Research conducted by Scientific Beta looks at the performance of ESG strategies and asks whether non-financial information in ESG scores offers additional performance benefits. The research finds that the effect of risk adjusting the performance of ESG strategies shrinks the apparent alpha to a level where none of the strategies delivers positive alpha. The post Honey, I shrunk the ESG alpha…
By today’s ESG standards, China falls afoul in many regards. Worker advocacy is one barrier. China’s 996 culture – workers willing to work 9 a.m. to 9 p.m., six days a week
A report from the Organization for Economic Cooperation and Development critiques “current market practices” in connection with Environmental, Social, and Governance investing. It says that the bewildering ratings, investment terminology, and individual metrics, “present a fragmented and inconsistent view of ESG risks and performances.” On the bright side, the OECDRead More
Micro finance is a very contested subject within the realm of ESG investing. The idea, for which a Bangladeshi, Muhammad Yunus won a Nobel Peace Prize in 2006, is that very small loans to very small-scale entrepreneurs within large populations that have historically gone unbanked, and in particular that haveRead More
ESG Insider April 9 is the most recent S&P Global podcast. Co-hosts Lindsey White and Esther Whieldon interview the sponsors of several new proxy proposals. As a shareholder advocate trying to get the word out on my own proposals, I found it interesting and informative. Last season I participated in Tesla Investor Briefing 2020 AGM with […] The post ESG Insider April 9, 2021 Podcast…
A pandemic-inspired bidding frenzy has spurred residents to resist the invasionAs the longer-term psychological and social impacts of Covid begin to reveal themselves, one substantial group is already displaying a mental shift that could inflict lasting damage if only, mercifully, on other people. The pandemic did not merely change this demographic, it inspired in its members an identical quest:…
Nobel Prize winner Professor William Nordhaus, Sterling Professor of Economics and Professor of Forestry and Environmental Studies at Yale University, explains his theory of ‘No Regrets’ whereby companies can integrate ESG at a level that brings real bene
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Exit vs Voice? (link) Which strategy is most effective in moving us in a positive direction? Although most investors, especially retail investors, appear focused on exit by moving to ESG funds, the authors conclude voice is the more effective tool. From the abstract: We study the relative effectiveness of exit (divestment and boycott) and voice […]
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Tariq Fancy once oversaw the start of the biggest effort to turn Wall Street ‘green’ – but now believes the climate crisis can never be solved by today’s free marketsFrom his desk in midtown Manhattan Tariq Fancy once oversaw the beginning of arguably the biggest, most ambitious, effort ever to turn Wall Street “green”. Now, as environmentally friendly investing grows at an exponential rate,…
In the past 12 months the CFA Institute has innovated to adapt to meet member and industry needs. CEO Marg Franklin talks to Amanda White about the benefits of computer-based testing, the CFA's standards around ESG and diversity and its upcoming project around the future of work in the investment industry.
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By Maria Long, Content Director, The Standards Board for Alternative Investments (SBAI) Responsible Investment (“RI”), also known as ESG Investing or Sustainable Investing, is a growing area of interest for asset managers, allocators, and regulators. Historically RI was associated with value-based exclusions of specific securities or sectors from a portfolio,Read More