E-newsletter of Investing for the Soul September 29, 2016
Top ethical investing news for September 2016
Links may only be valid a limited time Commentaries by Ron Robins
Twitter allows me to cover more--and breaking news--to help you do better!
New research shows IFAs (UK Independent Financial Advisors) see
increase in demand for ethical investments. "Research from
Heartwood Investment Management reveals that one in four (25 per cent)
IFAs have seen an increase in client demand for ethical investing over
the last few years but just two in five (43 per cent) are satisfied with
the current range of ethical investment options on offer.
wonder if the 57% of IFAs who say they are not satisfied with the
current range of ethical investment options truly know what is
available. My guess is that most haven't really researched the field.
Nonetheless, it's great to see that UK IFAs see increasing demand for
Canada's Responsible Investment Week Events, October 17-21, 2016. Details here. This is the third year for this great event and it grows bigger every year!
AMNT: Climate change scores lowest on biggest risks facing (UK pension) schemes. "Trustees believe climate change is the lowest risk for their schemes, according to this year’s Association of Member Nominated Trustees (AMNT) survey. Only 1% of respondents said climate change is a threat in contrast to the 2015 survey where it was ranked as the second top concern with 16% of MNTs calling it their biggest worry.
Despite climate change coming bottom this year, environmental social governance (ESG) implications was the fifth most important concern for MNTs, with 9% calling it their top concern. Importantly, ESG, which is a broad term for many things including climate change, was not an option in last year's survey."
survey question changed between 2015 and 2016 to include ESG. This might
account for some of the differences in responses to the climate change
concerns between those years. The number one concern for the funds was
Investors abandon principles as low interest rates put pressure on returns. "A survey of more than 100 institutional investors found that 60pc believe that environmental, social and corporate governance (ESG) risks justify rejecting an otherwise attractive investment – down from 67pc a year ago."
responses to such questions should be expected to change -- up and down
-- each year, though trending higher over the long-term, which has been
seen over the past several years. Even at 60%, this is a remarkable
improvement from responses to similar surveys some years back.
S&P lays out plans for green bond and ESG market tools.
"Influential ratings agency S&P Global has launched plans for a new tool
to examine the environmental impact of projects or initiatives financed
is a welcome initiative and necessary development. Only time will tell
if they can get it right.
New Study Shows Corporate America Continuing to Invest in Sustainability. "Since its inception, the study, which was first conducted in 2006, 2009, 2012 and now in 2015, has created a five-stage sustainability scale ranging from those companies that do not include sustainability as part of their mission to those who view sustainability as a transformative driver for their business.
The findings demonstrate that the percentage of companies at the high end of the scale has grown from 15% in 2006 to 41% in 2015. However, there has also been a slight increase in those at the lower end of the scale as well, with 21% in 2015 compared to 17% in 2012."
corporate march towards an orientation to sustainability continues to
grow. Soon, with most of the world's major stock exchanges demanding
more detailed ESG reporting, the present 41% will rise significantly
over the coming years.
Results Announced for 2016 Dow Jones Sustainability Indices Review. "The three largest additions and deletions (by free-float market capitalization) to the DJSI World this year include: Additions: Cisco Systems Inc, Royal Dutch Shell PLC, Adobe Systems Inc.. Deletions: Intel Corp*, Samsung Electronics Co Ltd, British American Tobacco PLC."
DJSI is a great list of sustainable companies, focusing on 'best of
sector.' However, the results would be greatly improved if their
analysis incorporated the sustainability of the products and services
with respect to the revenues of the listed companies. The full 2016
results will be published September 12 on their
What Big Data Says About ESG. "ESG factors can be used to identify signals for higher return and reduced downside risk, so long as investors possess the 'necessary sophistication.'"
is fascinating research from a whole new perspective, that of 'data
science.' This is, "Large scale, deep data, and advanced statistical
analysis — allowing researchers to identify what is happening in the
real world as opposed to what should happen according to economic
theory." The study's author is Andreas Hoepner, a data scientist and
professor at UK's Henley Business School professor.
PRI launches A practical guide to ESG integration for equity investing. "To guide investors - both asset owners and investment managers - who are implementing ESG integration techniques in their investment process, this report is the most comprehensive description to date of what ESG-integrated analysis is, and how it works in practice."
appears to be an invaluable guide to ESG investing. By using case
studies, it demonstrates real life practices of ESG integration in
investment analysis utilizing a variety of investment approaches.
Does ESG Boost Returns? "And though there is convincing
evidence that good performance on selected industry-specific materiality
data leads to increased returns, translating those aggregate-level
insights into portfolio-appropriate ideas is not a linear process.
their survey question, "Do you think analyzing ESG factors can boost
returns?" 37% say they include it in any complete analysis and only
15% said "no way." Read the article as the results are
How ETFs Are Incorporating Sustainability. "While the two largest diversified sustainable investment options have been around for a decade, the diversified set now totals 20 funds, with 17 launched in just the past two years, nine of them so far in 2016, reflecting growing demand for sustainable investment products as well as more general investor interest in passive portfolios."
informative article from Jon Hale at Morningstar. It will interest most
The Resilient Investor: A Plan for Your Life, Not Just Your Money,
by Hal Brill, Michael Kramer, Christopher Peck with Jim Cummings,
Berrett-Koehler Publishers 2015
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Disclaimer: Neither The Soul Investor nor Ron Robins make investment recommendations. Nothing in this newsletter should be interpreted as a recommendation or solicitation to buy/sell any securities or investments. The Soul Investor is a source of general information and resources for spiritual investing, ethical investing, and socially responsible investing (SRI). Investors should consider their actions thoroughly and consult their professional advisers prior to taking any investment action. The Soul Investor does not necessarily agree with the opinions expressed in articles in its newsletter or offered on the web pages to which it might be linked. Such opinions are the responsibility of the writers themselves. Furthermore, The Soul Investor does not offer or provide any warranties, representations, guarantees, implied or otherwise, as to the accuracy, legality, copyright compliance, timeliness or usefulness of the information, materials or services in this e-newsletter, or other sites, to which it might be linked. Also, Mr. Ron Robins is not an investment advisor, nor is he licensed with any professional investment related body, and thus is not able to, nor does he make, any investment recommendations.
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