Companies and investors are increasingly engaging on sustainability. The recent moves on climate issues made by Royal Dutch Shell, Glencore, and BP show how investor pressure (and in particular the Climate Action 100+ investor group) is helping shape corporate behavior. Last month, for the first time in its 30-year history, the nonprofit sustainability organization Ceres
Consumers are increasingly focusing on sustainability when making purchasing decisions, according to research by the Center for Sustainable Business at NYU Stern. Their analysis shows that 50% of the growth in sales of consumer packaged goods in the last five years came from purchases of products marketed as ‘sustainable’.
As consumers move away from single-use plastics, Coke and Pepsi are starting to embrace a ‘bring your own bottle’ business model, particularly on college campuses.
A recent study by CDP, formerly known as the Carbon Disclosure Project, reveals that some of the largest companies in the world expect climate change to pose a trillion dollar financial burden to their businesses. And, many of those effects are expected to be felt within the next five years.
The impact of ESG ratings on companies’ cost of capital is on the rise. According to Bloomberg New Energy Finance, $32 Billion in loans are now tied to ESG ratings. That’s up from $3 Billion just two years ago. However, the data is still controversial and inconsistent, as the ratings don’t necessarily reflect actual performance
A 2017 study reported that companies with the highest ESG ratings outperformed the lowest-rated firms by as much as 40%. In 2018, Bank of America Merrill Lynch observed that “firms with a better ESG record than their peers produced higher three-year returns, were more likely to become high-quality stocks, were less likely to have large
Berkeley, California is requiring coffee shops to charge a 25-cent fee per disposable cup to encourage people to produce less plastic waste.
Decreasing meat consumption will not have as large an impact on the environment as many believe. Meat production does not generate more greenhouse gases than the transportation sector, and the continuation of meat consumption is necessary to sustain the increasing world population.
The privatization of academic programs leads to an increase in profits, and an increase in inequality among those who can attend college. Online colleges, if not for their high prices, could have lessened inequality within the higher education system.
Is corporate America more ‘scandal-prone’ than Europe? An interesting piece by the Economist suggests this is the case, and thus far the ‘financial cost’ to the companies involved has been limited. “The total market value of American firms involved in big incidents that have become public since 2016 is $1.54trn. At least 200m consumers have
U.S. offshore wind is a $68 million dollar investment opportunity that suppliers are poised to benefit from.
McKinsey offers a ‘roadmap’ to close the $12,000 electric vehicle profitability gap for car manufacturers.
An energy study shows that a business-led transition to renewable energy could sustain an economy with a net cost less than that of business-as-usual.
According to a recent report, New York City’s buildings are responsible for two thirds of the city’s greenhouse gas emissions. In pursuit of the goal to reduce emissions by 40% by 2030, the City Council is attempting to pass legislation placing an emissions cap on many large buildings, including the Empire State Building.
As renewable alternatives become more affordable, large corporations, such as Exxon, are shifting towards them.
Inherent Foundation helped create and invested in an innovative financing structure called Pursuit Bonds, which are helping provide workforce training to those with great potential and great need via the Pursuit organization. ‘So far, the graduate placement rate exceeds Inherent’s assumptions, the default rate is lower, and the average salary of the repaying graduates is
This is one of the first ‘sustainable improvement loans’ in the U.S., whereby sustainability performance is tied directly to the cost of capital. Xylem is a global water technology company.
The European Parliament and European Union countries agreed in March on sustainable investment disclosure rules for institutional investors, which will require money managers to integrate environmental, social and governance factors into their investment decisions and disclose how they are doing so.
Increasingly, both investors and companies are waking up to the costs and inefficiencies caused by the short-termism of capital markets
Companies will face a record number of climate-related shareholder proposals this proxy season.