Investors keeping an eye on ESG

The E in ESG ?curates the week’s latest?#sustainability ?news; focusing on regulatory developments, innovation, and the intersection of?#environmental ?and organizational best practices.

This week's Newsletter includes:

• Invest in Emerging Markets With an Eye on ESG
• New IBM Study Reveals Inadequate Data Hinders Progress Against Environmental, Social and Governance Goals
• Net-Zero Commitments to Carbon Offsets: Current Trends in Corporate Sustainability
• Anti-ESG Might be Over Before it Even Got Going
• The rise and rise of ESG in the pharmaceutical sector – is a zero-waste supply chain possible?
• Why millions of usable hard drives are being destroyed
• Court Greenlights Greenwashing Case Against KLM
• Shell’s latest greenwashing ad ban marks a tipping point for big oil’s eco campaigns
• Why Puma is launching a sustainability podcast

?? Emerging Markets & ESG Investment Spotlight ??

• ?? Emerging markets (EM) are incorporating Environmental, Social, and Governance (ESG) principles, as evident in the Avantis Responsible Emerging Markets Equity ETF (AVSE).
• ?? The global shift toward sustainable energy is pushing EM countries to set net-zero goals and adopt ESG principles for competitiveness and resilience.
• ?? Recent research by Boston Consulting Group (BCG) indicates a strong correlation between EM companies' ESG scores and key financial metrics.
• ?? AVSE, with over 2,000 equities, focuses on value, future profitability, and ESG metrics while screening out companies that don’t comply with its ESG focus.
• ?? AVSE’s cost-effectiveness is highlighted by its 0.33% expense ratio, making it an attractive option in times of high inflation.

#EmergingMarkets #ESG #Investment #Sustainability #AVSE

?? IBM Study Highlights Data Gaps in ESG Goals ??

• ?? 41% of executives identify inadequate data as the primary barrier to achieving Environmental, Social, and Governance (ESG) goals.
• ?? 74% of executives believe stakeholders are aware of their ESG objectives, but only 41% of consumers feel they have enough data for sustainable purchasing decisions.
• ?? 76% of executives see ESG as central to their business strategy, with 72% viewing it as a revenue enabler.
• ?? Consumers value environmental sustainability (68%) and social responsibility (65%), but lack sufficient information for informed choices.
• ??? The study suggests automating ESG processes, using AI for insights, aligning with partners on ESG metrics, and establishing data governance principles.

#IBMStudy #ESG #DataGaps #Sustainability #CorporateResponsibility

?? Green Initiatives & Corporate Sustainability ??

• ?? Renewable Energy Commitments Surge: Companies are increasingly embracing renewables; RE100 membership has soared and US corporate power purchase agreements (PPAs) hit a record 19.9 GW in 2022.
• ?? Carbon Offsets Gain Traction: As companies set net-zero targets, carbon offsets are in vogue. Yet, there are rising concerns over verification standards and permanence.
• ?? US Incentives & Challenges: The Inflation Reduction Act of 2022 propels renewable energy development in the US, but supply chain issues, regulatory risks, and high costs remain obstacles.
• ???? EU’s Ambitious Goals: Through the EU Green Deal, the European Union is working towards reducing GHG emissions by at least 55% by 2030, encompassing energy, transport, agriculture, and buildings.
• ?? Stricter EU Reporting Requirements: The Corporate Sustainability Due Diligence Directive will impose additional reporting mandates on European companies, coupled with ambitious emissions curtailment targets via the EU Emissions Trading System.

#CorporateSustainability #RenewableEnergy #CarbonOffsets #NetZero #ESG

?? Exploring Anti-ESG Fund Trends ??

• ?? Peak in Q3 2022: Anti-ESG funds, contrary to sustainable investing, reached their zenith in Q3 2022 with $376 million inflows, largely driven by Strive's inaugural fund.
• ?? Five Shades of Anti-ESG: These funds can be categorized into five types - Anti-ESG, Political, Renouncer, Vice, and Voter.
• ? New Kids on the Block: The majority of anti-ESG funds are relatively new, having been established mainly within the past two years.
• ??? Strive Takes a Stand: Strive's funds, falling under the Voter category, have persistently contested ESG shareholder resolutions in S&P 100 companies.
• ? Questionable Future: With one of the funds recently filing for liquidation, doubts are emerging regarding the long-term viability of anti-ESG strategies.

#AntiESG #InvestmentTrends #SustainableInvesting #FinanceNews #StriveFunds

???? The Rise of #ESG in Pharma Sector

• ?? Increasing Focus: The #pharmaceutical industry is intensifying its efforts towards environmental, social, and governance (ESG) goals. Companies like AstraZeneca and Pfizer are setting ambitious targets for carbon neutrality.
• ?? Data-Driven Evidence: Social media discussions on environmental topics by pharma influencers are increasing, and references to environmental sustainability in company filings rose by 114% in Q1 2023, compared to Q4 2022.
• ? Gap Between Intent and Action: While commitments are growing, a survey shows a gap between rhetoric and concrete action, with investment in expertise and technology being a significant challenge.
• ?? Leveraging Tech for Sustainable Supply Chains: New supply chain management platforms are using IoT devices for live monitoring of shipments, bolstering efficiency, and reducing environmental impact, aligning with the industry's sustainability emphasis.
• ?? Partnerships for Success: Companies like Controlant are setting benchmarks in reducing greenhouse gas emissions and waste in pharma supply chains, bridging the gap between commitments and actions for a more sustainable, zero-waste supply chain.

?? Millions of hard drives are shredded yearly despite being reusable, due to data security concerns.

?? Circular Drive Initiative (CDI) promotes secure reuse of storage devices, stating that shredding isn't the only way to ensure data safety.

?? Purging: CDI suggests purging as a secure method for data sanitization, rendering data recovery practically unfeasible.

?? Seagate initiative: Seagate, a CDI founding member, refurbished 1.16 million drives in 2022, avoiding over 540 tonnes of electronic waste.

?? Rigorous processes: Companies should have a rigorous decommissioning process to ensure data security before reuse or recycling.

?? Security researchers: can be engaged to validate the sanitization of devices before they are put back into circulation.

?? Moving away from the linear economy: This approach helps in moving away from the traditional 'take-make-waste' linear economy.

?? Dutch court allows lawsuit against airline KLM to proceed, challenging its "Fly Responsibly" ads for alleged greenwashing.

?? Environmental non-profits argue KLM ads create a false impression of sustainability and violate EU consumer law.

?? The lawsuit claims KLM's climate solutions like using biofuels are insufficient and its net-zero target by 2050 contradicts growth plans.

?? It also challenges KLM’s CO2ZERO offering that suggests emissions can be offset through planting trees as misleading.

?? This is part of a growing trend of legal actions against companies in carbon-intensive industries over greenwashing claims.

?? UK ad regulator ASA bans Shell's latest ad for misleading consumers about its green energy focus.

?? The ban marks a tipping point, warning energy companies against "greenwashing" - making exaggerated eco-friendly claims.

?? Shell argued the ad was for its cleaner energy division "Shell Energy," but ASA ruled consumers don't differentiate between Shell entities.

?? This ruling is part of an increasing scrutiny on energy firms' ads, aiming to ensure they don't misrepresent progress in cutting emissions.

?? Ad agencies partnering with big energy companies must now navigate evolving greenwashing regulations and weigh potential reputational costs.

?? #Puma Launches #Sustainability Podcast for Gen Z????

?? Engaging Content: Puma introduces Re:Gen Reports, a podcast aiming to demystify sustainability, featuring voices from young environmentalists and industry experts.

?? Meeting Audience Demands: The podcast is developed to make sustainability language and discussions more accessible, after feedback highlighted the complexity of the language in sustainability communications.

?? Social Media Rollout: With the primary target audience being young individuals, Puma is leveraging social media, featuring podcast participants and tapping into platforms that resonate with Gen Z.

?? Diverse Voices: The podcast includes global perspectives, featuring contributors from Malaysia, India, Hong Kong, the UK, and the US, ensuring a broad range of insights and experiences.

?? Measuring Success: The success of Re:Gen Reports will be gauged by downloads, social media engagement, and the conversations it sparks as it sets a new standard in making sustainability accessible to young audiences.

#GenZ #Environmentalism #CorporateResponsibility #Innovation #EducationalContent

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