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Showing posts from May, 2022

General Theory of ESG Investing

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  WASHINGTON - May 22, 2022 - PRLog -- Controversies surrounding climate change, diversity, reproductive rights, and other issues have generated significant attention and confusion. We anticipate this uncertainty and volatility will continue. William Michael Cunningham founded Creative Investment Research in 1989 to facilitate a style of investing that is concerned with the issues cited above after recognizing the inability of traditional investment styles to protect and further human needs. We are one of the premier firms in understanding and analyzing Environmental, Social and Governance (ESG), Corporate Social Responsibility (CSR), and impact investing trends. We have been guided by our General Theory of ESG Investing, a portion of which we have published today. As defined in our paper, "Environmental, social, and corporate governance investing is a decision-making process concerning the purchase, sale and management of an asset or assets selected with the goal of attaining an

Climate Change and HSBC

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“Climate change is not a financial risk that we need to worry about..there’s always some nut job telling me about the end of the world.” Banks are “neglecting more pressing problems in order to consider climate risks. I work at a bank that is being attacked by crypto, we’ve got regulators in the US trying to stop us, we’ve got the China problem, we’ve got a housing crisis looming, we’ve got interest rates going up, we’ve got inflation coming down the pipes, and I’m being told to spend time and time again looking at something that is going to happen in 20 or 30 years hence, the proportionality is completely out of whack. Humanity should be focused on adapting to a changing environment” “Who cares if Miami is six meters underwater in 100 years, Amsterdam’s been six meters underwater for ages, and that’s a really nice place. We will cope with it.” Stuart Kirk, HBSC (Fined $6,512,909,407 since 2000) - Head of Responsible Investing

Musk is as Wrong as S&P

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According to news reports, "Tesla CEO Elon Musk blasted ESG investing as a 'a scam' after his electric vehicle company was booted from a top index of socially responsible companies over labor practice concerns. " Musk also stated that "that Standard and Poors.. lost its 'credibility' by pulling Tesla from its index of companies that meet environmental, social and governance (ESG) criteria, while leaving oil giant #exxonmobil on the list. " He is, of course, correct. S&P was fined $1.5 billion for falsifying mortgage security ratings in the years leading up to the 2008 financial crisis. Their credibility, such as it is, has been available for purchase for decades. We know what they are. Mr. Musk's complaints are driven by self interest, however, not by concern for the well being of society. As such, his concerns are as invalid as S&P's ESG ratings. Note that this does not mean S&P is wrong about Tesla. ESG data is easily manipul

FEDERAL AGENCY EQUITY ACTION PLANS

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Federal Agency Equity Actions Plans Compiled with Biden Executive Order.  https://www.amazon.com/gp/product/B0B11LLRG3/ref=dbs_a_def_rwt_bibl_vppi_i2

9th Annual Conference on Financial Market Regulation (CFMR 2022)

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The Division of Economic and Risk Analysis (DERA) at the US Securities and Exchange Commission (SEC) held the 9th Annual Conference on Financial Market Regulation on May 6, 2022. Co-hosted by Lehigh University’s Center for Financial Services (CFS), University of Maryland’s Center for Financial Policy (CFP), and CFA Institute, the conference brought academic participants together to discuss topics of interest and relevance to the SEC. Chief Economist Jessica Wachter opened the conference,  followed by comments from SEC Chair Gary Gensler and a keynote by SEC Commissioner Allison Herren Lee, appointed by the prior president. The conference highlighted a continuing lack of securities market regulatory capacity. While we appreciate the desire many SEC employees have to protect the public, we note that, for the most part, the SEC remains an ineffective public interest regulator. Their lack of regulatory effectiveness and the securities industry greed cost the nation $19.2 trillion in the ye

Update on Seaweed Farming by Evan Li, Impact Investing Intern. Charlotte Latin School

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Founded in 2003, the Alaskan Native Conservancy is a Native-led organization that seeks to “protect and preserve endangered habitats and traditional food sources…while at the same time counteracting climate change…. and…strengthen[ing] Native Alaskans’ inherent rights.” It is living proof that seaweed farming can both empower marginalized communities and solve climate change. CIR has already previously discussed both the environmental impacts and economic viability of seaweed farming, so I will not focus on them here. Rather, I will explore how seaweed farming, specifically used by the Alaskan Native Conservancy, has served indigenous communities.  The Alaskan Native Conservancy recognizes that the “major barrier to entry into the kelp mariculture industry” is access to parent kelp seed stock. Seed stock is necessary, the Alaskan Native Conservancy claims, to establish a healthy network of kelp farms in Prince William Sound. Their model for portable kelp seed nursery operations enable

Treasury Secretary Janet Yellen's Surprise Visit to American University to Speak on the Future of Cryptocurrency and the Government’s Role in it. Kalel Carkeek, Impact Investing Intern, American University.

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  Yellen beings with the recently signed Executive Order by President Biden. She states, “digital assets have grown explosively reaching a market cap of $3 trillion last November from $14 billion just five years prior.” As a student at American University, I find it shocking that this was the first time anyone this big in government has given a speech at my university. Usually, we are overshadowed by our rival Georgetown, but Secretary Yellen made an impact on the students of American with her speech on the future of cryptocurrency.   Certain cryptocurrencies like Bitcoin have remained volatile, but with USD backed stable coins the application of Central Bank Digital Currencies could be successful. Yellen stresses the importance of responsible innovation guided by the governments six policy objectives: • Protect consumers, investors, and businesses • Safeguard financial stability from systemic risk • Mitigate national security risks • Promote US leadership and economic competit