Survey Results: Global Institutional Investors with US$8.4 Trillion in AUM Confirm The Rising Value of Corporate ESG Principles The FTI Consulting business advisory firm surveyed a set of 130 global institutional investors to gauge the depth and breadth of U.S. assets invested using ESG principles. This group of investors, contacted from May through July 2018, responded that their Assets Under Management totaling US$8.4 trillion was believed to have benefitted by the contribution of extra [corporate] value to a company with a high ESG rating. And an “extremely positive/high ESG rating” might add an extra 22 percent of corporate value, said the survey responders. An earlier survey by the same firm – FTI Consulting – revealed that more than 2,000 large-cap global leaders expressed the same views. There are two factors at work here: there’s greater demand for [qualified] corporate stock by the ESG-conscious investment community; and, the perception that these higher corporate ESG / sustainability performers may be better positioned for the future (yes, they’re more sustainable) and be less likely to encounter regulatory issues and activist activities that could impact reputation and valuation. In the company’s FTI Journal the authors point that while ESG was once “nice to have” (dating back from the introduction of the phrase in corporate and investing circles a decade-and-a-half-ago), today ESG is integral to a company’s planning and strategy-setting in the eyes of the institutional investor. A significant share -- 87% -- told FTI Consulting that an extremely-positive/high rating would add to a company’s worth. The survey results include the specific views on this by country (Japan leads, the G-20 nation responders are in the middle; the USA is 8th in holding those views). FTI released its “Resilience Barometer” report at the World Economic Forum (WEF) Davos meeting, which showed an alignment of understanding in the corporate sector: The leaders of 2,248 large-cap companies across the G-20 held similar views on the value of ESG on company worth. Keep in mind the G-20* account for 90% of GDP and two-thirds of world population, with annual turnover of US$1.6 trillion. (The research for that report was conducted in December 2018.) So, on the part of the asset managers, what are they looking at in terms of the sources of ESG (from the ratings/reporting services for investors)? They responded: Bloomberg’s ESG Data Service; MSCI ESG Research; Sustainalytics Company ESG Reports; ISS (now adding E and S QualityScores to the long-term G/governance score); CDP; the DJSI; RobecoSAM; RepRisk; VigeoEIRIS; and Oekom. Here’s an interesting finding: more than half of the institutional investors claim they don’t know how the third party ratings organizations compile their reports. There’s more detail and charts for you in the Top Story this week. There’s also an interesting development briefly described in the second item up top. * The G-20 international forum consists of the world’s leading sovereign economies (19) and the European Union (28 states today including the United Kingdom). The big economies are there: USA, Germany, Canada, China, Australia, Saudi Arabia; Japan. Smaller economies such as Turkey and Argentina participate. Other key players participating include the World Bank; the IMF; the International Labor Organization; WTO; and, the United Nations. This Week's Top Stories
Global Survey: Injection of ESG Builds Corporate Value (Tuesday - April 02, 2019) Source: FTI Joiurnal - An FTI Consulting survey of global institutional investors managing more than a sum of US$8.4 trillion in assets confirms the rising value of corporate Environmental, Social and Governance principles in their investment... And this is of interest…the details are still forthcoming as we prepared these Highlights: Patagonia refusing to sell vests to some corporate clients that don't 'prioritize the planet' (Friday - April 05, 2019) Source: The Hill - Outdoor retailer Patagonia will no longer sell its corporate logo vests to companies it views as "ecologically damaging," a move that comes as part of the corporation's push to work with organizations that "prioritize the planet. Sustainability: Continuing Forward Momentum! Ten Simple Ways to Make Your Town More Sustainable (Friday - April 05, 2019) Source: Vice - With the Earth's temperature rising at an alarming rate, Hopkins' work has never been more crucial—so I asked him for ten tips on how to make our towns more sustainable. Top Eleven Takeaways from WSJ’s Conference on Business and Sustainability (Monday - April 01, 2019) Source: TriplePundit - In 1996 she co-founded EKOS International, one of the first consultancies integrating sustainability and corporate strategy. Cynthia has worked with major organizations including BNSF, Boeing, Coca-Cola, Dow Jones, Noranda and... UN highlights profound implication of population trends on sustainable development (Tuesday - April 02, 2019) Source: UN - The United Nations is highlighting the important role that population trends play in promoting sustainable development, during the annual Commission on Population and Development, which began at UN Headquarters in New York on... 5 Easy Sustainability Tips, Just in Time for Earth Month (Tuesday - April 02, 2019) Source: Care2.com - Climate change is looking pretty grim—we no longer have the luxury of considering sustainability an “option”. Each and every one of us needs to start pulling our weight and pressuring businesses and governments to make rapid... Young farmers are challenging convention to improve sustainability (Tuesday - April 02, 2019) Source: Popular Science - Sometimes, it’s easy to get lost in the soil. It’s a relationship that people passionate about farming have with the earth, especially this time of year. It infuses their lives, leaving everything else as just background. Do Consumers/Customers Care About Corporate Sustainability? Read on: The Other Sustainability (Wednesday - April 03, 2019) Source: Home Textiles Today - For the first time in two textiles generations, the industry finally has something else to talk about — and sell on — beside thread counts, grams per inch and all the other nonsense that has consumed the business for so very long. Trending: Players Large and Small Leveling Up Sustainable Personal Care (Wednesday - April 03, 2019) Source: Sustainable Brands - At this week’s in-cosmetics trade show in Paris, BASF’s Care Creations™ focuses on trends including responsible living or reliable sun care cosmetics, which are reflecting growing consumer needs and driving the personal care... (Monday - April 01, 2019) Source: Econ Warrior Princess - The advantages of transitioning to simpler garment labels are numerous and far-reaching, the most obvious of which would be to reduce the incidences of shrinkage and white shirts fading to pink (the latter actually inspired this...
Want Sustainable Farming? Look To High-Tech Farms (Monday - April 01, 2019) Source: Forbes - A growing body of research suggests that consumers can help mitigate the impacts of climate change by eating less meat from ruminant animals like beef and lamb. Despite the raging debate about beef’s impacts, the data shows red...
Designing Your Product To Be Sustainable (Thursday - April 04, 2019) Source: Yanko Design - Sustainability and green energy is the call of our times. Whether you choose to believe it not, climate change is happening and is real. But the question remains, what can you, as an individual designer act on to ensure this... The World’s Fashion Buyers Are Sending A Strong Message To Designers About Sustainability (Thursday - April 04, 2019) Source: Quartz - Sustainability is an increasingly important factor in what buyers choose to stock, according to a survey by the consultancy McKinsey & Company and Camera Nazionale della Moda Italiana, Italian fashion’s governing body... Sponsored Message |  | |
ESG Topics & Issues Headlines
Humans Have Caused the Most Dramatic Climate Change in 3 Million Years (Thursday - April 04, 2019) Source: Live Science Headlines From the Corporate Sector
Major victory for environment as Duke Energy ordered to clean up toxic coal ash (Tuesday - April 02, 2019) Source: Think Progress Shell quits major US oil lobby over climate change (Wednesday - April 03, 2019) Source: CNN Alberta Ferretti Is Starting Her “Journey Into Sustainability” With a Little Help From Eco-Age (Monday - April 01, 2019) Source: Vogue Who Should Pay For Corporate Environmental Degradation? (Monday - April 01, 2019) Source: CleanTechnica Tesla Takes Over Norway, 60% Of New Car Sales Are Electric Vehicles (Thursday - April 04, 2019) Source: Interrnational Business Times Judge to SEC and Elon Musk: Put your ‘reasonableness pants on and work this out’ (Friday - April 05, 2019) Source: TechCrunch 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.
| The Drug Enforcement Administration, DEA Education... April 11, 2019 This Week, Celebrate Your Volunteers April 11, 2019 Bridgestone Continues Advancing Sustainability and... April 11, 2019 Walmart Launches New Reusable Bag Campaign; Announ... April 11, 2019 | For more news and content from 3BL Media, click here. |
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