Month: October 2019

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Where ESG Fails (Institutional Investor)

This article recommends that a shift in focus is needed on the ESG drivers of value creation (i.e. materiality).

Despite countless studies, there has never been conclusive evidence that socially responsible screens deliver alpha. A better model exists, argue Harvard Business School luminaries MichaelPorter, George Serafeim, and Mark Kramer.

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Biggest US index funds oppose most climate proposals in shareholder votes (CNBC)

https://www.cnbc.com/2019/10/08/biggest-us-index-funds-oppose-most-climate-proposals-in-shareholder-votes.html

  • Votes on climate-related shareholder resolutions often take center stage at corporate annual meetings, though seldom draw support from the two top U.S. index fund firms, BlackRock and Vanguard Group.
  • BlackRock and its top rivals have not put forward any proposals of their own since at least 2001, according to research firm FactSet.
  • The top index fund firms say they prefer to address issues they have with portfolio companies, including those related to climate change, in private talks with executives rather than through shareholder votes.