Companies 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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