Sea Change for Public Sector Pension Funds And Other U.S. Fiduciaries US DOL Green Lights ESG Investing On an important societal issue (think of civil rights, or immigration, or highway construction funding, or criminal justice, or environmental protection) the U.S. Congress deliberates and passes the laws (Federal statutes), the President of the United States of America signs them into law, then an agency is directed to develop the “rules of the road” for those affected by or having to comply with the law. A lot can happen along the way to short-term enactment and long-term enforcement. Industry opponents may work to water down and dilute the effectiveness of the new law (attacking the regulations that are in development, say by the Securities & Exchange Commission for securities laws in the case of Dodd-Frank, or rule making by FDIC for banking industry regulations under Dodd-Frank). Once the law is in place, and there are rules-of-the-road, there are actions that the Executive branch can take to further enforce or interpret the law and its intentions. These include Executive Orders coming forth from the White House (221 to date over seven years for President Barack Obama). Or, the executive branch cabinet agencies can issue interpretations for regulated parties to follow. This just happened – the U.S. Department of Labor, the enforcer of ERISA (The Employee Retirement I Income Security Act of 1974) for fiduciaries, reversed a prior “interpretation” of the law and related regulations. This move could encourage more managers of other peoples’ money – in public sector retirement systems (the 100 largest have more than with US$3.5 trillion in assets under management), asset management firms, foundations, institutional endowments, mutual funds, family trusts, and other pools of investments, to seriously consider corporate ESG performance in their portfolio management. The Top Story in our newsletter this week is about recent actions taken by the U.S. Department of Labor (“DOL,” a cabinet department reporting to the President), and the potential impact of the department’s guidance on sustainable investing. In brief, “permission” is granted now to a wide range of U.S. fiduciaries to consider ESG factors in addition to the traditional financial considerations for portfolio investments. Over the years since 1974 as passage of ERISA, there have been a number of interpretations of the law by the DOL, including the role and duties of the fiduciary. As the George W. Bush Administration, a 2008 DOL interpretation was considered by capital market players to have the effect of chilling interest and discouraging such approaches to portfolio management. The new guidance specifically mentions consideration of corporate ESG as an acceptable means of analysis and a basis of serious consideration for portfolio investment. The Federal government is catching up with important trends in the capital markets – fiduciaries and their advisors have been embracing ESG investing in greater numbers in recent years. After the 2008 market crash, we could say that sustainable investing is a flight to safety for fiduciaries. The background of all this and the specifics of the new guidance for fiduciaries is spelled out for you in the G&A Institute commentary on our company blog. It is worth a read – the ripple effects throughout the fiduciary community in the USA could be very impactful. G&A Can Help -- We've structured a variety of services and tools built to help corporations and their investor relations departments position their companies for access to these pools of capital now flowing towards organizations with better ESG profiles. We can help you to examine your existing investor base, engage and attract new sustainable (long-term stable) investors, and enhance the ESG profile of your organization. Please contact lcoppola@ga-institute.com for more information on how we can help your organization benefit from this and other trends that we are monitoring at the Institute. Top Stories of the Week Big News Out of the U.S. Department of Labor For Fiduciaries — Opportunity to Utilize ESG Factors in Investment Analysis and Portfolio Management
by Hank Boerner – G&A Institute Chairman
Back in the late-1960s and early 1970s, as allegations of older worker retirement abuses gained wide media attention, members of the U.S. Congress focused on “retirement security” issues. After high-profile committee hearings, the Congress passed the Employee Retirement Income Security Act of 1974, signed into law by our 40th CEO, President Gerald Ford. The U.S. Department of Labor was assigned to develop and oversee the operating rules-of-the road for retirement plan fiduciaries — including public employee pension systems; corporate retirement plans; endowments; foundations; trusts. Goldman Sachs: 'If You Ignore Sustainability, You're Going To Be Worth Less'
(Thursday - November 12, 2015)
Source: Forbes - “As a company, if you ignore sustainability, you’re going to be worth less,” Tim Freshwater told a conference in Guilin, southwest China, explaining that data related to environmental, social and governance (ESG) is becoming a...
Sustainability in Focus
Are you sustainable? Should you be?
(Monday - November 09, 2015)
Source: Supply Chain Management Review - Research from West Monroe Partners finds that half of North American supply chain executives consider green supply chain a strategic priority. Sustainable operating strategies
(Monday - November 09, 2015)
Source: NewsDay - MANY regard adoption of sustainability strategies as a non-event based on the belief that there are no certainties in business that social and environmental activists claim to exist. Certainties in life include issues such as... Trade-offs in the Adoption of Sustainability Standards
(Tuesday - November 10, 2015)
Source: Huff Post - How sustainable is sustainability? Some people might ask this question ironically, drawing attention to the lack of a standard definition of a word. It can mean quite different things to different people in different industry... What’s the Deal with Global Sustainability?
(Tuesday - November 10, 2015)
Source: The Market Mogul - With the world changing at a pace never seen before, with climate change hot on our heels, polarization of labor markets, technology evolving every month or year, the issue of global sustainability is becoming ever more pressing.... S&P DJI launches Dow Jones Sustainability Europe Diversified High Beta High Dividend Index
(Tuesday - November 10, 2015)
Source: Hedge Week - &P Dow Jones Indices launches the Dow Jones Sustainability Europe Diversified High Beta High Dividend Index which is designed to measure high income liquid stocks with high historical beta within the Dow Jones Sustainability...
Sustainability focus can benefit reinsurers
(Tuesday - November 10, 2015)
Source: The Royal Gazette - The insurance and reinsurance industry should put sustainable development at the heart of their business philosophy, a conference tomorrow is due to hear. Study identifies sustainability disconnect between consumers and executives
(Wednesday - November 11, 2015)
Source: Modern Materials Handling - Consumers ready to 5% more for online orders if delivered sustainably, 76% would wait an extra day for climate-friendly transport. How to Integrate Sustainability into Marketing Communications
(Wednesday - November 11, 2015)
Source: Triple Pundit - Nowadays, incorporating sustainability into your communications plan is a fundamental part of a company’s success. In fact, consumers around the world are more likely to be loyal to a company that incorporates sustainable...
U.S. Millennials More Committed To Sustainability: Cox Enterprises Report
(Wednesday - November 11, 2015)
Source: Just Means - Overall, this generation is more committed to increasing sustainability, with nearly 60 percent focused to increasing sustainable activities in their businesses, which is significantly higher than the 49 percent of Baby Boomers,... Sustainability leading businesses revealed
(Wednesday - November 11, 2015)
Source: Stuff.com.nz - Two thirds of New Zealanders can't name a brand or company they think is leading the way in sustainable goods or services, new research shows.
Op-Ed | Build Sustainability Into Your Business From Day One
(Thursday - November 12, 2015)
Source: Businesss of Fashion — Sustainability starts will transparency. It comes from being willing to ask questions and dig — to start to understand what your impacts are in your supply chain. The Intersection of Cognitive Computing and Sustainability
(Thursday - November 12, 2015) Associated Profiles : CSRwire
Source: CSR Wire - On the 11 th of May 1997, in New York City, life as he knew it changed for world chess champion Garry Kasparov. For the first time in history, a machine, a super computer named Deep Blue that was developed by IBM,... Investors Want More From Sustainability Reporting, Says Former SEC Head
(Friday - November 13, 2015)
Source: Wall Street Journal - About 75% of the S&P 500 produced sustainability reports in 2015, up from 20% in 2011, according to the Governance & Accountability Institute. But investors who want to use the information say the information they are getting is... Global Urban Sustainability Trend Reaches Israeli Cities
(Friday - November 13, 2015)
Source: Haaretz - After Seoul and Amsterdam, an urban sustainability project in Israel aims to encourage shared use of various resources, starting carpools and baby toys. Should we abandon the language of sustainability?
(Friday - November 13, 2015)
Source: Green Biz - Talking "sustainability" is not easy, is it? Recently, while sitting at a table of Wyoming cattle ranchers, set to give a speech, a rancher’s 10-year-old son looked at me with all his innocence and asked: "What is sustainable...
Finding Guidance From Aquinas on Modern Sustainability
(Friday - November 13, 2015)
Source: St. Thomas.edu - What about the bigger picture? Beyond self-preservation for us and future generations, why is the Earth so important? Those are the questions sophomore Patrick Fisher examined last spring semester as he used a St. Thomas... Eye on Agriculture: Sustainability in Farming
(Friday - November 13, 2015)
Source: KXNET - "As an economist, we have a bit different view of sustainability. Mine is economic sustainability or viability which is: can I stay in business and keep going." ESG Issues & Players Greenhouse gases hit new milestone, fueling worries about climate change
(Monday - November 09, 2015)
Source: Washington Post - Greenhouse gases in the Earth’s atmosphere reached another grim milestone earlier this year as carbon dioxide levels surpassed the symbolic threshold of 400 parts per million across much of the planet, the premier global... Did ExxonMobil commit securities fraud by denying climate change?
(Tuesday - November 10, 2015)
Source: CS Monitor - New York State’s attorney general, Eric Schneiderman, and US Rep. Ted Lieu (D) of California are both looking into whether the world’s largest publicly traded oil and gas company intentionally misled the public and company... Is corporate social responsibility part of your recruiting emphasis?
(Tuesday - November 10, 2015)
Source: HR Morning - As companies have become more aware of creating and promoting their CSR initiatives, candidates have become more socially selective throughout their job hunt. Candidates place heavy emphasis on an organization’s reputation and... These Charts Show the Bright Future Ahead for Clean Energy
(Friday - November 13, 2015)
Source: Mother Jones - With high-stakes climate negotiations just around the corner, things are looking rosy for the producers and sellers of wind turbines and solar panels. Asset Managers, US Pension Funds,
Sovereign Wealth Funds Norway Wealth Fund Was Hammered by Asian Equities
(Friday - November 13, 2015) Associated Profiles : National Social Security Fund (SPF)
Source: swfinstitute.org - Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), had a rough third quarter, posting a portfolio loss of -4.9%. Listed equities contributed a -8.6% return for the quarter...
The Inflation & Deflation Mystery
(Thursday - November 12, 2015)
Source: Value Walk - The confusion about the causes of inflation remain. Today there are as many discussions about deflation as there are inflation. Each side recommends actions which they think appropriate. The Fed has exercised two QEs and one... Wall Street Meets Climate Change With Fossil-Free Exchange-Traded Fund
(Friday - November 13, 2015) Associated Profiles : California State Teachers’ Retirement System
Source: International Business Times - Last month, California Gov. Jerry Brown signed a law requiring the state's two largest pension funds, Calpers and CalSTRS, to sell their investments in about two dozen thermal coal mining companies.... Watching the Watchers Green America (Co-Op America) Headquarters: Washington, DC
Established: 1982, original name was Co-op America (some may still refer to it by that name) ESG/Sustainability Focus: A focus on changing behavior to promote greater sustainability. Tagline on Web site: “Growing the Green Economy For People and the Planet” KEY PARTNERS: Social Investment Forum (SIF), Clean Edge, Global Exchange OVERVIEW/MISSION
Green America states: “Our mission is to harness economic power—the strength of consumers, investors, businesses, and the marketplace—to create a socially just and environmentally sustainable society.” Green America stresses that its concept of “green” encompasses social, economic, and environmental questions. News Sweeps - Greens Go After ExxonMobil for Expressing Opinions on Climate Change
(Friday - November 13, 2015 - Acton Institute Power Blog) - Pioneer Millworks Ranked for Second Time as Top 100 Company
(Saturday - November 07, 2015 - IT Business Net) - Experience 3 Days of Fun at the Los Angeles Green Festival!
(Tuesday - October 27, 2015 - womensradio.com)
These feeds are provided for Accountability-Central in partnership with 3BL Media. 3BL Media distributes press releases, blogs, videos, podcasts, reports, newsletters and more to the growing audience of stakeholders interested in Corporate Social Responsibility (CSR) and Sustainability. Visit 3BLMedia.com for more.
| Domtar Continues to Reduce its Waste and Divert ..
November 19, 2015
Why Do Some Companies Revise their Carbon ...
November 19, 2015
Holiday Giving Made Simple: A Checklist
November 19, 2015
Two Ways to Solve Your Sustainability Business ...
November 19, 2015 | | For more news and content from 3BL Media, click here. |
|
| Check It Out...
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. Recent posts: Reporting 2025 – Perspectives: Interview with Ben Pratt, Vice President Corporate Public Affairs, Mosaic Company Good Advice for Corporate Boards on Sustainability From Bob Eccles – Prominent Harvard Business School Voice Reporting 2025 – Perspectives: Interview withLuca Crisciotti, CEO, DNV GL – Business Assurance _______________________________
Governance & Accountability Institute Service Highlight
Many Reasons to Contact
G&A Institute! Is this one yours?
G&A's Stakeholder Identification, Monitoring & Engagement
Identifying, prioritizing, monitoring, and understanding the third parties and stakeholders watching your company…shaping the issues…influencing outcomes…creating risk and opportunity…and perhaps impacting license to operate. Learn more About G&A's Stakeholder Identification, Monitoring & Engagement _______________________________
Governance & Accountability Institute Research Reports
Learn More @ G&A! _______________________________ Sustainability & Corporate Responsibility Reporting G&A Institute is the Global Reporting
Initiative's (GRI) sole data partner for the United States of America, the United Kingdom, and the Republic of Ireland. As the data partner we monitor, analyze and database information on all Sustainability reports issued in these territories. For a list of recently issued Sustainability reports please follow the links below:
 _______________________________ 
Navigating the way to sustainability...
Contents © 2009 - 2015 | All Rights Reserved
Copyrights for other providers are noted where appropriate. Please credit the source if quoted.
_______________________________ |
