EU agrees announces regulation to curb Big Tech dominance
ECO comment: The EU announces its biggest regulatory move against what it defines as “anti-trust” or anti-competitive behaviour from mega tech companies like Apple and Google. In our Q4 2019 research spotlight we discussed the trouble with ESG-aligned strategies that have a bias towards technology exposure. Find it in the Research section of our website.
read moreSEC proposes mandatory scope 1 and 2 emissions reporting
ECO comment: The regulation would require public companies to disclose their direct greenhouse gas emissions and have them verified by a third party. Commissioners voted to release the proposal for public comment.
read moreAwareness of ESG-related issues and board expectations rise in post Covid-19 world
ECO comment: Following Covid-19 shareholders’ increased awareness of ESG-related issues means rising expectations of boards.
read moreMicrosoft’s board loses “S pillar” vote on shareholder proposal
ECO comment: Microsoft’s board lost a vote on a shareholder proposal for the first time since at least 2000, on a matter relating to “S” pillar practice in ESG. The shareholder proposal called for improved transparency in sexual assault reports and policies within the company. ECO Advisors is pleased to be counted amongst the shareholders who supported the proposal.
read moreGlobal leaders make methane reduction pact at COP26
ECO comment: More than 100 global leaders announce pact to drastically reduce methane emissions by 2030 at COP26. Read more about our take on methane in our Q3 2021 newsletter.
read moreCDP Science-based Targets Campaign 2021 Announcement
We’re proud to support the CDP Science-Based Targets Campaign 2021 – engaging 1,600+ companies, representing 36% of the MSCI World, to set SBTs. 96% of companies said that investor pressure influenced their decision to join the Science Targets.
read moreCurbing methane emissions is essential to the race against 1.5°C
ECO comment: Methane is the newest greenhouse gas that has attracted attention for its powerful heating abilities–80 times more than carbon dioxide. But methane emissions last for a short period of time in the atmosphere, making CH₄ emission reduction one of the most effective ways to fight climate change. Read more about our take on methane in our upcoming Q3 2021 newsletter.
read moreLandmark IPCC report confirms 1.5 °C increase in global temperatures by 2040
ECO comment: Scientists unanimously confirm human-caused climate change, and a 1.5 °C increase in global temperatures is expected by 2040 at the latest in all emissions reduction scenarios. Read more about our take and what it means for investors in our upcoming Q3 2021 newsletter.
read moreProxy season sees a record-breaking fall in shareholder support for executive pay
ECO comment: The 2021 proxy season saw a record-breaking fall in shareholder support for executive pay. 32 S&P 500 companies had more than 40% of shareholders oppose executive pay, a fourfold increase since 2017. ECO Advisors has an in-house executive pay voting policy that guides our decisions. The policy, as well as our other voting policies, is available in the Investor Portal.
read moreThe Green Economy and the Clean Energy Transition are on their way
ECO comment: The energy transition is well underway — a function of public policy, technological advances, and consumer demand. The transition to a net-zero economy will produce a global clean energy market worth $23 trillion, and green jobs are in demand.
read moreIEA Report says that in order to reach net-zero emissions by mid-century, 90% of electricity in 2050 needs to come from renewable sources
ECO comment: The IEA says achieving net-zero emissions by 2050 will require “nothing short of a complete transformation of the global energy system”. This has significant implications, including risks of stranded assets and regulation, and opportunities for investors to get ahead of the curve before old, polluting appliances become more expensive to own and operate.
read moreCost of Polluting Soars as Carbon Price Hits Record €50
ECO comment: The EU carbon price jumps above €50 a tonne for the first time, pushing up the cost of polluting in the bloc to more than double its pre-pandemic level.
read moreU.S. Labor Secretary supports classifying gig workers as employees
ECO comment: President Biden’s labour secretary argues that gig workers should be classified as “employees” who deserve work benefits. We discussed the ESG implications of the gig economy in our Q1 2020 newsletter.
read moreFinancial institutions fail to conduct climate analysis and underestimate the most significant climate-related risks
ECO comment: New CDP report finds that most financial institutions are underestimating the most significant climate-related risks, with a potential financial impact of over $1 trillion USD.
read moreStudy finds that funds that invest in ‘brown’ companies will be hit harder than ‘green’ funds in a climate-related market shock
ECO comment: A new study concludes that ‘green funds’ are better equipped for climate-related market shocks. At ECO Advisors we are net short carbon intensity as part of our ESG philosophy.
read moreCompanies Call on Biden Administration to Act on Climate Change
ECO comment: Major companies from a cross section of the U.S. economy have signed onto a statement urging the Biden administration to enact ambitious climate policies. This statement demonstrates the corporate driving force behind increased ESG focus and regulations, which are expected to expand under the Biden administration.
read moreChina’s weak ESG performance predicted to “limit investment flows”
ECO comment: Since the opening of China’s once closed markets, foreign portfolio investments have poured in. But will this trend collide with the global investor embrace of ESG, given that China has the worst ESG ratings of any major nation?
read moreEuropean Parliament votes to exclude fossil fuels from the EU’s €750bn COVID-19 recovery fund
ECO comment: The European Parliament’s push for a green recovery represents continuing political and regulatory trends towards the mitigation of ESG risks.
read moreOnly 1 in 10 fashion companies show awareness of water pollution across whole value chain
ECO comment: While many companies demonstrate awareness of impacts of climate change, few companies in the fashion industry show awareness that water pollution is a risk across every stage of the apparel value chain.
read moreJD Sports faces second shareholder backlash over executive pay
ECO comment: JD Sports faces backlash from shareholders on executive pay for second year. A recent Hermes EOS report suggests that COVID-19 will increase focus on executive pay and pressure for executives to “share the pain” felt by other stakeholders.
read morePost-Coronavirus sustainability-focused investment is the new normal
ECO comment: the author of this recent article in Forbes provides a concise summary of why ESG factors are likely to become more material for investors. “Going forward, there is the higher probability that markets and investors will focus more on the social costs, the environmental costs, human costs of economic activity.”
read moreJetBlue becomes the first airline to deploy an ESG-linked loan
ECO comment: A great example of how continued ESG innovation in credit markets can support sustainability initiatives, helping to create a virtuous circle for corporates, investors and stakeholders.
read moreBP pledges net zero carbon emissions by 2050
ECO comment: Despite concerns of greenwashing, it is encouraging to see steps being taken by senior levels of management in carbon intensive businesses.
read moreMitsubishi suspected of emissions cheating in Germany
ECO comment: Dieselgate 2.0? Mitsubishi Motors is under investigation for diesel vehicles in Germany that may be programmed to cheat on emissions tests.
read moreDecarbonisation will drive dramatic rise in cement prices
ECO comment: Redburn equity research house has downgraded two major European cement producers, arguing that the industry will face huge costs to decarbonise from the middle of the decade.
read moreMcKinsey report warns against the rising socioeconomic impacts of climate change
ECO comment: A new report from McKinsey Global Institute suggests that climate risks are not fully priced and that the socioeconomic impact will increase between roughly two to 20 times by 2050.
read moreEU Green Taxonomy agreement reached
ECO comment: An agreement has been reached regarding the EU Taxonomy on green investment. The taxonomy is intended to provide standardisation and prevent greenwashing in the industry. It marks an important milestone for the advancement of the Environment pillar.
read moreExxon faces climate change fraud trial
ECO comment: Climate change may be the defining risk for oil and gas companies in coming decades. Exxon Mobil Corp. is now on trial for using two sets of books to hide the true cost of climate change regulations from investors. Do you consider ESG risks in your investment decisions?
read moreEnvironment becoming key battleground for UK general election
ECO comment: Voters are more concerned about the environment ahead of this election than at any time in the past.
read moreEU policymakers reach agreement on investor ESG duties
ECO Comment: Incoming EU regulation clarify investors’ duty to consider ESG factors in their investment decision-making. Are you ahead of the curve?
read moreHonda pushing ahead with EV
ECO Comment: Change is coming more quickly than most people think. Is corporate management ahead of the curve, or behind?
read moreClimate change
ECO Comment: Confirmation that climate change is happening more rapidly than previously predicted and that the necessary adjustments and solutions are already crucial factors for investors to consider.
read morePG&E
ECO Comment: Another corporate example indicating that neglect of environment and stakeholder considerations can potentially result in financial liabilities and poor performance for shareholders
read moreNissan’s Governance Scandal
ECO Comment: The recent scandal provides an excellent case study on how ESG evaluation can help to raise awareness of a heightened corporate risk profile.
read moreESG Investing
ECO Comment: This recent article in The Asset.com highlights increasing interest in ESG amongst investors in Asia. Our view is that ESG investing will rapidly spread from its traditional base in Northern Europe to be an important driver for equity returns on a global basis.
read moreCanada Supreme Court to hear case against Nevsun Resources over alleged forced labour & torture at Eritrea mine in January
ECO Comment: The changing legal and regulatory environment can uncover risks to companies as their liability profile expands in ways that may not have been anticipated by management. We believe that companies that stay one step ahead of these risks will deliver superior long term performance.
read moreAdidas sold 1 million shoes made out of ocean plastic in 2017
ECO Comment: Another example of Adidas’ long term track record in ESG leadership, which continues to help build brand value and customer loyalty
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