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The State of Sustainable / ESG Investment in 2018: This issue we bring you two important Top Stories that capture the state of sustainable investing from varying points-of-view. We selected these for their value to both corporate managers and investment professionals. Corporate staff can use the findings to “make the case” upward to C-suite and boardroom using both documents. Investors not yet on board with Sustainable / ESG investing can gain valuable insights from both reports. First is the report by Guido Giese and Zoltan Nagy at MSCI – “How Markets Price ESG” – addressing the question “have changes in ESG scores affected market prices?” MSCI examines the changes in companies ESG scores, “ESG momentum”, either strong or negative for the companies being rated. Using the firm’s model, the research showed that markets reacted “most sensitively” to improvements in a public company’s characteristics rather than to declines in ESG performance, among many other takeaways in the full report. The takeaway is that changes in ESG profiles of companies certainly affect company valuations. The change in ESG characteristics showed the strongest move in equity pricing over a one-year horizon compared to shorter or longer time frames. The report contains a well designed, thorough methodology which clearly demonstrates the importance of a public company’s ESG profile. The MSCI score, the authors point out, is a proxy for the ESG-related information that the market is processing. (All MSCI ESG scores are updated at least once a year.) There’s good information for both corporate managers and investment professionals in the 25-page report. The second report is a snapshot of the “State of Integrated and Sustainability Reporting 2018” issued by the Investor Responsibility Research Institute (IRRCI) – Sol Kwon of the Sustainable Investments Institute (Si2) is the author and colleague Heidi Welsh is editor. (IRRCI and Si2 regularly publish research reports together.) The report charts the evolvement of corporate sustainability reporting, which got off to a modest start in the 1980s - on to the 1990s when corporate sustainability reports as we know them today as investors and companies adopted ESG or Triple Bottom Line approaches. Another transition is underway, writes author Kwon, the “value creation” (shared value) which should lead to more holistic reporting of inputs and outputs…the emergence of the integrated report. In 2013, IRRCI had Si2 look at the state of integrated reporting among the S&P 500® companies and examined practices again for this year’s report. (The earlier work focused on what companies were reporting without regard to status as “mandated” or “voluntary” disclosure.) Much progress has been made – for one thing, investor attention on ESG matters is much higher today…making corporate sustainability reporting ripe for the next phase. The details are set out for you in the IRRCI report including trends and examples in use of reporting frameworks (GRI, SASB, IIRC), Quality, Alignment with SDGs, Inclusion of Sustainability in Financial Reports, Investor Engagement / Awareness, Board Oversight, Incentives, and many other important trends – this an important comprehensive read for both corporate managers and investment professionals, with a sweep of developments presented in an easy-to-read format (ex. What drives ESG integration into investment strategy? The drivers are identified and presented in a graphic for you.). Important note for you regarding IRRCI: in 2019 the organization’s intellectual properties will be assumed by the Weinberg Center at the University of Delaware. The center conducts research and holds conferences on corporate governance and related issues and is headed by Charles Elson, one of the most highly-regarded thought leaders on corporate governance in the U.S. This Week's Top Stories Important Study on ESG Momentum by MSCI: State of Integrated and Sustainability Reporting 2018:
Sustainability: Continuing Forward Momentum! Sustainability, something farmers can promote New Technologies Contribute to Livestock Sustainability Arguing the case for certified sustainability zones The Power Of Purpose: Abundance Is The New Sustainability Have we reached the sustainability ‘tipping point’ for data centers? Interpreting the Morningstar Sustainability Rating Changes Class explores ethos of sustainability on Princeton’s campus All financial institutions must disclose sustainability risks and impacts, MEPs agreed Sustainability Understandings of Arctic Shipping Large hydropower dams 'not sustainable' in the developing world US, others make commitments for sustainability at Our Ocean Our Focus This Week on A Range of ESG Topics & Issues � More For You to Think About � What Will Be the Future Impact of These Developments? Commentary: Climate change is scary. 'Rat explosion' is way scarier. The inventor of the web says the internet is broken — but he has a plan to fix it Middle Market CEOs and CFOs See Jump in Pay Turbines Kill So Many Birds They're Effectively an Apex Predator NACD Releases Proxy Season Preparation Toolkit
Headlines From the Corporate Sector - Both Positive & Negative Inside Home Depot’s Sustainability and Energy Strategy Sustainability is no longer a ‘nice-to-have’ for global players And the Headlines of interest… US groups sign up to sustainability standard Amazon’s HQ2? Make That Q for Queens Toyota lifts full-year profit forecast Amazon surprised America with its HQ2 decision: But how will the new offices look? Wells Fargo says internal error caused more home foreclosures than expected Foxconn says it won't staff Wisconsin plant with workers from China
News & Opinion: Asset Managers, Sovereign Wealth Funds, Pension Funds Politicization of CalSTRS hurts returns, harms retirees Two Royals in Their 30s Have Been Given the Keys to a $320 Billion Fund Opinions & Commentary Sustainability and election 2018: Connecting the dots What Wall Street insiders are saying about the mid-term election outcomes A Congress divided: Analysts explain what it means for Wall Street What Do the Election Results Mean for Climate and the Environment? |
G&A Institute Sustainability Update™
________________________________________ _________________________________________ Louis Coppola from G&A Institute Goes In Depth on How to Improve ESG Performance
_________________________________________ Governance & Accountability Institute Research FLASH REPORT: 85% of S&P 500 Index® Companies Publish Sustainability Reports in 2017
Using The GRI Sustainability Reporting Framework Improves The Quality of ESG Disclosures - Joint Research From G&A Institute and Baruch College Shows
________________________________________ GRI'S USA, UK & IRELAND
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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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: For more information, contact Governance & Accountability Institute, Inc. | ||||||||||||||||
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