Active ownership entails an active dialogue between an investor and investee company to change corporate strategy or improve sustainability performance. The goal is to enhance and preserve investment value. Studies show that successful ESG engagements generate abnormal returns and improve board diversity and gender equality. Active ownership through engagement is an effective method to create both financial value and sustainability impact. Engagement fits within the responsible investing universe as a way to directly influence companies beyond screening or thematic investing approaches.
ESG Engagement Insights, a presentation by Nawar Alsaadi of best engagement practices of 30 asset managers, owners, pension funds, and non-profits around the world. (The work is derived from BlackRock & Ceres’ paper entitled Engagement in the 21st Century).
An introduction to ESG (Environmental, Social and Governance) Investing from Artifex Financial Group, a leader in ESG portfolio research and management.
ESG integration in Equities and Fixed IncomeNawar Alsaadi
ESG Integration Case Studies, a presentation by Nawar Alsaadi of more than 30 ESG integration case studies (Equities and Fixed Income) by a host of asset managers and asset owners around the world. (The work is derived from a CFA Institute and UN-PRI paper entitled Guidance and Case Studies for ESG Integration: Equities and Fixed Income).
These slides discusses on the environmental, social and governance (ESG) factors for responsible investment. It briefly covers the ongoing crisis our world economy is dealing with today, which adversely affects business owners and investors alike.
Environmental, Social and Governance (ESG) investing is bringing a new lens to the world of traditional investment management. ESG is increasingly becoming a key decision criterion within the institutional and retail channels as investors seek to ensure that their investments align with their values. In this webinar, we will provide a unique understanding of distribution trends driven by ESG criteria vital to product development and sales strategies for Asset Managers.
Broadridge has partnered with MSCI ESG Research to provide Asset Managers with access to ESG factors for funds. On this webinar, we will provide a detailed overview of ESG investment trends as well as present an overview of a unique set of data that provides ESG transparency on more than 27,000 funds.
ESG Engagement Insights, a presentation by Nawar Alsaadi of best engagement practices of 30 asset managers, owners, pension funds, and non-profits around the world. (The work is derived from BlackRock & Ceres’ paper entitled Engagement in the 21st Century).
An introduction to ESG (Environmental, Social and Governance) Investing from Artifex Financial Group, a leader in ESG portfolio research and management.
ESG integration in Equities and Fixed IncomeNawar Alsaadi
ESG Integration Case Studies, a presentation by Nawar Alsaadi of more than 30 ESG integration case studies (Equities and Fixed Income) by a host of asset managers and asset owners around the world. (The work is derived from a CFA Institute and UN-PRI paper entitled Guidance and Case Studies for ESG Integration: Equities and Fixed Income).
These slides discusses on the environmental, social and governance (ESG) factors for responsible investment. It briefly covers the ongoing crisis our world economy is dealing with today, which adversely affects business owners and investors alike.
Environmental, Social and Governance (ESG) investing is bringing a new lens to the world of traditional investment management. ESG is increasingly becoming a key decision criterion within the institutional and retail channels as investors seek to ensure that their investments align with their values. In this webinar, we will provide a unique understanding of distribution trends driven by ESG criteria vital to product development and sales strategies for Asset Managers.
Broadridge has partnered with MSCI ESG Research to provide Asset Managers with access to ESG factors for funds. On this webinar, we will provide a detailed overview of ESG investment trends as well as present an overview of a unique set of data that provides ESG transparency on more than 27,000 funds.
This Research Spotlight provides a summary of the academic literature on environmental, social, and governance (ESG) activities including:
• The relation between ESG activities and firm value
• The impact of environmental and social engagements on firm performance
• The market reaction to ESG events
• The relation between ESG and agency problems
• The performance of socially responsible investment (SRI) funds
This Research Spotlight expands upon issues introduced in the Quick Guide “Investors and Activism”.
Presentation by Vittorio Lusvarghi, chair of the Professional Accountants in Business Committee Sustainability Task Force, at the Institute of Cost Accountants of India's National Cost Convention, New Delhi, India, March 2012.
NL:
ESG Routekaart.
De dwingende uitdaging waarvoor wij staan op het gebied van milieu is, om met zijn allen de beweging in gang te zetten om de gemiddelde opwarming van de aarde tot 1,5 graden te beperken. Sommige belanghebbenden, gouvernementele organisaties en banken, vragen regelmatig om verbetering en het aanscherpen van de Europese wetgeving met betrekking tot het klimaat. De EU zou tegen 2050 een totale reductie van de binnenlandse emissies van 80% moeten realiseren. Door een eenduidig stappenplan te borgen, is een concrete stap naar verduurzamen. Denk daarbij aan de interne- en externe belanghebbenden te betrekken voor de implementatie van initiatieven om CO2-emissies te verminderen, of een stap verder zou zijn, om de emissies te compenseren. De Routekaart beschrijft aan de hand van analyses, en sector specifieke KPI’s, modellen hoe dit beleid goed zou kunnen worden geborgd in een Environmental Socio-Economic Governance beleid. De Routekaart biedt op de lange termijn een kosten efficiënt pad naar een schonere, klimaatvriendelijke bedrijf.
Short biography of the presenter; Ginio Franker, September 1966, Suriname.
Position Learning and Development NLP-trainer & Transpersoonlijke coach + Climate Leader trained by Al Gore. "A Moral Call to Climate Change" + "Environmental Justice".
Website www.greandream.com.
EN:
ESG-ROADMAP
With the effects of climate change already upon us, the need to cut global greenhouse gas emissions is nothing less than urgent. It’s a daunting challenge, but the technologies and strategies to meet it exist today. A small set of ESG policies, designed and implemented well, can put us on the path to a low carbon future. ESG Key Performance Indicators are complex, so they must be sector specific, focused and cost-effective. One-size-fits-all approaches simply won’t get the job done. Sustainability managers need a clear, comprehensive resource that outlines the ESG policies that will have the biggest impact on our climate future, and describes how to implement these policies well within their own organisations.
We don’t need to wait for new technologies or strategies to create a low carbon future—and we can’t afford to. ESG-ROADMAP gives professionals the tools they need to select, design, and implement the policies that can put us on the path to a livable climate future.
The Environmental Social Governance challenges e.g: on regulatory and reputational risks, market scandals and new market opportunities makes ESG information a data source of growing importance. With ESG in company seminars, round table discussions, scholarships and online association programs, we leave no one behind. Sign up today. Zentrepreneur Environmental Social Governance Associates Training. (ZESGA).
contact@esgwatch.eu
+32485773608 BE
+31630092220 NL
What is socially responsible investment?dean771100
Socially Responsible Investments
Socially responsible investing is one of several similar approaches and concepts that impact how asset managers invest, in a socially responsible way. SRI's have been around for over 30 years in one form or another, and take the desire to make money and use it to create a better world. Companies which generate positive, measurable social and environmental change alongside a financial return. Keep in mind that it is a developing niche and therefore not without hiccups.
ESG investing leads to sustainability and ethical business practices but does ESG investing work when you want to make money? While this way to invest is a positive social force, does ESG investing work to increase your investment assets? Or is it a way to give to charitable causes while being disguised as a way to invest? Will you make money investing this way or would you do better simply giving your money to a cause that you support?
https://youtu.be/YXdOIB5uV_8
By David F. Larcker, Brian Tayan, Dottie Schindlinger and Anne Kors, CGRI Survey Series. Corporate Governance Research Initiative, Stanford Rock Center for Corporate Governance and the Diligent Institute, November 2019
New research from the Rock Center for Corporate Governance at Stanford University and the Diligent Institute finds that corporate directors are not as shareholder-centric as commonly believed and that companies do not put the needs of shareholders significantly above the needs of their employees or society at large. Instead, directors pay considerable attention to important stakeholders—particularly their workforce—and take the interests of these groups into account as part of their long-term business planning.
• While directors are largely satisfied with their ESG-related efforts, they do not believe the outside world understands or appreciates the work they do.
• Directors recognize that tensions exist between shareholder and stakeholder interests. That said,
most believe their companies successfully balance this tension.
• In general, directors reject the view that their companies have a short-term investment horizon in
running their businesses.
In the summer of 2019, the Diligent Institute and the Rock Center for Corporate Governance at Stanford University surveyed nearly 200 directors of public and private corporations globally to better understand how they balance shareholder and stakeholder needs.
Political risk, ESG and market performance - March 2014Damian Karmelich
As the ASX releases new corporate governance guidelines with an increased focus on risk management and environmental, social and governance principles Political Monitor examines the link between ESG, political risk & market performance.
Balanced Rock Investment Advisors educational presentation on alternative investment strategies that reflect personal values.
Presented @ Brookline Library - 10.15.2015
What is an ESG Audit?
Environmental, social and governance (ESG) risks are inevitable for every business. But how these issues are collected, managed and reported are what will make the difference between a company that is prepared or not.
Socially Responsible Investing - Keynote - "State of the Union"MarkDonohue
In June 2010, Mark was asked to present a one-hour keynote on the state of research into socially responsible investing. This was presented in NYC to a large group organized by Steve Scheuth and his SRI in the Rockies / First Affirmative Financial organizations.
What is the global reporting initiative?dean771100
What is the Global Reporting Initiative?
The GRI is a global standard for sustainability reporting designed by organizations and investors to measure business performance. The GRI has been adopted as a requirement by leading institutional investors, government regulators and development organizations around the world. It sets out a universal framework for sustainability reporting based on the shared understanding that such information can provide new insights into how companies operate and their contribution to sustainable development.
When we conducted our inaugural environmental, social and governance (ESG) survey of private equity (PE) professionals last year, it was startling to see that nearly half (49%) of our general partner (GP) respondents did not have an ESG program at their firm and had no plans to create one, despite heightened concern from limited partners (LPs) on ESG issues. What a difference a year makes—not to mention the fact that we had a higher proportion of European respondents this year, who are much more progressive when it comes to ESG issues. In our second edition of the ESG survey, a majority of GP respondents (60%) now work at a firm with an established ESG program and another 26% either have an ESG program in development or plan to create one in the near future. However, there are still some PE firms that see little value in ESG programs. As one GP respondent put it: “we think [ESG] is the most asinine initiative ever to come out in the business world.”
While some PE firms eschew ESG issues and think that strong fund performance is enough to attract LP commitments, the LPs themselves are telling a different story. Eighty-four percent of LP respondents say that ESG issues are at least somewhat important when deciding whether or not to commit to a PE fund, with 18% claiming they are essential. Furthermore, 24% said they would they would commit to a fund with slightly lower historical performance if the firm had a strong ESG program. Remember, many of the largest contributors to PE funds are public pension plans, endowments, foundations and sovereign wealth funds—institutions which not only are interested in returns but also have an image to maintain. “GPs have to be more aware of investors’ desire for knowledge of their investments beyond just the financial return,” commented one LP respondent, while adding that the responsibility ultimately falls on the investors: “GPs will only change if the LPs push them to.”
One of the big takeaways from this year’s survey is that more PE firms are taking the necessary steps to make ESG a fundamental part of their investment approach. For example, 28% of GP respondents indicated that their firm produces a corporate social responsibility (CSR) report, up from 18% in 2012. And while finding effective metrics to monitor ESG performance continues to be the largest hurdle for ESG efforts, PE firms continue to find new ways to measure their ESG initiatives and have increasingly utilized forums, case studies and industry events and guidelines to fill the knowledge gap.
We hope that this survey serves as a lens into the current state of ESG issues in the PE industry and provides a starting point for developing a set of best practices that can be adopted by firms of all sizes. If you are interested in participating in future editions of the survey, or have any comments or suggestions for how we can improve this report, please contact us at research@pitchbook.com.
Too often environmental, social and governance (ESG) initiatives are simply looked at through a compliance and risk management prism. But this ignores the real opportunity that embracing and managing ESG issues presents - that of enhancing business value. This presentation lays out the service value chain and brand value linkages while illustrating how strong ESG performance translates to superior market performance.
Material Engagement is the missing link between the sharp growth in ESG aligned assets, and the lack of progress on many of the pressing environmental, social and governance issues facing humanity today. The sustainability priorities of Material Engagement are grounded in human rights by virtue of its focus on the 2030 UN Sustainable Development Goals (SDGs). Furthermore, by linking the SDGs to SASB’s Materiality Map, the Material Engagement approach provides the legal, commercial, and strategic impetus for companies to make the SDGs a reality. Said another way, Material Engagement is an approach that combines the heart (SDGs) with the brain (SASB) thus birthing a new sustainable business reality, one that’s rooted in human rights, and guided by the power and genius of private enterprise. In addition to its powerful intellectual and moral foundation, Material Engagement offers a turn-key sustainability engagement solution, with relevant KPIs, scope and milestones blueprints, clear timelines, escalation pathways, and communication methods. Material Engagement is the missing link between the world we have, and the world humanity deserves.
Material Engagement (with suppliment included)Nawar Alsaadi
Material Engagement is the missing link between the sharp growth in ESG aligned assets, and the lack of progress on many of the pressing environmental, social and governance issues facing humanity today. The sustainability priorities of Material Engagement are grounded in human rights by virtue of its focus on the 2030 UN Sustainable Development Goals (SDGs). Furthermore, by linking the SDGs to SASB’s Materiality Map, the Material Engagement approach provides the legal, commercial, and strategic impetus for companies to make the SDGs a reality. Said another way, Material Engagement is an approach that combines the heart (SDGs) with the brain (SASB) thus birthing a new sustainable business reality, one that’s rooted in human rights, and guided by the power and genius of private enterprise. In addition to its powerful intellectual and moral foundation, Material Engagement offers a turn-key sustainability engagement solution, with relevant KPIs, scope and milestones blueprints, clear timelines, escalation pathways, and communication methods. Material Engagement is the missing link between the world we have, and the world humanity deserves.
This Research Spotlight provides a summary of the academic literature on environmental, social, and governance (ESG) activities including:
• The relation between ESG activities and firm value
• The impact of environmental and social engagements on firm performance
• The market reaction to ESG events
• The relation between ESG and agency problems
• The performance of socially responsible investment (SRI) funds
This Research Spotlight expands upon issues introduced in the Quick Guide “Investors and Activism”.
Presentation by Vittorio Lusvarghi, chair of the Professional Accountants in Business Committee Sustainability Task Force, at the Institute of Cost Accountants of India's National Cost Convention, New Delhi, India, March 2012.
NL:
ESG Routekaart.
De dwingende uitdaging waarvoor wij staan op het gebied van milieu is, om met zijn allen de beweging in gang te zetten om de gemiddelde opwarming van de aarde tot 1,5 graden te beperken. Sommige belanghebbenden, gouvernementele organisaties en banken, vragen regelmatig om verbetering en het aanscherpen van de Europese wetgeving met betrekking tot het klimaat. De EU zou tegen 2050 een totale reductie van de binnenlandse emissies van 80% moeten realiseren. Door een eenduidig stappenplan te borgen, is een concrete stap naar verduurzamen. Denk daarbij aan de interne- en externe belanghebbenden te betrekken voor de implementatie van initiatieven om CO2-emissies te verminderen, of een stap verder zou zijn, om de emissies te compenseren. De Routekaart beschrijft aan de hand van analyses, en sector specifieke KPI’s, modellen hoe dit beleid goed zou kunnen worden geborgd in een Environmental Socio-Economic Governance beleid. De Routekaart biedt op de lange termijn een kosten efficiënt pad naar een schonere, klimaatvriendelijke bedrijf.
Short biography of the presenter; Ginio Franker, September 1966, Suriname.
Position Learning and Development NLP-trainer & Transpersoonlijke coach + Climate Leader trained by Al Gore. "A Moral Call to Climate Change" + "Environmental Justice".
Website www.greandream.com.
EN:
ESG-ROADMAP
With the effects of climate change already upon us, the need to cut global greenhouse gas emissions is nothing less than urgent. It’s a daunting challenge, but the technologies and strategies to meet it exist today. A small set of ESG policies, designed and implemented well, can put us on the path to a low carbon future. ESG Key Performance Indicators are complex, so they must be sector specific, focused and cost-effective. One-size-fits-all approaches simply won’t get the job done. Sustainability managers need a clear, comprehensive resource that outlines the ESG policies that will have the biggest impact on our climate future, and describes how to implement these policies well within their own organisations.
We don’t need to wait for new technologies or strategies to create a low carbon future—and we can’t afford to. ESG-ROADMAP gives professionals the tools they need to select, design, and implement the policies that can put us on the path to a livable climate future.
The Environmental Social Governance challenges e.g: on regulatory and reputational risks, market scandals and new market opportunities makes ESG information a data source of growing importance. With ESG in company seminars, round table discussions, scholarships and online association programs, we leave no one behind. Sign up today. Zentrepreneur Environmental Social Governance Associates Training. (ZESGA).
contact@esgwatch.eu
+32485773608 BE
+31630092220 NL
What is socially responsible investment?dean771100
Socially Responsible Investments
Socially responsible investing is one of several similar approaches and concepts that impact how asset managers invest, in a socially responsible way. SRI's have been around for over 30 years in one form or another, and take the desire to make money and use it to create a better world. Companies which generate positive, measurable social and environmental change alongside a financial return. Keep in mind that it is a developing niche and therefore not without hiccups.
ESG investing leads to sustainability and ethical business practices but does ESG investing work when you want to make money? While this way to invest is a positive social force, does ESG investing work to increase your investment assets? Or is it a way to give to charitable causes while being disguised as a way to invest? Will you make money investing this way or would you do better simply giving your money to a cause that you support?
https://youtu.be/YXdOIB5uV_8
By David F. Larcker, Brian Tayan, Dottie Schindlinger and Anne Kors, CGRI Survey Series. Corporate Governance Research Initiative, Stanford Rock Center for Corporate Governance and the Diligent Institute, November 2019
New research from the Rock Center for Corporate Governance at Stanford University and the Diligent Institute finds that corporate directors are not as shareholder-centric as commonly believed and that companies do not put the needs of shareholders significantly above the needs of their employees or society at large. Instead, directors pay considerable attention to important stakeholders—particularly their workforce—and take the interests of these groups into account as part of their long-term business planning.
• While directors are largely satisfied with their ESG-related efforts, they do not believe the outside world understands or appreciates the work they do.
• Directors recognize that tensions exist between shareholder and stakeholder interests. That said,
most believe their companies successfully balance this tension.
• In general, directors reject the view that their companies have a short-term investment horizon in
running their businesses.
In the summer of 2019, the Diligent Institute and the Rock Center for Corporate Governance at Stanford University surveyed nearly 200 directors of public and private corporations globally to better understand how they balance shareholder and stakeholder needs.
Political risk, ESG and market performance - March 2014Damian Karmelich
As the ASX releases new corporate governance guidelines with an increased focus on risk management and environmental, social and governance principles Political Monitor examines the link between ESG, political risk & market performance.
Balanced Rock Investment Advisors educational presentation on alternative investment strategies that reflect personal values.
Presented @ Brookline Library - 10.15.2015
What is an ESG Audit?
Environmental, social and governance (ESG) risks are inevitable for every business. But how these issues are collected, managed and reported are what will make the difference between a company that is prepared or not.
Socially Responsible Investing - Keynote - "State of the Union"MarkDonohue
In June 2010, Mark was asked to present a one-hour keynote on the state of research into socially responsible investing. This was presented in NYC to a large group organized by Steve Scheuth and his SRI in the Rockies / First Affirmative Financial organizations.
What is the global reporting initiative?dean771100
What is the Global Reporting Initiative?
The GRI is a global standard for sustainability reporting designed by organizations and investors to measure business performance. The GRI has been adopted as a requirement by leading institutional investors, government regulators and development organizations around the world. It sets out a universal framework for sustainability reporting based on the shared understanding that such information can provide new insights into how companies operate and their contribution to sustainable development.
When we conducted our inaugural environmental, social and governance (ESG) survey of private equity (PE) professionals last year, it was startling to see that nearly half (49%) of our general partner (GP) respondents did not have an ESG program at their firm and had no plans to create one, despite heightened concern from limited partners (LPs) on ESG issues. What a difference a year makes—not to mention the fact that we had a higher proportion of European respondents this year, who are much more progressive when it comes to ESG issues. In our second edition of the ESG survey, a majority of GP respondents (60%) now work at a firm with an established ESG program and another 26% either have an ESG program in development or plan to create one in the near future. However, there are still some PE firms that see little value in ESG programs. As one GP respondent put it: “we think [ESG] is the most asinine initiative ever to come out in the business world.”
While some PE firms eschew ESG issues and think that strong fund performance is enough to attract LP commitments, the LPs themselves are telling a different story. Eighty-four percent of LP respondents say that ESG issues are at least somewhat important when deciding whether or not to commit to a PE fund, with 18% claiming they are essential. Furthermore, 24% said they would they would commit to a fund with slightly lower historical performance if the firm had a strong ESG program. Remember, many of the largest contributors to PE funds are public pension plans, endowments, foundations and sovereign wealth funds—institutions which not only are interested in returns but also have an image to maintain. “GPs have to be more aware of investors’ desire for knowledge of their investments beyond just the financial return,” commented one LP respondent, while adding that the responsibility ultimately falls on the investors: “GPs will only change if the LPs push them to.”
One of the big takeaways from this year’s survey is that more PE firms are taking the necessary steps to make ESG a fundamental part of their investment approach. For example, 28% of GP respondents indicated that their firm produces a corporate social responsibility (CSR) report, up from 18% in 2012. And while finding effective metrics to monitor ESG performance continues to be the largest hurdle for ESG efforts, PE firms continue to find new ways to measure their ESG initiatives and have increasingly utilized forums, case studies and industry events and guidelines to fill the knowledge gap.
We hope that this survey serves as a lens into the current state of ESG issues in the PE industry and provides a starting point for developing a set of best practices that can be adopted by firms of all sizes. If you are interested in participating in future editions of the survey, or have any comments or suggestions for how we can improve this report, please contact us at research@pitchbook.com.
Too often environmental, social and governance (ESG) initiatives are simply looked at through a compliance and risk management prism. But this ignores the real opportunity that embracing and managing ESG issues presents - that of enhancing business value. This presentation lays out the service value chain and brand value linkages while illustrating how strong ESG performance translates to superior market performance.
Material Engagement is the missing link between the sharp growth in ESG aligned assets, and the lack of progress on many of the pressing environmental, social and governance issues facing humanity today. The sustainability priorities of Material Engagement are grounded in human rights by virtue of its focus on the 2030 UN Sustainable Development Goals (SDGs). Furthermore, by linking the SDGs to SASB’s Materiality Map, the Material Engagement approach provides the legal, commercial, and strategic impetus for companies to make the SDGs a reality. Said another way, Material Engagement is an approach that combines the heart (SDGs) with the brain (SASB) thus birthing a new sustainable business reality, one that’s rooted in human rights, and guided by the power and genius of private enterprise. In addition to its powerful intellectual and moral foundation, Material Engagement offers a turn-key sustainability engagement solution, with relevant KPIs, scope and milestones blueprints, clear timelines, escalation pathways, and communication methods. Material Engagement is the missing link between the world we have, and the world humanity deserves.
Material Engagement (with suppliment included)Nawar Alsaadi
Material Engagement is the missing link between the sharp growth in ESG aligned assets, and the lack of progress on many of the pressing environmental, social and governance issues facing humanity today. The sustainability priorities of Material Engagement are grounded in human rights by virtue of its focus on the 2030 UN Sustainable Development Goals (SDGs). Furthermore, by linking the SDGs to SASB’s Materiality Map, the Material Engagement approach provides the legal, commercial, and strategic impetus for companies to make the SDGs a reality. Said another way, Material Engagement is an approach that combines the heart (SDGs) with the brain (SASB) thus birthing a new sustainable business reality, one that’s rooted in human rights, and guided by the power and genius of private enterprise. In addition to its powerful intellectual and moral foundation, Material Engagement offers a turn-key sustainability engagement solution, with relevant KPIs, scope and milestones blueprints, clear timelines, escalation pathways, and communication methods. Material Engagement is the missing link between the world we have, and the world humanity deserves.
[Salterbaxter Directions] Moving The Goal PostsMSL
Is your business goal-ready to move beyond 2020? Explore a new generation of emerging sustainability goals that are unlocking business returns and driving transformational change.
Measure What Matters - New Perspectives on Portfolio SelectionUMT
Stock market investors articulate their goals explicitly or implicitly by following the philosophy and methodology of a market expert that fits their investment objectives and appetite for risk. For example, for value and income stocks they may rely on the research conducted by Wharton finance professor Jeremy Siegel¹ or read up on market pros like War-ren Buffet. Much like the stock market investor, companies investing in change face similar challenges when considering where to allocate budget and resources to meet financial and strategic objectives.
The NIRI Chicago 2019 investor relations workshop focused on the forces shaping the future of IR, exploring economic forecasting, investor activism, ESG issue, corporate access, and more.
Good Measures: The Case for Quantification in Impact InvestmentPabloVerra
The impact investment sector has duly recognized that impact measurement is central to legitimizing the practice of impact investing. Increasingly, investors want to have more detailed social and environmental performance data so they can scrutinize it as they do with financial data. This enables investors to have a better understanding of social returns on investment and re-allocate investment capital accordingly.
By Brandon Boze, Margarita Krivitski, David F. Larcker, Brian Tayan, and Eva Zlotnicka
Stanford Closer Look Series
May 23, 2019
Recently, there has been debate among corporate managers, board of directors, and institutional investors around how best to incorporate ESG (environmental, social, and governance) factors into strategic and investment decision-making processes. In this Closer Look, we examine a framework informed by the experience of ValueAct Capital and include case examples.
We ask:
• What is the investment horizon prevalent among most companies today?
• Do companies miss long-term opportunities because of a focus on short-term costs?
• How many companies have an opportunity to profitably invest in ESG solutions?
• What factors determine whether a company can profitably invest in ESG solutions?
• Can investors earn competitive risk-adjusted returns through ESG investments?
• If so, how widespread is this opportunity?
Adopting Leading ESG Practices can enhance Corporate Value.pdfSG Analytics
Explore the latest trends and predictions for the future of the Internet of Things (IoT) in 2023. From advancements in edge computing and AI, to the increasing adoption of 5G networks and the growing importance of data privacy and security, this article provides a comprehensive overview of what to expect in the IoT landscape in the coming years. Stay ahead of the curve and discover how these emerging trends will shape the future of IoT and transform the way we live and work.
The ES&G Accountability Forum (2013) provided participants and panelists with an opportunity to examine the question of how information (both financial and non-financial) can best be provided in a form that is useful to decision makers that are affected by, or have an affect on Canada’s companies.
This document captures key points made by panelists, their answers to questions posed, and the Forum’s participants’ table discussions. It is organized around each panel: investors, companies, evaluation organizations. We hope to encourage all groups to consider the advice and comments discussed at the Forum, and to take action on the outstanding questions and issues to improve the state of ES&G disclosure, analysis and investing that are highlighted on pages 9 & 10.
This year on September 23, 2014 in Calgary, many of these unanswered questions will be addressed at the ES&G Forum 2014: "Non-financial performance... A missed opportunity?"
Building on the last two years' discussions, participants will hear how investors and businesses are implementing innovative methods to manage investor demand for ES&G information. To learn more about & register for this year's ES&G Forum, please visit: http://bit.ly/esg-forum-2014
Similar to The Ultimate Active Ownership Guide (Presentation) (20)
Material Engagement with SDG Compass Integration Nawar Alsaadi
This is a supplementary presentation to the original Material Engagement presentation demonstrating the process to integrate SDG Compass within Material Engagement.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
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Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
The Ultimate Active Ownership Guide (Presentation)
1. The Ultimate Active Ownership Guide
Nawar Alsaadi, FSA, SIPC
Engage For a Better World….
Equities
2. Active ownership, or engagement, entails an active and
purposeful dialogue between an investor and an investee
company for the purpose of changing the latter corporate
strategy, or improving its sustainability (ESG) performance. The
ultimate goal of such dialogue is to enhance and preserve the
value of the investors’ investment.
What is Active Ownership?
Nawar Alsaadi, FSA, SIPC 2
3. Why Does Active Ownership Matter?
‘We find that ESG engagements generate
a cumulative size-adjusted abnormal
return of +2.3% over the year following
the initial engagement. Cumulative
abnormal returns are much higher for
successful engagements (+7.1%) and
gradually flatten out after a year, when
the objective is accomplished for the
median firm in our sample. We do not
find any market reaction to unsuccessful
engagements.’
‘The proportion of target-firm boards with
at least one female board member more
than doubled in the two-year period
following initiation of the shareholder
proposal, increasing from 21.7% to 57.5%,
which is significantly greater than the
increase from 35.8% to 52.5% for non-
targeted firms. Similarly, the percentage of
females on the board increases significantly
from 3.0% to 8.1% for targeted firms versus
the increase for non-targeted firms from
4.4% to 7.3%.’
‘Shareholder engagement emerges as
the most reliable mechanism for
investors seeking impact, in the sense
that it has been clearly demonstrated
empirically.’
Active Ownership Study
Elroy Dimson University of Cambridge
and London Business School
Oğuzhan Karakaş
Boston College
Xi Li
Temple University
2015
2152 Engagements Studied over a 10 Year Period
(1252 Environmental & Social - ES)
(900 Corporate Governance - CG)
Can Sustainable Investing Save the World?
Reviewing the Mechanisms of Investor Impact
Julian F. Kölbel1,2, Florian Heeb2, Falko Paetzold2, and
Timo Busch2
1MIT Sloan, Cambridge MA, USA2Universityof Zurich,
Department of Banking and Finance, Center for Sustainable
Finance and Private Wealth (CSP), Zürich,
Switzerland3Universityof Hamburg, School of Business,
Economics and Social Science,Hamburg, Germany
2019
64 Investor Impact Studies Analyzed
Can Shareholder Activism Improve Gender
Diversity on Corporate Boards?
Carol Marquardt
Baruch College, CUNY
Christine Wiedman
University of Waterloo
2014
182 Shareholder Proposals Analyzed
1998 – 2011
Active Ownership is a Reliable
Method to Create Wealth &
Sustainability Impact
Nawar Alsaadi, FSA, SIPC 3
4. Where Does Active Ownership Fit in The Responsible Investing Universe?
Negative/exclusionary
screening
Positive/best-in-class
screening
ESG integration
Sustainability themed
investing
Impact/community
investing
Corporate engagement
and shareholder action
Responsible investing classifications and definitions may differ across industry practitioners. Some consider
engagement to be an integral part of their ESG integration strategy rather than a standalone approach as highlighted
by GSIA. Others may use engagement as an impact investing tool by explicitly targeting sustainability/ESG laggards
within their portfolios.
Source: GSIA, 2018
Nawar Alsaadi, FSA, SIPC 4
6. Engagement Overview
Your Organization Mission
& Value System
Engagement Goal (s) Engagement
Objective (s)
Nawar Alsaadi, FSA, SIPC 6
Post Engagement
Engagement
Tracking
Engagement
Reporting
Example:
Human Rights
Example:
SDG-5 (Gender Equality)
Example:
Increase the Number
of Women
In Leadership
Positions
Associated
Metrics
Screen for
Targets
Focus List
Example:
Percentage of
Women in C-
Suite/Board
Engage
Assess
7. Engagement Goal
Enhance Investment
Returns
Enhance
Sustainability/ESG
Performance
Reduce Financial Risks
Reduce Sustainability/ESG
Risks
Comply with
Sustainability/ESG
Regulation
Comply with ESG
Investment Mandate
Advance Sustainability
Agenda (SDGs, UN Global
Compact, Paris Climate
Deal … etc.)
Information Gathering
The above goal (goals) could apply to an individual investments and/or
to the totality of the portfolio. You may combine multiple goals as part
of your engagement goal setting process
Nawar Alsaadi, FSA, SIPC 7
Engagement Goal (s) Examples
8. Engagement Objective & Relevant Metrics
Your engagement objective is a function of your engagement goal
Improve Portfolio,
or Company
Water
Consumption
Financial Indicators
Non-Financial
Indicators (SASB,
GRI, TCFD, SDG
related indicators …
etc.)
Engagement Goal Engagement Objective Engagement Metrics
1 2 3
Your engagement objective will determine your engagement metrics
Nawar Alsaadi, FSA, SIPC 8
11. Example
Finding financially material social sustainability metrics for Adobe Inc (using SASB):
Nawar Alsaadi, FSA, SIPC 11
Your Identified
Adobe Social
Sustainability
Engagement
Metrics
(SASB)
Engagement
Metrics
12. Screening for Engagement Targets
Engagement targets screening can be done through a commercial ESG data
solution, or could be developed in-house
The scale of the identified
business or sustainability
deficiency or deficiencies
The potential impact of that issue
on your portfolio
Your ability to affect change
The availability of engagement
metrics, a measurable path to a
solution
Your engagement resources
The scope and urgency of your
engagement goal/objective
Engagement
Focus
List
Nawar Alsaadi, FSA, SIPC 12
Target Screening Priorities
14. Define
Engagement
Scope
Set KPIs &
Milestones, and
Timelines
Select
Engagement
Approach
Select
Communication
Method
Establish
Escalation
Strategy
Engagement Plan
Nawar Alsaadi, FSA, SIPC 14
15. Engagement/Stewardship
Function
Proxy Voting
Function
Portfolio
Management
Function
Define Engagement Scope
The objective of your
engagement
The urgency of the
engagement
The nature of the
business or
sustainability deficiency
exhibited by the
company
Your available
engagement resources
The size of your
investment in the
company
Your investment holding
period
Your stewardship policy
The extent of change
you would like to see at
the company
Single sustainability or
business issue, or
multiple issues
engagement
The regulation or
investment mandate
tied to the engagement
The extent of buy-in
inside your firm
The solidity of your
theory of change for the
chosen engagement
topic
The Engagement Scope Requires the Integration of Multiple
Departmental Priorities
Engagement Scope (example):
The Engagement Scope Set of Variables
Limited Moderate Involved Extensive
Nawar Alsaadi, FSA, SIPC 15
The engagement scope is
not static, the scope may
change and evolve
overtime as new
information comes into
light
16. Define Engagement Scope - Timeline & Milestones
Inverse relationship between the complexity
of the ask and the time required to see it
through.
Milestones can be thought of as ‘mini
objectives’ within your grand engagement
objective(s).
Missed milestones might signal a need for a
change of engagement approach, or a need
to escalate.
Milestones can remain internal to your firm
or be shared with the target company for
tactical or strategic reasons.
Nawar Alsaadi, FSA, SIPC 16
18. Setting Engagement KPIs - financially material social sustainability metrics for Adobe Inc (using SASB)
Define
Engagement
Scope
Nawar Alsaadi, FSA, SIPC 18
Your
Previously
Identified
Engagement
Indicators
(Step 3)
19. Define
Engagement
Scope
Depending on your priority, focus your engagement on one or more of the identified sustainability
reporting or performance deficiencies
Ground your metric/KPI
improvement request in
a solid rational
(scientific/empirical
basis, best in class …
etc.)
Nawar Alsaadi, FSA, SIPC 19
Setting Engagement KPIs - financially material social sustainability metrics for Adobe Inc (using SASB)
Four Potential
Engagement Areas
Establish Quantitive, Qualitative
Engagement Target or
Disclosure Request for Each
Metric/KPI
20. Define Engagement Scope - Engagement Approach
Nawar Alsaadi, FSA, SIPC 20
Private engagements are generally perceived to be less hostile than public engagements. Public engagements are
often the product of a failed private engagement. In certain cultures, where saving face is important such in Asia and
the Middle East its best to focus on a private approach.
A long-term engagement approach is proper for a fundamental long-term sustainability improvement and vice versa,
a short-term engagement approach is appropriate for a simple sustainability improvement (such as improving the
investee company sustainability disclosure).
Collective engagements tend to have a bigger impact, however collective engagements are much harder to
organize/manage than individual engagements. Accordingly, one should be aware of the trade off between impact
and efficiency when deciding on an individual or collective engagement approach.
Meeting company officials in person or individually is best taken as a second step after an initial written letter,
outlining the issues at hand, has been submitted. Nonetheless, a courtesy call to investor relations or the corporate
sectary of an upcoming letter might be a tactful step to take.
Which officer to engage at a given company is a function of the sustainability or business factor subject to
engagement.
An individual or a collective engagement meeting may commence informally, as a side discussion during an annual
shareholders’ meeting, investors’ meeting, or other formal/informal event. An investor may choose an informal
engagement approach by design.
When engaging a company, you need to be cognizant of its regulatory deadlines such as the annual shareholder
meeting (AGM). Periods leading to the AGM tend occupy much of a given company officers time and may not be
conducive for a large scope engagement.
The intensity of your engagement approach will be decided during this phase (in alignment with your engagement
scope). The intensity of your engagement could have beneficial or adverse effects on your engagement outcome and
must be given sufficient thought.
Trust is an important element throughout the process, make sure to orchestrate your approach in a manner that
builds trust in your capabilities, in your understanding of the company, in the solution you are proposing to solve the
identified problem, and your commitment to see the issue resolved.
Short vs.
Long Term
Individual
vs.
Collective
Private vs.
Public
Meeting
with
Company
Officer to
Engage
Informal
Engagement
Approach
Timing
Intensity
Trust
21. Individual Engagement Collective Engagement
Generic Letter
(Soft)
Generic Letter
(Soft)
Tailored Letter/Conference Call
(Soft/Medium)
Tailored Letter/Conf. Call
(Medium)
Periodic/Informal Meeting (in person, virtual)
(Soft/Medium)
Periodic/Informal Meeting (in person, virtual)
(Medium-Soft/Medium)
Special Meeting (in person, virtual)
(Medium/Hard)
Special Meeting (in person, virtual)
(Hard)
Public Communication (press release, media
article…)
(Medium/Hard)
Public Communication (press release, media
article…)
(Medium/Hard)
Define Engagement Scope - Communication Method
The communication method can change the tune of the engagement without
changing the wording. Choose your communication method carefully.
Nawar Alsaadi, FSA, SIPC 21
“The single biggest problem in communication is the illusion that it has taken place.” – George Bernard Shaw
22. 1. Demonstrate your knowledge of the company. Show that you have done your homework and understand the company’s business model and
how a particular risk or issue relates to the company’s operations. Use language that will resonate with the company, avoiding jargon or
acronyms. (The same logic applies when meeting with the company, make sure you understand the company business model and challenges
before making a peculiar ask, if not limit the meeting to information gathering).
2. Be Clear. Early in the letter, communicate the action you are requesting. Many letters build the case first, which pushes the “ask” to near the
end where it may be overlooked. Executives are busy people. Say what you want up front, followed by your supporting arguments. Also, be
aware of the counter arguments to your ask, prepare a response for them, and include it in the letter if possible (or in person if you are
conversing with the designated officer at the company). Be clear about when, and how to expect to receive a response from the company.
3. Be Concise. Often, engagers tend to lay out the full business case and all supporting details in every letter, resulting in a document that is so
long it loses impact. Collaborative letters are particularly challenging because signatories want their individual perspectives to be represented.
Compromises may be required to achieve the shared end-goal. Use the body of the letter to introduce your points, and use footnotes, web
links and appendices to elaborate.
4. Write to the highest professional standards. Unfortunately, an alarming number of poorly written letters are circulated for sign-on. A clear,
concise, high-quality letter establishes the credibility of both the argument and the author(s). Research your sources to ensure that they are
reputable. Always ask someone else to review and edit. Read it aloud, sleep on it, and read it again.
*Some of these letter writing guidelines were adopted from an article by Anita Green at Wespath Investment Management.
Engagement Letter Writing Guidelines
The above guidelines are not set in stone. Engagers may develop a distinct
engagement writing style of their own. Nonetheless, be open to adjusting your
engagement letter writing style to unsure improved outcomes.
Nawar Alsaadi, FSA, SIPC 22
“Let us never underestimate the power of a well-written letter.”— Jane Austen
26. Engagements can be a tremendous source
of information about a company. If the
portfolio manager and proxy voting
manager are not part of the engagement
process, make sure that they are made
aware of your progress. Likewise, make
sure that you are aware of your
colleagues’ actions in matters pertaining
to the engaged company.
For multi-asset firms, co-ordination with
the debt/fixed income side of the
business could be a useful tool to exsert
additional pressure on the engaged
company thus obtaining better (and
potentially faster) engagement outcome.
Proxy voting and cross assets co-
ordination can be a powerful tool to
advance your engagement agenda.
Internal Communication & Co-ordination
Engagement/Stewardship
Function
Proxy Voting
Function
Portfolio
Management
Function
Establish weekly, monthly, or quarterly engagement update calls between the relevant departments
right at the start of the engagement process.
Provide easy access to ongoing and historic engagement information firmwide.
Nawar Alsaadi, FSA, SIPC 26
27. Define Engagement Scope – Escalation Strategy
Escalation Strategy Basics
• How to escalate an engagement is highly dependent on where you are in the
engagement process. How far are you from your objective? What engagement
approach are you pursuing?
• The manner in which you escalate is equally a function of the engagement context,
existing regulation, the prevailing stewardship code, the culture of the investee
company and country where it is located, the depth of and trust in the relationship
between you and the investee company management and board, the size of your
investment, and the nature and urgency of your final objective.
• Your ability to de-escalate post escalation should also influence your decision to
escalate. Certain escalation strategies (i.e. turning a private engagement in a public
one) can’t be dialed back easily. Do not paint yourself or the investee company into a
corner.
• Make sure the chosen escalation method is consistent with your ultimate goal and
stated objectives. Long term material sustainability objectives require a patient
engagement approach, and thus a carefully dosed escalation mechanism.
Decide how far you would like to
go before you start
An escalation could take place at
any phase during the
engagement process
An escalation could be followed
by a de-escalation or vice versa
You should only escalate if you
are able and willing to manage
the consequences
Don’t jump the gun
How to Escalate?
Nawar Alsaadi, FSA, SIPC 27
28. Define Engagement Scope – Escalation Strategy
Nawar Alsaadi, FSA, SIPC 28
Always be aware of where you are in the escalation scale,
and plan accordingly
Escalation Pathway
30. Engagement Reporting
Nawar Alsaadi, FSA, SIPC 30
• Reports’ Frequency and Accessibility: It is best practice to
report on your engagement activity on quarterly basis,
followed by a comprehensive annual report at the end of the
year. You should also make your engagement data available
on your website and update it on a timely basis.
• Reports’ Comprehensiveness: Your engagement/stewardship
reports could be combined with your proxy voting reports,
considering the tight correlation between the two activities.
As you expand on your engagement activity, avoid
generalities, providing specifics as to whom you are engaging
with and on what (at least in a general sense such as under
which letter in the ESG spectrum).
• Record Keeping: Keeping organized, accessible, and traceable
engagement activity records will greatly assist you in your
engagement reporting activity. Accurate record keeping will
make the reporting function seamless.
• Engagement Impact Reporting: Including information on the
metrics/KPIs you are engaging on will provide your clients,
partners, and the report readers a better idea as to your
progress.