ESG Archive

Oct 16, 2019
RBC GAM: Why company leaders should care about ESG
‘Responsible investing’ is an umbrella term used to describe the broad range of approaches that can be used to incorporate ESG considerations into the investment process. A decade ago there was prevailing skepticism in the investment community about the impact these non-financial factors might have on prices for equities or bonds. Today, however, investors and market observers have begun to realize the value and importance of ESG factors. At RBC Global Asset Man...
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Oct 08, 2019
Report highlights evolving ESG disclosure in proxy statements
US companies are continuing to ramp up ESG-related disclosures and visual presentations of board processes in their proxy statements, according to an analysis of this year’s crop. Companies have been expanding their reporting on ESG matters amid growing investor interest in those topics. Donnelley Financial Solutions’ (DFIN) report on 2019 proxy statements highlights how far that reporting has come in one of the most important tools issuers have to communicate w...
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Aug 15, 2019
SEC urged to tackle companies’ ESG boasts
The SEC has received the latest request to act on ESG-related disclosures, although agency officials have indicated caution over prescriptive rulemaking in the area. McLean, Virginia-based Energy and Environment Legal Institute (E&E Legal) this week filed a petition urging the commission to ‘take appropriate action to prevent and prohibit registrants from making materially false and misleadin...
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Aug 09, 2019
Hedge funds to increase ESG-linked investments, survey finds
Hedge fund firms expect to increase the amount they invest based on ESG factors next year, according to Iowa-based BarclayHedge. Fifty-eight percent of hedge fund assets will be tied to ESG criteria in 2020, up from 42 percent last year and the current 52 percent, BarclayHedge finds in a survey of global hedge fund managers and commodity trading advisers. ‘The increasing role of ESG ratings among the survey participants isn’t surprising,’ Sol Waksman, p...
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Jul 31, 2019
Investors discuss future of ESG engagement at Sustainable Finance Forum
In mid-June, the University of Oxford and the Rothschild Foundation sponsored the 8th Sustainable Finance Forum, an invitation-only, limited attendance, event. The forum aimed to identify ESG-related initiatives, be a networking and idea-sharing platform, showcase new initiatives and technologies to advance environmentalism, and discuss real issues surrounding issuer engagement. The Chatham House rule applied so key takeaways are highlighted without attribution....
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Jul 18, 2019
Hermes: Industry ESG scores for small and mid-cap companies can be misleading
As the integration of ESG factors into investment decision-making becomes increasingly mainstream, over-reliance on simple answers and third-party industry data, rather than assessing complexities and directly engaging with companies, could lead to smaller companies being unfairly penalized by investors on the basis of partially informed ESG criteria.  The disparity between larger and smaller companies’ disclosure of basic ESG metrics is striking and, even in dev...
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Jul 04, 2019
SSGA's ESG data challenge
Quality data about companies’ ESG practices is critical for effective investment analysis. The lack of standardization and transparency in ESG reporting and scoring presents major challenges for investors. Third-party ESG data providers play an important role, but there are limitations with this data – especially in terms of differing methodologies that lead to variance in scores – that asset owners should understand. Moreover, there is a lack of market infras...
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Jul 02, 2019
What research is unearthing about ESG
Mounting evidence confirms companies can ‘do well by doing good.’ Now researchers are digging deeper into the nuances of that relationship and discovering the need to distinguish between different types of sustainability practices. A key question facing boards today is whether sustainability amounts to a differentiating strategy leading to competitive advantage or a practice bound to spread through imitation and thus important for corporate survival but not nece...
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