NewsRoom Articles - Page 11 of 46

MondaySep 16, 2024 10:00 am

ESG Resistance Brewing as Europe Continues to Enforce Strict Rules

Environmental, social and governance (ESG) regulations in Europe have put companies such as TotalEnergies in a tight spot as they continue to pressure asset managers to invest in ESG standards. These regulations, which aren’t imposed on companies in America, have put businesses in Europe at a valuation and competitive disadvantage to their American peers. Now, companies such as Unilever Plc and Mercedes-Benz Group AG are pushing back against these rules. The European Round Table for Industry recently stated that the strict rules were speeding up loss of competitiveness and warned that prospects were better outside the bloc. In the last…

FridaySep 13, 2024 10:00 am

A New Shift Sees Defense Stocks Appearing in ESG Portfolios

Leaders of defense companies in Europe believe that the ongoing war in Ukraine following Russia’s invasion has significantly changed the way defense stocks are perceived by fund managers. Normally, defense company stocks have been excluded from portfolios based on environmental, social and governance (ESG) factors because of ethical concerns over their link to warfare. In the last few months, however, managers of ESG funds seem to have become even more comfortable with holding defense stocks. This comes as defense spending by countries continues to increase and industry profits soar as governments respond to rising geopolitical risks. Saab CEO, Micael Johansson,…

WednesdaySep 11, 2024 10:00 am

How Leveraging ESG Initiatives Can Create Business Value

Environmental, social and governance (ESG) initiatives help improve social responsibilities of companies, identify and manage risks, meet stakeholder expectations and improve long-term sustainability. Finance leaders are tasked with overseeing the implementation of risk-management strategies and initiatives that drive value. Boston Consulting Group’s Steve Young believes that all individuals in an organization have to be engaged and prepared on their priorities when it comes to ESG. Young explains that employees as well as the leadership team are a company’s ambassadors and are best placed to share ESG progress with stakeholders. For these initiatives to create value for businesses, however, leaders need…

MondaySep 09, 2024 10:00 am

CDP Report Shows Nearly 9 in 10 Banks Base Financial Strategy on ESG Ratings

Latest figures from CDP show that last year, 85% of financial institutions had utilized environmental, social and governance (ESG) ratings to seek out climate-related opportunities, collectively managing more than $4 trillion in assets. These institutions credited these ratings for significant financial gains, calling attention to the crucial role ESG ratings play in their operational strategies. This comes as regulators around the globe focus on ensuring the transparency and reliability of ESG data products. The International Organization of Securities Commissions recently rolled out a framework that champions for improved transparency, management of conflicts of interest and better oversight. Pietro Bertazzi, CDP’s…

FridaySep 06, 2024 10:00 am

Deloitte Survey Shows Uptick in ESG Management Jobs, Sustainability Reporting

A recently conducted survey has determined that more companies are integrating environmental, social and governance (“ESG") into their risk management, corporate planning and governance strategies. The survey, carried out by Deloitte earlier this year, focused on 300 senior business leaders at companies that generate no less than $500 million in revenue. The leaders surveyed represented various industries, including oil and gas; financial services; technology, media, and telecommunications; life sciences and health care; and consumer products. The survey’s findings show an increase in the appointment of general counsel teams and chief sustainability officers responsible for sustainability reporting in companies, up 41% and…

WednesdaySep 04, 2024 10:00 am

Why Commodities Are Finding Their Way into ESG Portfolios

A recently conducted analysis has determined that more fund managers are including mining, gas and oil stocks in portfolios registered as environmental, social and governance (ESG). The analysis was carried out by Goldman Sachs Group Inc., with investigators examining funds registered under the Sustainable Finance Disclosure Regulation. This is the largest ESG investing rulebook globally and is focused on improving the comparability and clarity of sustainability disclosures. This regulation classifies sustainable funds into two: the strictest (Article 9) and the broadest (Article 8). The investigators found that in comparison to 12 months ago, fund managers were generally more exposed to…

FridayAug 30, 2024 10:00 am

Indiana’s Secretary of State Alleges BlackRock Committed Securities Fraud over ESG Funds

Diego Morales, the secretary of state of Indiana, recently penned a cease-and-desist letter to BlackRock for securities fraud. Legislators in the state have already approved a bill that prohibits contentious strategies for environmental, social and governance (ESG) investment. In the letter, Morales accused the company of making misleading and false statements concerning its ESG funds. The letter was issued to the company through the state’s securities division, which regulates the securities industry. It is almost identical to a letter issued by Michael Watson, Mississippi’s state secretary. Indiana’s securities division claims that the asset manager repeatedly told investors in the state…

WednesdayAug 28, 2024 10:00 am

BlackRock’s Support for Shareholder Resolutions on ESG Dips to New Lows

Last week, BlackRock Inc. reduced its support for shareholder proposals associated with environmental, social and governance (ESG) issues to 4.1%. The multinational investment company made the announcement in its recent AGM, revealing that most proposals had been declined. As of June 2024, 493 resolutions had been submitted, which was an increase from the 455 submitted last year. Last year, the company supported 6.7% of environmental and social-related resolutions, which makes the recent announcement quite a decrease, especially when compared to the support it gave proposals in the 2020–2021 period. Morningstar Sustainalytics’ director of investment stewardship research, Lindsey Stewart, stated that…

TuesdayAug 27, 2024 10:00 am

NYC’s Head of ESG Says Managers of Private Markets Are Unbothered by Backlash

John Adler, the head of ESG for retirement systems in New York, revealed recently that there had been no withdrawals on environmental, social and governance (ESG) among managers of private markets. In a recent interview, Adler explained that private market managers were focused on strengthening their ESG processes and had already allocated more resources to work on these initiatives. He called to attention the differences between managers of private markets and their public market counterparts, noting that while both sides seemed to be working on ESG, public market managers didn’t necessarily announce their moves. This may be because over the…

FridayAug 23, 2024 10:00 am

US Federal Court Issues Permanent Injunction Against Law Blocking ESG in Missouri

Earlier this week, a federal court issued a permanent injunction against a law that restricts financial professionals from integrating environmental, social and governance (ESG) considerations into their investment advice. In their ruling, the judges argued that the law was unconstitutional and vague. District Judge Stephen Bough, who presided over the case, found that the vagueness of these regulations was especially bothersome given the penalties imposed on those who didn’t comply. These penalties include a civil penalty of $25,000 for every violation along with loss of registration and criminal penalties. The injunction bans the application, enforcement or implementation of the regulation.…

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