Net Zero Asset Managers initiative invites stakeholder questions
The Bottom Line: Net Zero Asset Managers initiative supports the carbon transition, but managers’ actions will have an impact on portfolio structures, investments and outcomes. Net Zero Asset Managers (NZAM) initiative has attracted 220 signatories with $57 trillion in assets under management Ahead of the conclusion on November 13, 2021 of the Glasgow Climate Pact […]
FSOC report addresses financial risks due to climate change
The bottom line: FSOC report acknowledges threat of climate change to financial stability and promulgates recommendations that should be beneficial to asset owners and investors. FSOC report issued last week, which recognizes the emerging threat of climate change, sets out specific recommendations on risk measurement, quantification and disclosures On October 21st the Financial Stability Oversight […]
Engine No.1 launches VOTE ETF to reproduce Exxon Mobil proxy strategies
The Bottom Line: Engine No. 1 launched an exchange traded fund focused on proxy voting strategies but passively managed securities will not be ESG qualified. Engine No.1 set to launch VOTE ETF to reproduce Exxon Mobil proxy strategies Capitalizing on its newfound notoriety, Engine No. 1 launched on June 23rd an exchange traded fund with […]
Legislation introduced to promote sustainable investing in retirement accounts
The Bottom Line: Clarifying US Senate and House legislation may not actually lead to the accelerated adoption of sustainable investment options in certain retirement plans. Clarifying US Senate and House legislation may not actually lead to the accelerated adoption of sustainable investment options in qualified employer-sponsored plans in the near-to-intermediate term To stimulate the […]
OneFund allows investors to express views on proxy voting
The Bottom Line: OneFund allows underlying investors to express views on proxy voting whereas otherwise investors don’t such rights through mutual funds and ETF ownership. Summary/Background In late May a number of the world’s largest investment management firms and asset owners sided with an environmental activist hedge fund and the leading proxy voting firms to […]
S&P Global Ratings to issue ESG credit-related indicators
The Bottom Line: S&P Global Ratings becomes the third credit rating agency to issue ESG credit indicators intended to inform the CRA’s assessment of creditworthiness. S&P Global Ratings becomes third credit rating agency to issue ESG credit-related indicators S&P Global Ratings became the third credit rating agency (CRA), after Fitch Ratings and Moody’s Investors, to […]
SEC Issues ESG Risk Alert
The Bottom Line: The SEC’s Division of Examinations (DE) issued an advisory Risk Alert highlighting observations from recent exams focusing on ESG products and services. Confusion in the Marketplace On April 9th, the Securities and Exchange Commission’s Division of Examinations (DE) issued an advisory Risk Alert for the purpose of highlighting observations from recent exams […]
The “GameStop Incident” and Why Sustainable Investment Funds May Be at Greater Risk
The Bottom Line: A parallel exists between recent GameStop volatility, a stock’s vulnerability to social media actions and the potential exposure of sustainable investment funds. Introduction and Summary A convergence of factors recently empowered a group of retail traders to fuel stock market volatility and disrupt trading in some U.S. listed stocks. Extraordinary price volatility […]