Category: ESG

Return on Sustainability Investing
ESG

Return on Sustainability Investing

When deciding whether to pursue a project, a company’s CEO and CFO are likely to ask, “what’s the expected return on investment?” (Note: to head off the emails that statement might generate, we acknowledge that the preferred approach is to compute a project’s net present value, but we’ll leave it to corporate finance textbooks to

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Employee Well-being and the Bottom Line
ESG

Employee Well-being and the Bottom Line

Workplace stress is not a new phenomenon. The term “stress” (borrowed from physics) was first applied to humans in the 1920s, and the American Institute of Stress developed its Workplace Stress Scale in 1978. Post-pandemic, there are new aspects to workplace stress for employers to consider. For example, “hybrid workplace anxiety” (we think we just

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Green Bonds – What They Do, and Evidence from Academia
ESG

Green Bonds – What They Do, and Evidence from Academia

Governments and corporations issue green bonds to fund projects with positive environmental impacts, such as developing renewable energy, improving energy efficiency, controlling pollution, providing clean transportation, constructing or retrofitting green buildings, improving wastewater management, and supporting climate change adaption. According to the Climate Bonds Initiative, annual issuance of green bonds more than tripled in the

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The Relationship between ESG and Bonds – A Quick Tour
ESG

The Relationship between ESG and Bonds – A Quick Tour

The basic premise of incorporating environmental, social, and governance (ESG) factors into an investment analysis is that an investment’s value can be affected (positively or negatively) by those factors. There are many reasons this makes sense, across all three pillars of E, S, and G, and volumes have been written on the topic. Just to

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Modern Slavery in the Corporate Arena
ESG

Modern Slavery in the Corporate Arena

When you first hear the term “modern slavery”  it might sound like an exaggeration intentionally designed to arouse strong emotions and perhaps push an agenda. Or perhaps you think it is something from the plot of a dystopian novel. We wish that were true. Unfortunately, it was not taken from fiction or invented by some

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The Ivory Tower – With ESG Studies, the Devil’s in the (Data) Details
ESG

The Ivory Tower – With ESG Studies, the Devil’s in the (Data) Details

The body of research on environmental, social, and governance (ESG) scores and stock returns is large and growing. A search on GoogleScholar using that phrase shows that since 2018 alone, roughly 11,700 academic articles have been published on what ESG scores reveal about stock returns, or whether ESG scores have any consistent relationship with stock

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greenwashing or a misunderstanding
ESG

Greenwashing, or Just a Misunderstanding?

Here’s something we’ll bet you already know:  there has been pushback in certain circles against investing based on environmental, social, and governance (ESG) criteria. While often described as “anti-ESG”, some—not all, but some—of that pushback is not actually an objection to ESG per se. It stems from a suspicion that some asset managers, mutual funds,

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ESG AND PRIVATE EQUITY
ESG

ESG AND PRIVATE EQUITY

ESG is getting more private. No, we don’t mean that ESG topics are becoming secretive, quite the contrary! By “private” we mean “private markets.” Sustainable funds and sustainable investing (not one and the same, but that’s a different topic!) are becoming more common in the private equity (PE) arena.  This is notable for a few

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Sustainability Joins the C-Suite
ESG

Sustainability Joins the C-Suite

Most mid-sized and large companies have a CEO, COO, CFO, CTO, CIO, CMO, and a CHRM (or some other title that covers the HR function). In recent years, many have added a CSO – Chief Sustainability Officer, but others are not yet familiar with the term. Some may wonder what the role entails and may

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TRANSPARENCY BOOSTS SUSTAINABILITY and THE EU LEADS THE WAY
ESG

Transparency Boost Sustainability And The EU Leads The Way

Most of us would readily agree that Europe offers various things that are unmatched in other parts of the world – great cuisines, rich histories, beautiful villages – and, of course, precedent-setting guidance on sustainability reporting. Recently, the EU parliament adopted the Corporate Sustainability Reporting Directive (CSRD), with 525 votes in favor, 60 against, and

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ALPHABET SOUP IN THE EU
ESG

ALPHABET SOUP IN THE EU:  PAI AND DNSH IN THE SFDR

Every field, from accounting to sports to manufacturing, has its own vocabulary and acronyms that shorten otherwise cumbersome descriptions. If you know football, you know what a “Hail Mary” is – no need to explain.  The sustainable investment field hasn’t been around all that long but it has already generated a rather impressive collection of

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Does ESG live in a “Material World”
ESG

Does ESG live in a “Material World”? (sorry, Madonna fans)

When you read the notes to companies’ Annual Reports you will come across the concept of financial materiality. Should a company uncovers an error that caused it to misstate revenues, expenses, or valuations, if the amount of money involved does not exceed a certain threshold, it is not required to restate its financial results. Why?

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