Skip to main content

Webinar: ESG Investing and Market Pricing. Ayumi Mori, Seikei University, Musashino-shi, Tokyo, Japan


The speakers for this March 7th webinar event were Ms. Ann-Maree Tippoo, ESG Investment Portfolio Manager at Ninety One and professor Satayjit Bose, Professor of Practice; Associate Director, Program in Sustainability Management, Columbia University. The main focus was to identify key drivers for sustainability and to determine whether traditional investors understand or are interested in sustainability. A final goal was to see if an ESG lens can help investors identify places where markets might be mispricing assets or projects.

To start, they defined the current controversy in ESG. Professor Bose suggested the controversy was due to multiple definitions of ESG. These depend on how some people see ESG. He explained ESG is about defining what non-financial factors are and how these make it possible for sustainably generate returns. This democratic approach makes ESG factors unratable since they differ from investor to investor. 

Next, they moved onto the issue of identifying mispricing. A key question concerns the ability of an investor and whether they're educated for this change in approach. The speakers explained that, as mentioned above, ESG can mean various things to various people but it is essential parts of investing now and growing. This presages future difficulty due to ESG rapidly shifting with global issues, and the lack of consistency along different ESG strands. They also highlighted the need to change the analytical monoculture to look beyond the 5 years time horizon, typically the longest time period used by investors now in order to incorporate environmental and other ESG effects.

Lastly, they expressed the importance of incorporating ESG to people’s investment styles and that a solid definition of ESG will make discussion easier. They also stated that government action is necessary. However, they recognized the importance of intervening specifically to allow more flexibility for investors. They closed by speaking about the probability that pension funds will be the primary type of investor looking far into the future, changing investment timelines and perspectives to a longer term, providing the change we need to make ESG work


Labels:

Popular posts from this blog

Maternal Health Financing Facility for Black Women: A Solution to an Urgent Problem

Maternal mortality is a significant issue in the United States, with Black women disproportionately affected. Research conducted by the Centers for Disease Control and Prevention (CDC) has shown that Black women are more likely to die from pregnancy-related causes than their white counterparts. However, the issue is not new, and despite the increasing amount of data available, the disparities have remained unaddressed for far too long.  Creative Investment Research (CIR) is among the organizations that believe there is a solution to the problem. Through our proposed impact investing vehicle , the Maternal Health Financing Facility for Black Women (MHFFBW), we aim to tackle the mortality gap and support Black women during childbirth, which will, in turn, benefit their communities. The Facility, based on legally binding financing agreements containing terms and conditions that direct resources to individuals and institutions capable of addressing supply-side conditions at the heart...
Read more

Kamalanomics: Home and Health

Vice President Kamala Harris recently unveiled her economic plan, which builds upon and expands several initiatives from the Biden administration while adding new elements aimed at addressing economic challenges faced by American families. Her plan, dubbed the "Opportunity Economy" agenda, focuses on lowering costs for essential goods and services, particularly targeting housing, healthcare, and groceries. Key Components: 1. Housing: Harris proposes constructing three million new homes to address the housing supply crunch, which is more ambitious than Biden's two-million-home plan. She also advocates for a $40 billion "innovation fund" to encourage local governments to find solutions to housing shortages and make it harder for investment companies to buy up large numbers of rental properties, which has driven up rent prices. (See: Comments to the CalPERS Board of Administration, July 15, 2024 on Housing and Environmental Investing.) 2. Healthcare: Expanding on B...
Read more

Projected Impact of Gun Laws on Corporate Profits in Texas

More Fortune 500 companies are located in Texas than in any other state. Texas successfully used low taxes and minimal regulations as bait to recruit companies like Tesla and Oracle. The state promoted these “advantages” in ads highlighting their “free-market” environment and criticizing the "tax and spend policies of liberal leadership" in Democrat-run states. Four million people migrated to Texas over the past ten years. Our economic models predict a reversal, however. State of Texas corporations on the Fortune 1000 list generate $2.2 trillion in revenue, $158 billion in profit. They have a market value of $3.8 trillion and employ 2.5 million people nationwide. We continue to believe this increased corporate presence in Texas imposes a tax on the nation as a whole. Texas allows anyone 21 or older to carry handguns without training or licenses, and maintains lower gun purchase age limits. Beyond the recent abortion bill, which allows people to sue those who "aid and abe...
Read more