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January 29, 2018

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A Big Year, 2018 – Tipping Points For Developments in Corporate Sustainability & Sustainable Investing…

Volume & Velocity
Those may well be the key characteristics of developments in corporate sustainability and in sustainable investing in the year 2018.

Linda-Eling Lee, Global Head of Research for MSCI’s ESG Research Group and her colleague Matt Moscardi (Head of Research Financial Sector, ESG) this week described what they are projecting in the traditional early-in-the-year setting out of key ESG trends to watch by the influential MSCI ESG team:

Bigger, faster, more – that’s how Linda describes the “onslaught of challenges happening soon and more dramatically that many could have imagined” in the corporate sector” (including policy, technology, and climate change as key factors).

Investors (in turn) are looking for ways to better position their portfolios to navigate the uncertainty of the 2018 operating environment in the corporate sector.

As the “heads up” for investors and companies-- the five key 2018 trends projected by MSCI’s ESG researchers/analysts:

  • Investors will be using ESG “signals” to navigate the size/shape of the Emerging Markets investment universe to pick the winners for portfolios.
     
  • The first steps are coming in “scenario testing” for climate change (this is systematically looking at risks emanating from company carbon footprints across asset classes, with short- and long-term transition scenarios).
  • The fixed-income universe will see acceleration (velocity) with the alignment of ESG frameworks by investors across all asset classes.

And this is very important for the corporate sector: 

Investors are looking beyond the growing volume of corporate disclosure and reporting for data.
Keep In Mind: 
65% of a company’s rating by MSCI is based on
data sources beyond the corporate reporting!
 

MSCI sees 2018 as the Year of the Human – it’s about human talent, talent, talent!  That is, what companies do to help in the transitioning to new working environments (with the changes brought about by automation, AI, robotics) that will be factored into the analysis of public companies by the MSCI ESG team, and measured over time (for outcomes).

Already, at the Davos meeting this week, major global firms in IT are creating an initiative to “tech-reskill” one million people to meet the global skills gap challenge inherent in the “Fourth Industrial Revolution” (firms are Cisco, Accenture, CA Technologies, HP, Infosys, Salesforce, SAP, Tata Consultancy, others).

What we think company managements / boards should expect in the “volume and velocity” context:  many more investors (the volume / especially large fiduciaries) are embracing comprehensive ESG factors in their analysis and portfolio management approaches with a faster uptake of this trend among the mainstream elements of the capital markets players (the velocity).

There’s more information on this and other critical 2018 tipping points for corporate managers and investment professionals in the comprehensive management brief from the G&A Institute team posted on our G&A Institute’s “To the Point!”platform for you.

We’re presenting here more details on the MSCI trends forecast and important developments at the start of the year 2018 that will shape the operating environment throughout the year – and beyond! Read the brief here!

REMINDER:
The SASB Public Comment Period Closes Jan 31st:

Our Top Story For You...

What Can CFOs Learn About Sustainability From The Carillion Saga?
(Wednesday - January 17, 2018) Source: Forbes - A few years ago I learned that the basic principle of good working capital management was this: get your customers to pay you as soon as you can (ideally upfront) and pay your suppliers as late as you can get away with...

About Sustainability: Progress Is Being Made - We See Forward Momentum! For Your Attention: The Editors' Scans

7 Ways To Build A Sustainable Work Culture
(Tuesday - January 16, 2018) Source: GreenBiz - Most people believe in the need to act sustainably to protect our environment, and most business leaders appreciate both the broader benefits and the direct positive impact of sustainable behavior on their bottom line...

How Technology Will Impact Business Sustainability And Efficiency
(Tuesday - January 16, 2018) Source: Telegraph (UK) - From smart robots improving operations to IoT enabling firms to patch products remotely, here's how technology will change this space. 

Two UAE Schools Could Win Photovoltaic Panels In Sustainability Champions Competition 
(Tuesday - January 16, 2018) Source: The National - Two UAE schools could win an Expo 2020 award and a share of Dh1 million-worth of photovoltaic panels for their building as a reward for working on innovative projects to fight climate change, it was announced on Monday. 

Fracking Is One Of The Least Sustainable Ways To Produce Electricity, Says New Study
(Wednesday - January 17, 2018) Source: Independent - When comparing environmental, economic and social sustainability, scientists find shale gas extraction ranks seventh out of nine different energy sources…

The Hard Work of Making Sustainability Management Real
(Wednesday - January 17, 2018) Source: Huff Post -In a world dominated by media images and symbolism, the difficult work of sustainably managing our organizations can take a back seat to the easier job of looking like we are accomplishing something. 

5 Strategies To Capture Sustainability Opportunities
(Wednesday - January 17, 2018) Source: Alley Watch - As I have said many times, the cost of entry for an aspiring entrepreneur has never been lower, and the total wealth of opportunities has never been larger. 

Wake Up: The Time For Sustainability In The Luxury Industry Is Now
(Thursday - January 18, 2018) Source: Technode - November 11 hosts one of the largest retail events in the world – 11.11 also known as Singles’ Day. A total of over $38 billion was made through online discount sales – with 331 million packages being delivered by various postal..

Sustainability 101
(Thursday - January 18, 2018) Source: Business Mirror - The global development goals adopted by the United Nations and its member-states for 2016 to 2030 are the Sustainable Development Goals (SDGs), collectively called the SDG Agenda. The SDGs have succeeded the Millennium... 

Plastics Industry Association releases statement on sustainability
(Friday - January 19, 2018) Source: Recycling Today - The Plastics Industry Association, which is based in Washington, has announced that it has adopted of its first-ever Sustainability Statement, adding that it “codifies the association’s dedication to sustainability.”

Sponsored Message

Our Focus This Week on A Range of ESG Topics & Issues – More Things to Think About…

10 New Year’s Resolutions For Your Firm’s Corporate Governance
(Tuesday - January 16, 2018) Source: IT World Canada - Start by asking yourself a few tough questions (before your investors do) and take a close look at what your board diversity and next-gen company leadership. 

10+ Ways To Be Nicer To The Environment In 2018
(Tuesday - January 16, 2018) Source: CBC - A new year can feel like a new start in many ways and many of us consider it a time to change our habits, from taking better care of ourselves to taking better care of the world around us. 

State of Green Business Report 2018
(Wednesday - January 17, 2018) Source: GreenBiz - Each year, we take a step back from the headlines and conferences to assess how, and how much, companies were integrating sustainability into business strategy and operations.

Tax Law Brings Big Paper Losses, Long-Term Gains To U.S. Banks
(Wednesday - January 17, 2018) Source: Post-Dispatch - Big U.S. banks have been reporting billions of dollars in paper losses this month as they are forced to come into compliance with the new tax law. And while the losses are massive, they were largely expected, and bank... 

Does Socially Responsible Investing (SRI) Outperform?
(Friday - January 19, 2018) Source: nanalyze.com - In our recent article on Swell Investing, we took a look at some impact investing portfolios that allow investors to only invest in companies that “do good”. 

How to fight the F-word and avoid epic business failure
(Friday - January 19, 2018) Source: Dan Draz, fellow at the Governance & Accountability Institute, Biz Journal - Dan Draz of the Detective Dan Project, providing public awareness information for businesses and consumers across North America. He's also a Certified Fraud Examiner and fellow at the Governance & Accountability Institute, with...

Relentless’ growth could see the US topple Russia, Saudi Arabia as world’s largest oil producer, IEA says
(Friday - January 19, 2018) Source: CNBC - The U.S. is well-placed to overtake the likes of Saudi Arabia and Russia as the world's leading energy producer over the next 12 months, according to the latest monthly report from the International Energy Agency (IEA). 

News for You From the Corporate Sector -Both Positive & Negative - Headlines 

McDonald's sets goal of recycling, 100% sustainable packaging by 2025
(Wednesday - January 17, 2018) Source: USA Today - McDonald’s announced Tuesday that it has set two ambitious environmental goals that it wants to achieve by 2025. 

Adidas Moves Forward Sustainability In Fashion
(Wednesday - January 17, 2018) Source: Climate Action Programme - Adidas, one of the global leaders in the sporting industry, has partnered with Fashion For Good – a global platform acting as a convener for change, to scale up sustainable innovation in the apparel industry. 

Nestle is selling its U.S. candy business to Ferrero for about $2.8 billion - text/video
(Wednesday - January 17, 2018) Source: USA Today

Whirlpool’s Voglewede Pursues a Sustainable Customer Connection
(Thursday - January 18, 2018) Source: Industry Week

JPMorgan CEO James Dimon's 2017 Total Compensation Up 5.4% To $29.50 Mln
(Friday - January 19, 2018) Source: NASDAQ

News & Opinion: Asset Managers, Sovereign Wealth Funds, Pension Funds

One person is probably responsible for almost 600 percent of Bitcoin's price rise
(Wednesday - January 17, 2018) Source: Mashable - it turns out that one person or one coordinated group is likely responsible for a massive increase in Bitcoin's value back in 2013. Yup, just one. 

G&A's To The Point! is a businesss intelligence web-platform resource. This management briefing service offers timely insights and perspectives on Corporate Sustainability, Responsibility & Citizenship.Click here to request a trial subscription. Below are links to a sampling of three recent briefs:

THE UNIVERSE OF ESG RANKERS SERVING INSTITUTIONAL INVESTOR CLIENTS EXPANDS to Include a Significant Player: Institutional Shareholder Services (ISS)

INVESTORS AND THE SDGS — AND YOUR COMPANY. How Are Investors Using the UN Sustainable Development Goals to Evaluate the Performance of Public Companies?

CAUTIONARY NOTES FOR SUPPLY CHAIN MANAGERS & Others Involved in Global Sourcing & Partnerships (Human Trafficking & Modern Slavery Conditions Raise Reputational Risks

 

TRAINING OPPORTUNITIES

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G&A Institute Sustainability Update
Informative, insightful, thought provoking
Governance & Accountability Institute's blog focusing on the sustainable world evolving daily before our eyes. Read it, absorb it, question it and challenge.

We Love “Top 10” Lists, Right? So – Who Were The Top 10 Movers & Shakers in Sustainability 2017? Huff Po Has Their List… Who Are Your Nominees?

The Important Group of ESG Rankers for Institutional Investors Expands to a Significant Player — Institutional Shareholder Services (ISS)

2017’s Top 10 Sustainable Business Stories – HBR Author Andrew Winston Weighs In – What Are Your Top 2017 Stories?

 

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G&A WEBINAR SERIES

Missed one of our webinars?
Access archived recordings & slides via the links below. Have an idea for a future webinar, email us at info@ga-institute.com

GRESB in 60 Days: Tech, Tools & Best Practices to Respond in 2017

Why Getting Started with CDP is More Important than Ever in collaboration with CDP

Why 2017 Should Be The Year You Respond to RobecoSAM (DJSI)? in collaboration with RobecoSAM and Nasdaq

G&A Institute Webinar: Moving From G4 to The New GRI Standards

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Governance & Accountability Institute Featured Service
Stakeholder Report Review
Engage and receive important feedback to guide future reporting, materiality and strategy-setting...
More on Stakeholder Report Review

Using The GRI Sustainability Reporting Framework Improves The Quality of ESG Disclosures - Joint Research From G&A Institute and Baruch College Shows

FLASH REPORT: 82% of the S&P 500 Companies Published Corporate Sustainability Reports in 2016

Download G&A's "Sustainability - What Matters" Research Report.
Want even more?
Get All 84 Indicator Rankings By Sector.

Learn More About G&A Research

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GRI'S USA, UK & IRELAND
DATA PARTNER

G&A Institute is the Data Partner for the Global Reporting Initiative's (GRI) in the USA, UK and Republic of Ireland. We identify, receive, collect, analyze, database, and communicate about every report issued in any of the 3 countries. Over the past 6+ years, G&A analyzed 6,000-plus sustainability reports in this pro bono role and databased 100+ important data points for each report. Find out more @ G&A's What's A Data Partner

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Navigating the way to sustainability...
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The Sustainability Highlights eNewsletter is prepared by Governance & Accountability Institute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Governance & Accountability Instiute is the “Sustainability Headquarters™” for clients in the corporate, investment, public and social sectors. Based in New York, G&A is a for-profit consulting organization providing a range of value-added strategies, services and resources related to ESG & sustainability to clients in the corporate and capital markets communities.For G&A's full range of services, click on each of the links below:

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For more information, contact Governance & Accountability Institute, Inc.
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