A Guide to Biodiversity & Nature-based Solutions for Financial Professionals
Investments that Address Systemic Racism and the Wealth Gap
Sustainability Matters “Life’s most persistent and urgent question is: What are you doing for others?” — The Rev. Dr. Martin Luther King Jr. That’s not a question often asked of investors, but as we celebrate Martin Luther King Jr. Day, it’s one worth considering. A lot of work is needed to achieve racial justice in this country. What has been built up for…
3 Steps to Integrating ESG Into 401(k) Plans
Sustainability Matters Adding sustainable funds will take some time, but could improve retirement readiness for many participants. The U.S. Department of Labor has just made it easier for American workers to invest in sustainable funds in their 401(k) plans. The new rule, finalized in November, makes clear that those who run 401(k) plans can consider environmental, social, and corporate governance…
Florida axes BlackRock, but what about their other external managers?
End of Week Notes They are UN-PRI signatories, too More absurdity coming out of Florida this week, as the state’s Chief Financial Officer Jimmy Patronis announced the state treasury will pull about $1.43 billion in long-term fixed-income securities and $600 million in overnight cash investments managed by BlackRock because of the firm’s commitment to sustainable investing. It’s all part of Republican…
ESG in Retirement Plans: 4 takeaways on the final rule
Sustainability Matters Considering ESG factors is consistent with fiduciary duty The U.S. Department of Labor (DOL) finalized a rule last week that will remove barriers, real and perceived, to ESG investing in retirement plans governed under the Employee Retirement Income Security Act of 1974 (ERISA). Called “Prudence and Loyalty In Selecting Plan Investments and Exercising Shareholder Rights,” the new rule replaces…
What the Red Trickle means for ESG
End of Week Notes Why the anti-ESG campaign won’t work The massive Red Wave that threatened to swamp Democrats in the midterm elections turned out to be a trickle made possible by gerrymandering. If I may put my political science cap on for a moment, it never stood to reason that this would be a typical midterm because we are not living…
Sustainable Fund Flows Continue to Show Resilience
End of Week Notes And a must-read on how CRT is morphing into anti-ESG/”woke” capitalism To say this year has been a challenging one for sustainable funds may be an understatement. The growth of sustainable funds’ assets in the U.S. over the past several years occurred in a generally bullish environment in which most sustainable funds outperformed. But this year, both…
Investing in Water May Be Appealing, But Investors Have Few Compelling Choices
Sustainability Matters Here are some water stocks and water funds to consider The case for investing in water is driven by the challenge of providing enough freshwater to meet growing demand against the backdrop of climate change. Global population growth along with improving living standards in developing countries are increasing demand for clean drinking water and for the use of water…
Who’s Behind the Right’s Anti-ESG Campaign?
Sustainability Matters Hint: It’s not end investors, asset managers, or corporations. A New York Times article this week shed some light on who is behind the anti-ESG campaign coming from the political right in the United States. Prominent Republican politicians like former Vice President Mike Pence, Florida Gov. Ron DeSantis, and Sen. Tom Cotton of Arkansas have spoken out against…
Growth Bias Has Hurt Sustainable Equity Funds This Year
Sustainability Matters Energy underweighting is not as big a factor. As the third quarter draws to a close, markets continue to struggle. Equities are in bear market territory. The Morningstar US Market Index is down 23.8% for the year to date (all performance data is through Sept. 27). The Morningstar Global Markets Index is down 24.8%. In addition, bond prices have…