“As of 2 July 2026, the ESG Ratings Regulation (Regulation (EU) 2024/3005, the Regulation) will start to apply. Adopted in November 2024, the Regulation aims to improve the reliability and transparency of ESG ratings used in the European Union.” [COMMENTARY] I suspect that other jurisdictions will also want to regulate ESG raters. However, the US will…

“While certain regulatory frameworks continue to impose constraints, evolving policy guidance increasingly recognizes defense as compatible with social sustainability objectives. Here we explain how investors are responding with structuring solutions to balance their fiduciary duties with emerging opportunities.” [COMMENTARY] It’s interesting to see how governments are trying to influence the ESG discussion around investing in…

“But this year, the companies on Corporate Knights’ Best 50 Corporate Citizens list are reorienting their business models around energy resilience and green opportunities. As the Canadian economy navigates a major transition, these companies are proof that sustainability is one of the keys to boosting your bottom line for the long term.” [COMMENTARY] This annual…

“Now entering our fifth year for this survey, this year’s qualitative phase gathered perspectives and insights from a series of live, in-depth interviews with 25 asset owners from around the world.” [COMMENTARY] This survey provides useful insights into how global institutional asset managers are viewing portfolio management today. Asset Owner Perspectives Survey 2026 Qualitative Insights,…

“As of May 31, 2026, approximately 135 ESG-related proposals have been voted on by public company shareholders, constituting almost 35% of the total shareholder proposals voted on to date this proxy season…In 2026, the average vote in favor of anti-ESG proposals was about 1.7%; such proposals received a median support level of 1.07%.  The average…

“For capital markets and investors, ESG stopped being a narrative a long time ago: ESG drives trade-offs and decision-making. For companies, the valuation gap is real, and the cost of debt gap is real. Capital flows fifteen times faster to ESG leaders than to laggards; now is the time to seize the opportunity.” [COMMENTARY] The writer…

“In recent decades, the average CEO of the largest U.S. company has made around 300 times as much as the median worker…  In 1965, CEOs were paid just 21 times as much as a typical worker.” [COMMENTARY] This study says that one reason for the vast increase in payouts to company executives compared to the…

“In sum, many institutional investors are still feeling their way as they develop their strategy for dealing with whether and how to incorporate ESG and sustainability issues into their investing decisions.” [COMMENTARY] Since it’s JD Supra offering this handbook, it has credibility. Perspectives In ESG And Sustainable Investment: ESG and the Sustainable Economy Handbook, by…

“The problem is that the governance structures in these companies are adolescent at best, ill-equipped to handle their rapid rate of revenue growth, their evolving business models, and their swiftly changing capital structures. I fear these factors will coalesce to make an eventual market downturn even more painful than it would be otherwise.” [COMMENTARY] Years…

“This year, anti-DEI proposals represent the dominant form of DEI-related shareholder activism, while pro-DEI proposals have receded significantly in both volume and voter support.” [COMMENTARY] For many companies, DEI makes sense organizationally and financially. That doesn’t mean it’s required for every company. I sense that, in many companies, the anti-DEI shareholder proposals are political rather…

“There were about 150 faith-based mutual funds and ETFs with nearly $97 billion in assets in Morningstar’s database as of the end of April 2026, smaller than 30 entire fund families.” [COMMENTARY] Ethical and sustainable investing has many of its roots in faith-based investing. Yet, the size of their related markets is significantly different. I’ve often wondered…

“Critics, including law professor Lucian Bebchuk at Harvard University and economist Alex Edmans at London Business School, have argued that tying executive compensation to specific ESG metrics invites executives to game the scheme and may end up exacerbating the agency problem of executive pay.” [COMMENTARY] I disagree with standardizing ESG scores, as I believe the different weights and…

“Investor engagement may become even more critical in an environment that reduces required disclosures to shareholders. Boards and management teams must anticipate the evolving investor response and build proactive strategies that balance regulatory relief with transparency and shareholder expectations.” [COMMENTARY] By trying to reduce corporate reporting tasks, the Trump administration is necessitating that investors engage…

“In the last few years there have been mounting attacks against ‘woke capitalism’ and ESG investing…. Yet, literally thousands of major companies publish annual sustainability and corporate responsibility reports outlining their values, the business case for acting as responsible corporate citizens, and their goals and work on the environment, social issues, and governance.” [COMMENTARY] The…

“Will SpaceX Change The Fiduciary Role Of Corporate Directors?” [COMMENTARY] Even after SpaceX becomes a public company, Elon Musk will have virtually absolute control. He will “own 42.5 percent of the company’s equity and 83.8 percent of the voting control.” When I first entered the investment business in 1969, it was becoming perceived wisdom that …

“Climate-aligned investors are focusing more on private dialogues and corporate transition plans than ESG resolutions.” [COMMENTARY] The success of sustainability, ESG, and climate change resolutions has been low for several years now. So, many in activist communities associated with these issues are finding more success in private discussions with corporate management. Shareholder activists are changing…

“Activist investors want Amazon, Google and Meta to explain how they’ll reconcile power-hungry data centers with their pledges to cut emissions.” [COMMENTARY] Many ethical and sustainable investors are likely asking the same questions and wondering whether their investments in these tech companies still align with their personal values. Shareholders Press Big Tech Over AI Energy…

“Summary of findings from the Future of Responsible Investing Asset Owner Group and broader project, convened by the PRI (United Nations Principles for Responsible Investment).” [COMMENTARY] The UN’s PRI is a premier organization in the global responsible investment industry. What their new report has to say is worth reading. The future of responsible investing, by…

“For many business leaders, ESG reporting can feel less like following a map and more like navigating a maze. There is no shortage of standards, frameworks and disclosure models to choose from.” [COMMENTARY] As each country and region adopts often incompatible regulations and guidelines, it creates difficulties for companies. Investors need to be aware of…

“When Norway’s $2.2 trillion wealth fund — the world’s largest — sells a company’s ⁠shares ⁠over ethical concerns, should it explain why? This seemingly ⁠simple question has become a dilemma for its guardians, the finance minister told Reuters, as a government commission reviews the rules ​that have made the fund a global benchmark for ethical…