Taking ESG Investing Mainstream
Incorporating ESG factors into mainstream investing has grown on an absolute level, but relative adoption remains low against the entire market. While it takes time for markets to adjust, part of the reason for the delayed integration is the asymmetrical approach to investing for value and investing for values. This is changing. With reliable data
The Short Report
ESG signals can give strong indications that a stock is primed for a downturn and might be a good target for a short. With reliable data as the foundation, solid analytics map a correlation between two ESG signals, in particular, that have been remarkably predictive and would have resulted in positive returns over the course
Episode 109: Short Signals – ESG Investing Goes Mainstream
In the vast wilderness of ESG investing, Investors seek reliability. When ESG is as familiar as earnings. As fundamental as ROI. As quintessential as EBITDA. Then we will have achieved mainstream uptake.
What is an ESG Audit (and why is this necessary)?
Imagine there were no rules for corporate financial disclosures (such as IFRS or US GAAP, now known as US GAAS, a rather unfortunate acronym). Companies could make up their own ways of reporting financial information—revenues, accounts receivable, inventory, debt, etc.—using their own definitions and preferences. For investors and others who rely on financial statements, this
ESG is Evidently Supported Globally
Keeping up with what is going on in the ESG/Sustainability arena is a continuous challenge. One tool that helps us is a Google Alert that creates a digest of news and articles based on the keywords “ESG” and “sustainability.” Every day we get a listing of items that meet our search criteria. It’s quite useful—although
2RSquared and OWL ESG announce ESG Data Partnership
OWL ESG, the US-based ESG data solutions provider, and 2RSquared, the cloud-based SaaS platform for investment design and delivery, are proud to announce an ESG data integration partnership. With this partnership, users of 2RSquared’s technology platform ‘LAB’ will have access to OWL ESG’s sustainability insights. LAB offers research capabilities and the ability to create tradeable
ESG Data – Why Is This So Difficult?
Picture this scene: A child sits at a desk, slumped in his chair, arms crossed over his chest, a look of defeat on his face. “I can’t do these math problems,” he complains. “They’re too hard. I give up.” An adult who has been in waiting in the background steps closer and says… You can
What is a “Good” CSR Report?
Corporate Social Responsibility (CSR) reports are a critical source of information for anyone interested in the actions a company is taking, and goals it has set, regarding environmental and social issues. But that doesn’t mean that most (or, from a cynic’s perspective, any) CSR reports are as helpful as they should be. We know, because
Why Analyzing ESG Metrics Is So Complicated
Want to analyze a public company’s financial condition? It takes about a minute to download audited financial statements that go back a number of years and use standard categories—assets, liabilities, equity, revenues, and expenses—with definitions that are reasonably well-understood (unless you get into the nuances of things like revenue recognition or accounting for property, plant
The Cost of Bad ESG Data
Ranging from missed opportunities to potentially significant harms, the pitfalls of unreliable ESG data present an unacceptable risk. The market has dictated that environmental, social, and governance (ESG), or sustainability, is more than just a sales tool or talking point. Being responsive to ESG issues fosters an environment of good corporate stewardship and is paramount
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
Transparency Boosts 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
