ESG Archive

Dec 15, 2020
Expect move toward assurance of ESG disclosures, experts say
As investor demand for ESG information continues to increase, a group of ESG experts believe pressure will build on issuers to seek third-party assurance for ESG disclosures in the near future. Third-party assurance has been a talking point for the last two years at the ESG Integration Forum – US, hosted by IR Magazine and Corporate Secretary. At both forums, audience members have expressed trepidation about seeking third-party assurance, with common conc...
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Dec 11, 2020
The week in GRC: Vatican launches ‘inclusive capitalism’ initiative and Tesla publishes its first diversity report
– The Wall Street Journal reported that ExxonMobil faces the threat of a proxy fight from a new activist investor with a sustainability focus. Engine No 1 was preparing to send a letter to Exxon’s board urging the company to focus more on investments in clean energy while cutting costs elsewhere to preserve its dividend. The letter ident...
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Dec 10, 2020
Strong corporate purpose correlates with improved financial results, study finds
When the Business Roundtable released its Statement on Corporate Purpose in August 2019, it was met with equal praise and skepticism. By the strictest definition of investor relations, stakeholder capitalism and corporate purpose should be important only if investors deem them to be material, but the continued evolution of ESG engagement shows that materiality is dynamic and def...
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Dec 08, 2020
Governance Matters: Understanding Federated Hermes’ ESG integration and emerging themes for the 2021 proxy season
For corporate governance teams, the proliferation of socially responsible investment asset managers presents both risks and opportunities. Ignore their expectations and you might expect not only a higher cost of capital but also a slew of unwelcome consequences on the proxy front. In the latest episode of the Governance Matters podcast, we catch up with Martin Jarzebowski, director of ESG and responsible investing at Federated Hermes, about his firm’s approach to ...
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Dec 04, 2020
The week in GRC: Federated Hermes targets diversity and companies press Congress on climate change
– CNN reported that a vote on whether Swiss companies should face greater liability at home for human rights and environmental abuses committed overseas did not pass. Provisional results showed that more than 50 percent of voters approved of the Responsible Business Initiative but it did not garner support from the majority of cantons and both are necessary for a referendum i...
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Dec 02, 2020
Asset managers complain over CFA’s proposed ESG standards
CFA Institute’s plan to create a global ESG standard has triggered concern among some US and European asset managers already juggling overlapping regulations and rising costs in a crowded space. Virginia-based CFA Institute, which offers chartered financial analyst certification globally, has launched a consultation, gathering feedback on its proposed principles of voluntary ESG disclosure standards for investment products. It aims to issue a draft voluntary stand...
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Dec 02, 2020
TCI goes global with ‘say on climate’ campaign
The Children’s Investment Fund (TCI) has significantly expanded its ‘say on climate’ campaign, with resolutions filed at several US-listed companies and plans to target ‘hundreds’ more. The hedge fund, managed by Sir Christopher Hohn, will also focus on companies in Canada, the UK and continental Europe as it seeks to push management into more urgent action over global warming.  On a recent ...
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Nov 30, 2020
SASB and IIRC merger targets simplified sustainability disclosure
SASB and the International Integrated Reporting Council (IIRC) are to merge into one organization by mid-2021 with the aim of offering investors and companies a comprehensive corporate reporting framework to drive global sustainability performance. The newly formed Value Reporting Foundation, to be headquartered in London and San Francisco, will advance initiatives by SASB, the IIRC, the C...
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Nov 23, 2020
ESG: Social seen as most difficult to analyze
Improved long-term returns and risk mitigation are the key motivators behind ESG integration, with social seen as the most difficult element to analyze and integrate, according to a series of snap polls held at the recent Truvalue Labs ESG Investing Forum. Almost two thirds (72 percent) of respondents say social is the most difficult to analyze and integrate, while less than a fifth (18 percent) say environmental and just 10 percent say governance is the most diffic...
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Nov 20, 2020
More investors want executive pay tied to ESG
More than two thirds of investors want executive pay tied to ESG initiatives, a move that would pressure boards to achieve social and other key targets, according to the global Edelman Trust Barometer Special Report: Institutional Investors. Sixty-nine percent of stakeholders say they want to see a link between remuneration and ESG, a 17-point jump over 2019. ‘This is probably one of the biggest percentage-point...
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