ESG Archive

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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Jun 25, 2019
Inside the integrated reporting standard-setters
How does the International Integrated Reporting Council (IIRC) approach ESG reporting? The International Integrated Reporting Framework is principles-based and market-led. It is based on the three fundamental concepts of value creation, the business model and six ‘capitals’ used by the business to create value over time. Integrated reporting is an inclusive model of reporting, making the explicit connection between all the material value-creatio...
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Jun 25, 2019
Looking for value in the ESG ecosystem with Nuveen
Nuveen launched a dedicated ESG strategy back in 1990. How did that come about? AOB: Nuveen – and TIAA more broadly – has been involved in investment-related activities leveraging ESG factors since the 1970s, when the first shareholder proposals on social issues began appearing on company ballots in the US. We launched our first ESG-focused funds in 1990, in response to growing client demand for such options. For us, responsible investing ...
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Jun 24, 2019
Developing the SASB framework
What’s unique about SASB’s approach to ESG reporting? SASB is an independent standard-setting organization that develops and maintains reporting standards that help businesses around the world identify, manage and communicate sustainability information to investors – information they need before making financial decisions. We help companies identify the subset of ESG issues that the firm determines to be financially material and that affects fi...
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Jun 21, 2019
How CDSB approaches aligning climate disclosure
Can you describe CDSB and its role in ESG reporting? CDSB is an international consortium of business and environmental NGOs committed to aligning the disclosure of environmental information in mainstream corporate reports such as annual reports, 10K filings and integrated reports. We offer firms a framework for reporting environmental information with the same rigor as financial information. The CDSB Reporting Framework is a collection of best practi...
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