 13, 2016
Having pioneered the development of environmental, social and governance (ESG) benchmarking tools, global index and data provider FTSE Russell is now taking sustainable investing to the next level by helping to shift investment capital into the green economy.
Out of the Sustainability Doldrums | MIT Sloan Management Review
by Gregory Unruh, June 10, 2016
Investors are beginning to see a strong link between corporate sustainability performance and financial performance. That’s creating a bigger demand for better data — and better business models. The shift is catching many executives off guard. They are unprepared, and none more so than those in investor relations, where only one in four IR professionals say they explain sustainability’s bottom-line impact to investors.
John Hancock Investments launches two ESG funds l PR Newswire
June 6, 2016
Trillium Asset Management to manage John Hancock ESG All Cap Core Fund and John Hancock ESG Large Cap Core Fund.
BOSTON, June 6, 2016 /PRNewswire/ -- John Hancock Investments today announced the addition of two new funds focused on integrating environmental, social, and governance (ESG) issues with fundamental stock research. John Hancock ESG All Cap Core Fund and John Hancock ESG Large Cap Core Fund are both managed by Trillium Asset Management, LLC, the country's oldest investment advisor exclusively focused on sustainable and responsible investing.
Sustainability increasingly on radar of executives, find BCG and MIT l Consultancy.uk
June 6, 2016
As it becomes clear that the world cannot sustain humanity's current form of wasteful existence in the long term, efforts are being made to transform business and society towards a more sustainable future. In recent years, more investors are becoming keen on their investments performing well on sustainability metrics, because of both improved business performance and in relation to longer term goals. Companies remain slow to react however, with many lacking a sustainability strategy or a business case in which a good sustainability performance stands out.
Bloomberg Briefs l Sustainable Finance
June 2, 2016
This week's Bloomberg Brief highlights global carbon pricing talks and green investing advisers facing hurdles incorporating responsible investing into their offerings.