Newsletter

Questions We Are Thinking About in the Midst of Major Disruption on Sustainable Investing Trends & Corporate Sustainability Journeys

As the global coronavirus pandemic continues to uproot our normal business, financial, economic and personal pursuits, questions that we could logically ask are (1) what impact does the virus crisis have on the ongoing corporate sustainability / ESG / citizenship efforts; and (2) what is the investor reaction – does the move into more sustainable / ESG investment vehicles continue?

Some answers come from Sanghamitra Saha, of Zack’s, writing in Yahoo Finance – “Here’s Why ESG ETFs Are Hot Amid Pandemic”.

He begins by explaining that ESG investing has remained “hot” since the pre-outbreak period, and as Wall Street recorded its worst quarter overall since Q 2008, ESG ETFs appeared [somewhat] resilient to acute selloffs in Q1 2020. (Read, he says: “ESG ETFs Appear Unscathed by the Coronavirus Carnage”.)

These investment vehicles had US$8 billion-plus inflow in 2019, four times their total 2018 inflow. In the first three months of 2020 the flow into ESG Exchange Traded Funds was $6.7 billion -- pushing total assets in such funds to $19 billion (only a bit less than the total in February 2018).
Several of these ETFs outperformed the S&P 500® and came close to the Nasdaq performance (which has been the hot place for returns in 2020, bouncing close to the 9000 mark as we write this).  What are some of the reasons for such outperformance even during the virus crisis? 

The author shares perspectives from Morningstar and Bloomberg, and presents data on performance on some of the ETFs offered by Nuveen, State Street SPDRs, Vanguard, and iShares MSCI.

We’ve been seeing news and commentary about this trend since the start of the virus crisis as investors seek out what they consider to be more resilient, “safer” companies as packaged in the respective ESG ETFs.  What are public company managements doing to be part of this trend?

Mary Mazzoni, Senior Editor of Triple Pundit and Managing Editor of CR Magazine, shares news from the corporate sector in “Sustainability Isn’t Stopping:  Just Ask These Companies.”  The firms and the stories of their continuing sustainability journeys that she profiles include General Mills, Evian, Ball Corporation, HP, Lee Apparel, Bayer, Arc’Teryx, and Microsoft.

She begins by addressing the comments of business columnist John D. Stoll in The Wall Street Journal…that “several top companies are starting to put the brakes on their ESG programs due to economic strain…”

Pushing back in TriplePundit:  “Right now we’re all understandably consumed with the human suffering and economic strain posed by the pandemic…but we’re not convinced we’ll see a sunsetting of sustainability – and the eight corporate examples are just some of the reasons why…”

The two Top Stories present the two answers to the questions posed up top.  And throughout the collection in this week’s newsletter you’ll see other answers presented in slightly different form.

The good news from the G&A Institute offices is that our corporate clients continue with vigor and strong commitment on their respective sustainability journeys, even as operations are disrupted by the virus crisis. Managers tell us that questions from their investors about sustainability, ESG and related issues continue to increase, and major customers continue to ask questions related to their own supply chain management. 

2020 is a challenging year – and sustainable, resilient companies are stepping up to meet the challenges, setting a welcome pace. 

Top Stories

Here's Why ESG ETFs Are Hot Amid Pandemic
Source: Yahoo Finance - Environmental, social and governance (“ESG”) investing has remained a hot favorite among investors since the pre-outbreak period. Wall Street recorded the worst quarter to start 2020 since the fourth quarter of 2008. But ESG ETFs appeared somewhat resilient to acute selloffs in Q1 (read: ESG ETFs Appear Unscathed by the Coronavirus Carnage).

Sustainability Isn't Stopping: Just Ask These Companies
Source: Triple Pundit - Over the weekend, a sustainability-focused Wall Street Journal article started making the rounds on social media. In it, business columnist John D. Stoll notes that several top companies are starting to pump the brakes on their...

And here’s some additional perspectives on the two questions to mull over:

Seven Ways To Make Business Truly Sustainable Post-COVID
Source: Forbes - We humans are a spectacularly resilient species. Wars, famines, plagues, economic crashes – we dust ourselves off and press on. So we will get beyond COVID-19. But is it too much to hope that, devastating as the virus’s effects...

Can companies still afford to care about sustainability?
Source: FT - Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy....

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.

Titles Matter to Provide Context and Direction – For Corporate Leaders and the Providers of Capital

Confluence: Coronavirus Crisis, Climate Change, Global Warming, Sustainable Investing, Corporate Sustainability & Citizenship…Shaping These Times

Today: Huge Financial Flows as the U.S.A. Aids the Business Community and Workers, Families…How Is the Flow Facilitated?

_________________________________________
G&A RESOURCE PAPERS

About Human Capital Management & Possible Related Disclosures that Might Be Mandated by the Securities & Exchange Commission

State Street Global Advisors (SSGA): The Important of the R-Factor

Climate-Related Corporate Risk Disclosures Resource Guide

Analysis Of The Business Roundtable Companies ESG Reporting Practices Resource Paper

_________________________________________
G&A RESEARCH

FLASH REPORT: 60% of Russell 1000® Are Publishing Sustainability Reports, G&A Institute’s 2018 Inaugural Benchmark Study Shows

FLASH REPORT: 86% of S&P 500 Index® Companies Publish Sustainability / Responsibility Reports in 2018

Learn More About G&A Research

________________________________________

G&A IS THE GRI DATA PARTNER FOR USA, UK & IRELAND

Sustainability Standard Setters & Policy Makers

• Nestlé co-funds new chair to look at sustainable packaging materials (Source: Confectionery News
• Digital, personal, health and climate: Trends born from indie beauty to continue in ‘year filled with uncertainty’ (Source: Cosmetics Design)
• 5 sustainable alternatives to plastics (Source: DW)
• BAFTA-Backed Sustainability Project Launches Green Rider for Actors (Source: Hollywood Reporter)
  

JUMP TO MORE Sustainability Standard Setters & Policy Makers

ESG / Sustainable & Responsible Investment

• Sustainable Opportunities Acquisition Corp. Files $300M SPAC (Source: SPAC Insider) 
• Two Investment Firms Launch Funds Aimed at Tackling Climate and Sustainability Challenges (Source: Environmental Leader) 
• ISS ESG Launches New SDG Impact Rating (Source: ISS) 

JUMP TO MORE ESG / Sustainable & Responsible Investment

Corporate Sustainability / ESG

• Nissan Shows Its Commitment To Sustainable Last-Mile Delivery (Source: Post & Parcel) 
• HP Announces the World’s Most Sustainable PC Portfolio (Source: CSRWire) 
• New report shows key actions utilities can take to accelerate corporate transition to electric vehicles (Source: Ceres) 
• Why a Company’s Health and Wellbeing Program is an Essential Part of Its Long-Term Success (Source: CECP) 

JUMP TO MORE Corporate Sustainability / ESG

From the Agora: Consumers & Sustainability

• Campbell Announces New Sustainable Packaging Goals (Source: Yahoo Finance) 
• Three Ways to Support a Healthy Food System During the COVID-19 Pandemic (Source: EcoWatch) 
• Blue Beauty: Everything You Need To Know About The New Sustainable Beauty Movement (Source: Elle) 

JUMP TO MORE Consumers & Sustainability

Global Sustainability : Forward Momentum!

• Green marketing must be done well to help bottom line (Source: Knox News) 
• COVID-19 Could Galvanize Retailers to Become More Sustainable (Source: Morning Brew) 
• Sustainability and innovation should go hand in hand in the EU (Source: Euractiv) 
• What a sustainable circular economy would look like (Source: The Conversation) 

JUMP TO MORE Global Sustainability : Forward Momentum!

Sustainability Data That Matters

• Using digital twins to design more sustainable cities (Source: Phys) 

JUMP TO MORE Sustainability Data That Matters

The Sustainability Highlights eNewsletter is prepared by Governance & Accountability Institute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Copyrights for other providers are noted where appropriate. Please credit the source if quoted. Content © 2009 - 2020 - All Rights Reserved.

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: Sustainability / ESG Consulting Services, Communications & Recognition Services, Investor Relation Services. For more information, visit www.ga-institute.com or contact us at 646.430.8230 or info@ga-institute.com.