Tag Archives | ESG

Global Sustainable Investment Up 25%

Global Sustainable Investment ReviewThe Global Sustainable Investment Alliance (GSIA) released its biennial Global Sustainable Investment Review 2016, showing that global sustainable investment assets reached $22.89 trillion at the start of 2016, a 25% increase from 2014.

Sustainable investment encompasses the following activities and strategies:

  1. Negative/exclusionary screening,
  2. Positive/best-in-class screening,
  3. Norms-based screening,
  4. Integration of ESG factors,
  5. Sustainability themed investing,
  6. Impact/community investing, and
  7. Corporate engagement and shareholder action.

Yet, many in the mainstream press continue to disparage sustainable investing. This morning, Justin Baer of the Wall Street Journal reported that “interest in so-called environmental, social and governance investing is surging.” (State Street Offers New Tool to Gauge Environmental, Other Social Risks) There is nothing “so-called” about the movement to ESG investing. It is real.

Continue Reading →

Continue Reading · 0

Climate Risk – Walden Moves BlackRock

Walden Moves BlackRock, Thanks to Timothy Smith

Walden Moves BlackRock, Thanks to Timothy Smith

Walden Moves BlackRock: Background

A number of investors, led by Walden moves BlackRock on climate Risk. Walden Asset Management and the Center for Community Change, along with the City of Seattle Employees’ Retirement System and First Affirmative Financial Network, filed a shareholder resolution requesting a review of BlackRock’s proxy voting process and record on climate change.

Following extensive engagement and constructive dialogue between BlackRock, Walden and a number of investors, the shareholder resolution was withdrawn. As a result of the dialogue, BlackRock has updated its website to provide fresh insights into the ways it believes climate change creates risks and opportunities for companies. BlackRock also noted that climate risk will be a priority for their engagement with companies and boards throughout 2017 and 2018. Continue Reading →

Continue Reading · 0

Report from CII Winter Meeting: ESG

CIIEven in Washington, the numbers are impressive. The Council of Institutional Investors, who met in Washington DC this week, represents 23 trillion (with a t) dollars, mostly made up of retirement and other savings of working families. Compare that to the entire budget of the US government, less than two trillion a year. Like most industry group meetings in Washington, this one had presentations on what to expect from Congress and the regulatory agencies and how millennials will change the way the members do business, plus snack breaks and wireless sponsored by firms trying to sell products and services to the attendees. But the a two and a half day session featured repeated agenda topics on climate change and what are called ESG issues, suggesting that pension funds may step in where governments have failed. Continue Reading →

Continue Reading · 0

Anti-Hypocrisy Proposals: Franklin Resources

Anti-Hypocrisy Proposals at Franklin Resources

Support Anti-Hypocrisy Proposals at Franklin Resources

Anti-hypocrisy proposals could be the most important ones of the season. I purchased shares on Franklin Resources (BEN) so that I could file anti-hypocrisy proposals, of the same variety we get to vote on at the February 15, 2017, annual meeting. I had not owned my shares for a year as of the filing deadline last year, so did not submit a proposal. Fortunately, other shareholders have submitted exactly the type of anti-hypocrisy proposals I would have put forward. I will concentrate on the first anti-hypocrisy proposals and will cover the other items only briefly.

Votes at funds, like Franklin Resources, are especially important since the votes these funds cast at annual meetings drive the outcomes. We can’t expect to win important issues like Majority vote provisions to elect directors, requested reports on climate change activities or voting down outrageous pay packages until huge funds like Franklin Resources vote with us. Large commercial funds, such as Franklin Resources, often have a built-in conflict of interest. They want to service corporate clients, so do not want to offend corporate managers. At the same time, as investors in their funds, we want them to monitor management and be critical when that is in our best interest. These resolutions seek better alignment between the interest of investors in funds offered by Franklin Resources and the proxy positions taken by those funds. Continue Reading →

Continue Reading · 0

Looking for Best SRI Funds? Start Here

Best SRI Funds

Best SRI Funds

After making the decision to apply the principles of SRI investing, many clients embark on the initial step of selecting a core stock fund. Traditional investors have literally hundreds of highly efficient core investment solutions. However, SRI investors aren’t so blessed—which is why I put together this core list of Best SRI Funds.

Best SRI funds need to start out by being financially sustainable. Some fund companies seem to believe that they can rake in higher fees on the backs of well meaning investors. The primary objective of a core fund is to match the market with as little cost drag as possible. Continue Reading →

Continue Reading ·

US SIF Comments on DOL Guidance Update

DOLThe Department of Labor (DOL) rescinded Interpretive Bulletin 2008-2 relating to the Exercise of Shareholder Rights and replaced it with Interpretive Bulletin 2016-01 which reinstates the language of Interpretive Bulletin 94-2 with some modifications. US SIF supports this change as IB 2008-2 was not only inconsistent with prior guidance, but may have discouraged ERISA plan fiduciaries from exercising their shareholder rights.

The guidance appropriately notes the positive role fiduciaries play through the exercise of shareholder rights. Additionally, this guidance also reinforces the language of IB 2015-1 on economically targeted investments which clarified that environmental, social and governance (ESG) impacts can be intrinsic to the market value of an investment. Continue Reading →

Continue Reading ·

US SIF Foundation Issues SRI Report

US SIF Foundation 2016 btrends reportUS SIF Foundation Releases 2016 Biennial Report on UA Sustainable, Responsible and Impact Investing Trends. Sustainable, responsible and impact investing (SRI) assets now account for $8.72 trillion, or one in five dollars invested under professional management in the United States according to the US SIF Foundation’s biennial Report on Responsible and Impact Investing Trends 2016, which was released today. Continue Reading →

Continue Reading ·

CalSTRS Seeks ESG Focused PE Managers

esg focused pe managersWEST SACRAMENTO, CA – The California State Teachers’ Retirement System is searching for public equity investment managers with an environmental, social and governance focus. There are up to six new ESG manager spots available for consideration.

This is a great opportunity for ESG focused PE Managers. You will be working with one of the most progressive funds in the entire world. CalSTRS even announces their proxy votes in advance of annual meetings so that others can follow their lead. See job opportunitiesContinue Reading →

Continue Reading ·

The Handbook of Board Governance: Part 7

The Handbook of Board GovernanceI continue my review of The Handbook of Board Governance: A Comprehensive Guide for Public, Private, and Not-for-Profit Board Member. With the current post, I provide comments on Part 7 of the bookGovernance of Sustainability. This is why I got into the field as an NIMH Fellow in the late 1970s studying what forms of corporate governance would be best for corporations AND society. This part of the Handbook is worthy of a separate 100-page book by itself, probably with broader appeal to the general public. Continue Reading →

Continue Reading ·

Positive Impact of SRI Investors

SRI InvestorsSustainable, responsible and impact, SRI investors, have influenced the investment industry, companies, governments and other actors to address environmental, social and governance (ESG) challenges in four major areas, according to The Impact of Sustainable and Responsible Investmenta report released today by the US SIF Foundation.

Influence of SRI Investors

Drawing upon a range of data, surveys and examples, the report focuses on four significant impacts of sustainable, responsible and impact – SRI investors over the past 25 years.  SRI investors have:

  • changed the investment industry, leading to more SRI products and greater access to expert practitioners;
  • improved public companies by stepping up active shareholder ownership and engagement on ESG issues;
  • aided communities and individuals via community investing and other initiatives; and
  • influenced public policy and launched organizations to promote sustainable investment.

Continue Reading →

Continue Reading ·

Walden Wins ESG Reporting at CLARCOR

clarcorCLARCOR Inc. (CLC) hosted its Annual General Meeting on March 29, 2016. A shareholder proposal led by Walden Asset Management for environmental, social and governance (ESG) reporting received 61% support from shareholders, excluding abstentions.

With this result, CLARCOR joins a small minority of companies to ever experience a majority vote in support of on an environmental or social resolution. According to proxy advisor ISS, just one environmental or social proposal passed out of 474 submitted in 2015. Continue Reading →

Continue Reading ·

Franklin Resources: Proxy Score 58

Franklin ResourcesFranklin Resources, Inc. (BEN) is a publicly owned asset management holding company, which includes Franklin Templeton Investments, and is one of the stocks in my portfolio. Their annual meeting is on February 17, 2016. ProxyDemocracy.org had collected the votes of two funds when I checked. I voted against three directors and for the proposal for a report on voting incongruities regarding climate change voting. I voted with the Board’s recommendations 58% of the time. View Proxy Statement.

Franklin Resources: Special Note

This is one of the most important votes of the year because of the vitally important proxy proposal submitted by Zevin Asset Management, along with First Affirmative Financial and Friends Fiduciary Corporate. The proposal asks our company to report on incongruences between the proxy voting practices of Franklin Resources and its stated policy positions on climate change. If they are essentially ‘green-washing,’ this proposal should lead to a change in how they vote. If their proxy votes are already aligned with their policies and public statements, a report will provide an opportunity for good publicity. Continue Reading →

Continue Reading ·

Conference Scholarships For SRI/ESG Investing

Sustainable, Responsible, Impact InvestingAll In For Impact: The 26th Annual SRI Conference will take place November 3–5, 2015 at The Broadmoor, Colorado Springs, CO. I am pleased to announce conference scholarships for SRI/ESG investing are now being made available to students and young professionals.

The SRI Conference is an annual gathering of the responsible investment industry designed to stimulate, inspire, and serve the needs of investment professionals, as well as institutional and high net worth investors who seek to direct investment capital in positive, healthy, transformative ways—toward a truly sustainable future. Continue Reading →

Continue Reading ·

Video Friday: Take Action on Plastic Microbeads

plastic microbeedsI hope those concerned with good corporate governance are also concerned with stewardship. Investors shouldn’t be making money by investing in products that harm the environment. Their are plenty of alternatives to plastic microbeads.

This 2-minute video “explainer” shows how tiny plastic microbeads go down the drain and into our rivers, lakes, and oceans. We can do to stop this ridiculous assault on our public waters.  TAKE ACTION!

Continue Reading →

Continue Reading ·

Powered by WordPress. Designed by WooThemes