This Week in ESG and Impact Investing

  In a   well researched and tightly reasoned statement,  the first Encyclical of his Papacy, Pope Francis made climate change a moral issue. This critically important document comes at just the right time: it is sure to reignite debate on what should be a non-debatable issue.  https://www.linkedin.com/pulse/pope-francis-environment-william-michael-cunningham-am-mba/

Reflect on this breathtaking figure: Over $11 trillion has been erased from the nation’s stock market since mid-January of this year. That massive rubout supposedly came just three days before President Donald Trump started his term and has not recovered as much since. More recently, U.S. stocks had their largest two-day loss, $6.6 trillion jointly on April 3 and April 4. The damage has left stockholders, including Black investors, in a precarious position: What should they do as the market moves to bearish territory? Stocks surged on April 8 after Trump approved a 90-day pause on tariffs impacting most countries, per The Wall Street Journal. However, stocks crashed again on April 10 after the White House disclosed the tariff on China is now 145%. There is uncertainty about how stocks will perform subsequently. The unrest is being fueled by fears of a potential global trade war, a possible U.S. recession, and other headwinds. Rising Number of Blacks Investing in Stocks BLACK ENTERPRISE...

The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) for final demand fell by 0.4% in March 2025—the sharpest monthly drop since April 2020. At face value, this suggests easing inflationary pressures on businesses. However, this headline number warrants closer scrutiny, particularly given its divergence from broader economic indicators. This PPI decline comes the same month that the U.S. economy reportedly added 225,000 jobs, a figure that appears inconsistent with other labor market signals, especially the simultaneous increase of 44,000 in Black unemployment. These discrepancies raise legitimate questions about data integrity or seasonal adjustment effects that may be masking underlying weakness. Breakdown by Sector: What It Means for Black and Minority-Owned Firms 1. Food and Hospitality - Reported Change: Final demand food prices declined 2.1%. - Impact: On paper, this provides relief to minority-owned restaurants and food service businesses. Yet, volati...

In March 2025, the Consumer Price Index (CPI) for All Urban Consumers decreased by 0.1% on a seasonally adjusted basis, following a 0.2% increase in February. Over the past 12 months, the all-items index rose by 2.4% before seasonal adjustment. Key Highlights: Energy Prices: A significant contributor to the monthly decline was a 6.3% drop in gasoline prices, leading to an overall 2.4% decrease in the energy index.  Core Inflation: Excluding volatile food and energy components, the core CPI increased by 0.1% in March and 2.8% over the past year, down from 3.1% in February.  Implications for Minority-Owned Businesses: 1. Transportation and Logistics:     Impact: The decline in gasoline prices offers temporary relief in operational costs for minority-owned businesses in transportation and delivery services.     Consideration: Given the volatility of energy prices and potential future tariff impacts, businesses should strategize for possible cost increases. 2. ...

  The recent anti-Diversity, Equity, and Inclusion (DEI) initiatives and the imposition of broad tariffs share underlying themes that disproportionately affect non-white and marginalized communities, both domestically and internationally. These policies can be examined through the lens of systemic racism, as they often reinforce existing inequalities and hinder efforts toward racial and economic justice. https://www.linkedin.com/pulse/tariffs-anti-dei-backlash-twin-pillars-racist-anti-democratic-3hrze

There’s a persistent delusion running through America — a dangerous belief that Donald Trump will eventually defeat himself ("the fever will break"). That he’ll do the wrong thing, lose the wrong case, or take it too far and implode. That if we don’t “amplify” his chaos, the system will self-correct...and that demonstrations matter... But it won’t and they don't. Because this isn’t just about Trump the man — it’s about the authoritarian movement he leads and the institutions he’s hollowing out. And the reality is this: hands-off won’t work. Not now. Not ever.  READ MORE.

The March, 2025 uptick in Black unemployment raises significant concerns, particularly in light of substantial job cuts within the government sector. Our analysis shows two things: 1. Research suggests these layoffs have disproportionately affected Black workers, exacerbating existing economic disparities. 2. In light of the decline in Black unemployment, the report of an additional 225,000 jobs being added is suspect. In March 2025, the unemployment rate for Black workers increased to 6.2%, up from 6.0% in February. This results in an increase of approximately 44,392 individuals from February to March 2025. The rise aligns with projections made last month by Creative Investment Research, which anticipated that Black Americans would lose approximately 78,000 jobs between January and February, primarily due to reductions in government employment. https://www.blackenterprise.com/report-black-folks-could-make-up-almost-80k-of-employees-out-of-work-after-february-job-cuts-primarily-in-gov...

In February 2025, Trump announced tariffs targeting imports from Mexico, Canada, and China, claiming to bolster domestic manufacturing and address trade imbalances. These tariffs included a 25% duty on goods from Mexico and Canada and a 10% duty on Chinese imports. Such measures were projected to significantly impact Black and minority-owned businesses , which often rely on cost-effective supply chains and imported goods. (See:  https://www.impactinvesting.online/2025/02/trumps-tariffs-heavy-blow-to-black-and.html )  Since then, the administration has expanded its tariff strategy. On April 2, 2025, Trump declared "Liberation Day," introducing a 10% baseline tariff on all imports, with higher rates for specific countries. For instance, imports from China now face a 34% tariff, while those from the European Union are subject to a 20% tariff. These tariffs are set to take effect on April 5, 2025. ​ Implications for Black and Minority-Owned Businesses: Escalating Operational Cost...

On April 3, 2025, the U.S. stock market experienced significant declines following the announcement of new tariffs by President Donald Trump. The Dow Jones Industrial Average fell by 1,531 points (3.6%), with Nike and Amazon.com Inc. leading the downturn. Nike's stock dropped $8.19 (12.6%), and Amazon's declined $18.73 (9.6%), together contributing approximately 165 points to the Dow's decline. The S&P 500 also saw a substantial decrease of 3.9%, with consumer discretionary and technology sectors being the hardest hit.  In light of these developments, Black investors may consider the following strategies to navigate the current economic landscape: 1. Prioritize Financial Planning and Education Building a solid financial foundation is crucial during periods of economic uncertainty.  Engaging with financial professionals who can provide tailored advice and act as financial "coaches" can enhance financial literacy and confidence in investment decisions. This app...

The unemployment report for March 2025, to be released on Friday at 8:30 am, is anticipated to reflect a significant spike in Black unemployment, building upon trends identified earlier this year. Our previous forecast, which initially expected unemployment spikes earlier in the year, was ahead of schedule, as employment losses among Black workers in government and public-sector jobs took slightly longer to materialize. According to our latest forecast for February 2025, out of a civilian noninstitutional Black population of approximately 35.6 million, about 22.1 million were participating in the labor force. At that point, around 20.7 million Black individuals were employed, resulting in an employment-population ratio of 58.1% and implying approximately 1.4 million unemployed Black workers. Given the significant February job cuts predominantly in the government sector, as  highlighted by the Black Enterprise article citing our report , it is expected that these cuts will become fu...

  The Personal Consumption Expenditures (PCE) price index for February 2025 increased by 0.3% from the previous month, with the core PCE index—which excludes food and energy—rising by 0.4%.  These figures suggest an uptick in inflation, which has implications for Black and minority-owned businesses. Impact on Black and Minority-Owned Businesses: 1. Increased Operational Costs: A 0.4% rise in the core PCE index indicates that the prices of goods and services, excluding food and energy, have edged higher. For minority-owned businesses, especially those operating with limited financial buffers, this can lead to increased costs for supplies, utilities, and other essential services, potentially squeezing profit margins. 2. Consumer Spending Behavior: While the overall PCE increase was 0.3%, the core inflation rate suggests that consumers might experience higher prices in various sectors. This will lead to more cautious spending behaviors, impacting revenues for businesses that rely...

Future Of CDFI Fund And MBDA, Uncertain With Their Planned Ouster: Axing the federal agencies could lessen Black businesses' ability to access capital and grow revenues. The Community Development Financial Institutions Fund (CDFI Fund) has invested over $8 billion through various monetary award programs, helping underserved people and communities. The Minority Business Development Agency (MBDA) helped wrap up $3.8 billion in contracts for minority businesses in 2023. That drive is significant as it can help those firms, including Black-owned businesses, to scale up and potentially fuel revenue growth. However, the downside now is the CDFI Fund and MBDA — deep-rooted and bipartisan supporters of Black entrepreneurs and individuals, among others — are being cut by President Donald Trump. https://www.blackenterprise.com/future-cdfi-fund-mbda-uncertain-ouster/

It’s time for investors to step back and take a hard look at where the U.S. economy is heading—and the picture is not pretty. In fact, it’s downright terrifying. Donald Trump’s return to the political stage has not only rattled the global order but pushed the U.S. economy to the edge of a fiscal cliff. With a toxic cocktail of economic incoherence, erratic policy, and raw political chaos, the U.S. stock market has become a playground for what I call financial arsonists—the so-called "chaos monkeys" who thrive in the wreckage of responsible governance. Let me be blunt: U.S. stocks are a no-go zone. Radicalism Meets Recklessness Trump is no longer just flirting with radical economic policy—he’s embracing it with both hands, slamming the accelerator on trade wars, dismantling regulatory frameworks, and attacking the institutions that once underpinned American prosperity. He has gutted traditional alliances and dismantled the foundational tenets of post-World War II economic stab...

Recent executive orders aimed at downsizing essential government agencies such as the Minority Business Development Agency (MBDA) and Community Development Financial Institutions Fund (CDFI Fund) present serious risks to non-minority-owned businesses, local economies, and national economic stability. We have completed a comprehensive economic analysis, summarized below and  urgently needed to highlight the full scope of these risks. Economic Risks to Minority-Owned Businesses Minority-owned businesses significantly contribute to the national economy by creating jobs, fostering innovation, and promoting community development. Reducing or eliminating support from critical agencies like MBDA and the CDFI Fund directly threatens these businesses, leading to: Reduced Access to Capital: Funding shortages severely limit growth and sustainability. (Estimated Loss: $450 million) Loss of Technical Assistance: Business development support, including strategic guidance and capacity building, ...

In February 2025, the Producer Price Index (PPI) for final demand remained unchanged (seasonally adjusted), according to the U.S. Bureau of Labor Statistics. While stable overall, the underlying data reveals critical developments in specific sectors significantly affecting Black and minority-owned businesses. Sector-Specific Impacts on Minority Businesses Retail and Wholesale (Black and Hispanic-Owned Businesses) Key Insight: Prices for final demand services fell 0.2% in February, driven by decreased margins in retail and wholesale trade—specifically machinery and vehicle wholesaling (-1.4%) and food and alcohol retailing. Impact: Black and Hispanic-owned businesses in auto retail, apparel, and food retailing face tighter profit margins. Lower wholesale margins can squeeze profitability, particularly for small businesses operating with already narrow margins. Strategy: Businesses should optimize inventory and seek direct relationships with suppliers to minimize intermediary costs and m...

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% in February 2025 on a seasonally adjusted basis, following a 0.5% increase in January. Over the past 12 months, the all-items index increased 2.8% before seasonal adjustment. The index for all items less food and energy rose 0.2% in February and is up 3.1% year-over-year. Inflationary pressures continue at a higher than 2% target level rate. Cost increases in shelter, transportation, and services continue to affect minority-owned businesses across various industries. Industry Analysis: 1. Retail & Consumer Goods (Black and Hispanic-Owned) Impact: Food at home prices were unchanged, but food away from home rose 0.4%, indicating ongoing cost pressures for restaurants and hospitality. Apparel rose by 0.6%, potentially affecting profitability positively for minority-owned retail businesses specializing in clothing and personal accessories. Strategic Advice: Retailers must balance pricing strategies carefully, considerin...

  Over the past three days, financial markets have been rocked by sharp declines , triggering fears of an economic slowdown and reigniting discussions on the fragility of our financial system. While traditional analysts focus on technical indicators, Federal Reserve policy, and corporate earnings reports, impact investors must look deeper. We see this moment as an opportunity to reassess how capital is allocated, who benefits, and what structural reforms are necessary to create a market that serves broader societal needs, rather than just the wealthiest stakeholders. The Root Causes: Beyond the Headlines Much of the recent decline has been attributed to geopolitical tensions. While these are significant factors, they fail to capture the broader systemic weaknesses that have been present for years: Overleveraged Growth – The market has long been propped up by artificially low interest rates and speculative investment rather than sustainable, impact-driven business models. Wealth Con...

Early: Our February 2025 Unemployment Forecast The February 2025 Employment Situation report from the Bureau of Labor Statistics (BLS) showed a total nonfarm payroll employment increase of 151,000 jobs and a stable unemployment rate of 4.1%. However, our forecast, as published on Impact Investing Online , still anticipates a worsening employment situation by March 2025. Below, we note how our early projection remains valid despite the Feb. BLS data. Survey Timing and Lagging Indicators The BLS employment survey captures data up to February 15, 2025. This means that recent economic developments, corporate layoffs, and market slowdowns that occurred in the latter half of February are not reflected in the reported numbers. Our forecast accounts for these expected deteriorations, which have yet to fully materialize in official statistics but are likely to be evident in the March report. Sectoral Employment Trends and Declining Federal Employment The February report shows job gains in healt...

The Internal Revenue Service holds a massive trove of sensitive data about American taxpayers that would be of inestimable value to a company operating in the private sector. Protecting it is a matter of national security, writes William Michael Cunningham. Banks and financial institutions should be especially alarmed by the possibility of exploitation of government financial data by the so-called Department of Government Efficiency, or DOGE, led by billionaire Tesla Founder Elon Musk. This isn't merely a regulatory or privacy issue — it strikes at the heart of the financial system that banks depend on for stability and accurate credit assessments. Reliable data is critical for risk management, lending decisions and maintaining consumer confidence. When such data is misappropriated, it can distort market signals and upend established financial practices. At the core of this crisis is a dataset of staggering value. The IRS' comprehensive historical record — encompassing income, ...

Report: Black Folks Could Make Up Almost 80K Of Employees Out of Work After February Job Cuts, Primarily In Government Sector Black workers overrepresented in the public sector are more vulnerable to job losses.  https://www.blackenterprise.com/report-black-folks-could-make-up-almost-80k-of-employees-out-of-work-after-february-job-cuts-primarily-in-government-sector/

The recent ADP National Employment Report reveals that private sector employment increased by 77,000 jobs in February 2025, marking the smallest gain since July 2024 and falling significantly short of the anticipated 140,000 jobs.  Sector-Specific Performance: • Goods-Producing Sector: Added 42,000 jobs, with construction contributing 26,000 and manufacturing 18,000.  • Service-Providing Sector: Gained 36,000 jobs. Notably: o Leisure and Hospitality: Increased by 41,000 jobs. o Professional and Business Services: Added 27,000 jobs. o Trade, Transportation, and Utilities: Decreased by 33,000 jobs. o Education and Health Services: Declined by 28,000 jobs. o Information Sector: Reduced by 14,000 jobs. Implications for Unemployment Rates: Given this slowdown, the unemployment rates for February 2025 are projected as follows: • Overall U.S. Unemployment Rate: Expected to rise from 4.0% in January to 4.2%. • Black Unemployment Rate: Projected to increase from 6.4% ...

Creative Investment Research has revised its February 2025 unemployment forecast ahead of the March 7, 2025, Bureau of Labor Statistics (BLS) report, incorporating worsening economic conditions reflected in the latest Atlanta Federal Reserve GDPNow projections. The U.S. economy is now expected to shrink by 2.8% in Q1 2025, a sharp downward revision from -1.5% just days earlier, signaling deeper-than-expected economic contraction and potentially accelerating job losses across key industries. The latest data show that personal consumption expenditures growth has fallen to 0.0%, indicating a near standstill in consumer spending, while private fixed investment growth has dropped to 0.1%, reflecting a sharp pullback in business investment. These factors are expected to have a direct impact on the labor market, leading to a more pronounced rise in unemployment than initially forecast. Revised Unemployment Forecast for February 2025 1. Overall Unemployment Rate Likely to Rise to 4.2% An inc...

On February 24, 2025, French President Emmanuel Macron visited Washington, D.C., for high-stakes discussions with U.S. President Donald Trump. The visit came on the third anniversary of Russia’s invasion of Ukraine, a conflict that continues to shape global security and economic policies. While both leaders expressed a shared desire for peace, their approaches differed significantly, particularly regarding the role of Europe and the economic implications of ending the war. 1. The Ukraine Peace Process Macron emphasized that any peace agreement should be fair and verifiable, rejecting a rushed settlement that could leave Ukraine vulnerable to future aggression. He insisted on a sustainable resolution that preserves Ukraine’s sovereignty and ensures long-term stability in Europe. Macron also reiterated France’s support for increased European defense spending, urging European nations to take greater responsibility for their own security rather than relying solely on U.S. military support....