Sustainable Investment

Institutional investors act when they hear how companies will create value over the long-term. In a new study, The Economic Significance of Long-Term Plans published by KKS Advisors and CECP’s Strategic Investors Initiative (SII), an abnormal change in market returns and an increase in trade volume is observed after that company’s CEO presented a long-term plan to institutional investors. This is the first time the reaction to a CEO-presented long-term plan has been quantified and is early evidence that the audience of institutional investors find the information in these presentations decision-relevant.

Getting SMEs to participate in sustainability reporting is a challenge. The Global Reporting Initiative and the Swiss government embarked on an experiment to addresses this challenge in Ghana. By helping SMEs in Ghana to report for the first time, the experience showed that sustainability reporting can lead to clear business benefits for smaller companies in developing countries.

GRI and CDP have released a linkage document between the updated GRI Water and Effluents standard and the CDP Water Questionnaire that helps companies report on their water related impacts.

Once again, it’s BlackRock CEO Larry Fink who has appeared as the socially responsible investment oracle. Almost a year after his “paradigm shifting” letter--a call for social purpose in the 4,000+ companies in which the $6.3 trillion fund invests--Fink has issued a definitive follow-up statement on the subject.

We may be heading into the cold, dark days of winter, but my inbox has been glowing red-hot with a blast of news about sustainable finance. Updates are coming from every area of the category, from giant global entities to funds offering niche investment products, and services aimed at millennials and women.

Today, American Express, the National Trust for Historic Preservation and Main Street America announced the winners of the 2018 Partners in Preservation: Main Streets campaign. The 11 winning historic sites will receive a total of $1.6 million in grants to fund their respective preservation projects. At the outset of the campaign, an additional $400,000 was allocated to the 20 Main Street communities that participated in the program to increase public awareness of the importance of these historic places and build grassroots support for the participating Main Street districts.

The Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD) has developed recommendations that help companies disclose climate-related risks and opportunities in their financial filings and help investors make better-informed decisions. Now, TCFD is asking for companies with publicly-listed debt or equity and financial institutions to sign on in support of the effort. GRI encourages companies to join the momentum.

Wells Fargo & Company (NYSE: WFC) today announced $6 million in neighborhood revitalization grants to 50 nonprofits through the Wells Fargo Housing Foundation 2018 Priority Markets Program.

“These 50 nonprofits share our focus of strengthening communities through local neighborhood revitalization efforts in support of sustainable housing,” said Martin Sundquist, executive director of the Wells Fargo Housing Foundation. “The impact of each dollar invested through this program will be magnified by enabling nonprofits to combine funding with other community grants as the catalyst for their neighborhood revitalization work, serving as a powerful example of the positive impact that can be achieved with thoughtful public-private collaboration.”

Luke Davies was instrumental in the creation and launch of the Green Deposit, a first-to-market commercial product to help Barclays transition to a low-carbon economy. This pioneering and innovative corporate banking solution is a first for Barclays and the market.

Stock exchanges have a key role in driving sustainability reporting, which is a crucial element of corporate transparency and responsible business practices. The recently released World Federation of Exchanges updated ESG guidance has now been mapped against the GRI Standards, helping to increase the comparability of ESG data.