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.

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.

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.

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.

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.

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.

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.

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.

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?

ECO comment: The European Parliament’s push for a green recovery represents continuing political and regulatory trends towards the mitigation of ESG risks.

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.

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.

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.”

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.

ECO comment: Despite concerns of greenwashing, it is encouraging to see steps being taken by senior levels of management in carbon intensive businesses.

ECO comment: Dieselgate 2.0? Mitsubishi Motors is under investigation for diesel vehicles in Germany that may be programmed to cheat on emissions tests.

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.

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.

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.

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?

ECO comment: Voters are more concerned about the environment ahead of this election than at any time in the past.

ECO Comment: Incoming EU regulation clarify investors’ duty to consider ESG factors in their investment decision-making. Are you ahead of the curve?

ECO Comment: Change is coming more quickly than most people think. Is corporate management ahead of the curve, or behind?

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.

ECO Comment: Another corporate example indicating that neglect of environment and stakeholder considerations can potentially result in financial liabilities and poor performance for shareholders

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.

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.

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.

ECO Comment: Another example of Adidas’ long term track record in ESG leadership, which continues to help build brand value and customer loyalty