Private Equity Wire: Private equity investment in clean technology surged to over $27 billion in 2021, up from roughly $20 billion in 2020. Private equity firms have invested almost $150 billion and sponsored more than 1,000 US clean technology companies over the past decade.
Yahoo Finance: Utah’s governor and its federal lawmakers are objecting to S&P Global’s move to publish ESG indicators for U.S. states, calling it an undue politicization of the ratings process.
Portfolio Adviser: Transparency on gender equality in UK companies has received a much-needed boost from compulsory gender pay gap reporting since 2017, even if the figures themselves have been somewhat stagnant.
BNN Bloomberg: The hedge-fund industry’s claim that short-selling is an effective way to do environmental, social and governance investing is questionable on several levels, according to MSCI Inc.
CNBC: Carl Icahn released his letter to McDonald’s shareholders on Thursday, calling out compensation among the company’s top ranks and Wall Street firms for their ESG investing policies.
BNN Bloomberg: None of the world’s largest asset managers has definitively called on fossil-fuel companies to stop the development of new oil and gas projects.
Advisor's Edge: The Financial Conduct Authority (FCA) is adopting final rules that will set board diversity targets for public companies in the United Kingdom.
Private Equity Wire: Venture capital fundraising in the US reached an all-time high of USD330 billion in 2021. But through one lens, things look very much the same as they did 10 years ago. The capital is still not finding its way into female-led start-ups.
Investment Executive: The benefits of sustainable bond strategies can outweigh any potential loss of opportunities. “Investors now are under even more scrutiny to ensure that they’re not lending to unstable governments or companies,” said Avi Hooper, senior portfolio manager with Toronto-based Invesco Canada Ltd.
Market Watch: Socially responsible investing in emerging markets was never easy, but Russia’s invasion of Ukraine has investors reassessing how to rate emerging markets on environmental, social and governance grounds.
Financial Post: The recent credit market selloff has been particularly hard on sustainable debt, challenging the popular premise that investors can do well and do good at the same time.
The Asset: Wealth advisers risk failing investors on suitability by not using appropriate technology to measure environmental, social and governance (ESG) preferences and being caught up in the “green rush”, behavioural finance experts warn.
Private Equity Wire: Recent estimates put the figure at around 200 standards globally, for reporting and assessing sustainability risks across fund portfolios. Many have little coordination between regulators, investors or across different jurisdictions.
Advisor's Edge: The Canadian Investment Funds Standards Committee (CIFSC) released a second draft of its responsible investing identification framework for mutual funds, ETFs, segregated funds and pooled funds.
ETF Trends: While environmental, social, and governance investing has become more popular, so has the concept of “greenwashing.” Greenwashing is when a money manager uses marketing and PR tactics to overhype their ESG efforts so they can seem more committed to socially responsible investing than they really are.
Institutional Investor: With demand at a record high — and an equal number of competitors bidding for the business — asset managers need to launch more specialist products if they hope to attract a critical mass of investors.
City A.M.: No City earnings call, annual report, or even chief executive interview is now complete without a mention of what a firm is doing to meet its ‘ESG goals.’ At times this has bordered on the ludicrous: Terry Smith, the legendary investor, found a warm audience to his critique of Unilever attempting to define the purpose of Hellmann’s mayonnaise.
CNBC: Over the last five years, good ESG stocks have seen a huge jump in cash inflows and higher valuations, resulting in a short-term green premium, or “greenium,” for the asset, Buckingham Strategic Wealth’s chief research officer, Larry Swedroe, told CNBC’s “ETF Edge”.
BNN Bloomberg: Russia’s invasion of Ukraine has exacerbated already historic demands on the resources that enable global growth, Jeremy Grantham, co-founder of Boston-based asset manager GMO, wrote in a new commentary.
Investment Executive: Royal Bank of Canada’s chief executive officer says an “orderly transition” to a net-zero economy is crucial, as he faced questions and criticism about the bank’s climate strategy and ongoing financing of fossil fuels during its annual shareholder meeting.
FT Adviser: From being almost totally unheard of a few years ago, it now pops up in every new fund, strategy and even job title that lands in my inbox with a metaphorical thud.
BNN Bloomberg: An influential coalition of asset owners overseeing a combined $10 trillion is calling for adjustments to a strategy known as ESG engagement in an effort to reduce carbon emissions more effectively.
BNN Bloomberg: Almost one in five companies plan to take no stand on Russia’s invasion of Ukraine, slightly more than those who have publicized their position on the war, illustrating the reluctance of corporate leaders to speak out on hot-button issues.
BNN Bloomberg: Globally, 49.6% of ESG hires were women in 2020 and 2021, according to a study issued Wednesday by HFObserver, an online data platform that tracks employment in the alternative asset management industry. By contrast, women made up only about 29% of overall hires in the sector.
Institutional Investor: Underperformance and environmental concerns drove investors away from oil and gas investments for years. But now, as the market paradigm is shifting, some investors are reconsidering that decision — and what they should do next.
Knight Foundation: The John S. and James L. Knight Foundation, in partnership with Global Economics Group, released a new study revealing that asset management firms owned by women and people of color are at least three times more likely to employ diverse teams when compared to firms led primarily by white men.
Private Equity Wire: Based in London, Gomez will oversee General Atlantic’s strategy to advance environmental, social and governance (ESG) efforts at the firm and across its portfolio.
Private Equity Wire: While more women are participating in dealmaking, especially among Millennials and Generation Z, women dealmakers have felt less appreciated and supported than their male counterparts in the last year, according to findings from a new survey of 600 global dealmakers across the US, Canada, UK, Australia, France, and Germany by Datasite, an SaaS-based technology provider for global mergers and acquisitions (M&A) professionals.
BNN Bloomberg: Capital Fund Management SA is looking more closely at all the ways in which banks’ climate exposure will start to feed into their share prices, as regulators roll out increasingly tough environmental, social and governance rules.
MSN: Macquarie Asset Management, part of Macquarie Group, said on Thursday it has agreed to buy a 50% stake in UK-based renewable energy developer Island Green Power for an undisclosed sum.
Hedge Week: The new fund applies a long-only, actively managed equity thematic investment strategy with a strong sustainability focus. It is designed to generate returns while targeting a positive environmental impact by contributing to the UN’s Sustainable Development Goals, with a focus on clean water and sanitation (goal 6); life below water (goal 14); life on land (goal 15); and responsible consumption and production (goal 12).
BNN Bloomberg: Texas Comptroller Glenn Hegar says he wants financial services firms to be transparent in their environmental, social and governance rhetoric.
Institutional Investor: Global investors first started pulling back from public markets in China as they tried to navigate markets amid Russia’s invasion of Ukraine. But now private companies in China are feeling the change in sentiment as well.
Business Insider: Bowser, the chief diversity officer at hedge fund Bridgewater Associates, told Insider he was able to build a successful career in financial services at least partly because of the mentorship and sponsorship he received.
Portfolio Adviser: Of all the funds available to investors in the UK, just 214 are run by women. That equates to 2.4%, according to data from Morningstar. Funds whose co-managers are male and female account for 7.5%, meaning 90.1% are run by men.
BNN Bloomberg: Generation Investment Management LLP is warning of the risks associated with a broad-based retreat from emerging markets, as Russia’s war on Ukraine leaves some investors rethinking their exposure.