This Week in ESG and Impact Investing

  📊 May 2025 PPI Overview The PPI for final demand rose 0.1% in May, following a flat reading in April and a 0.2% rise in February.  https://www.bls.gov/news.release/ppi.nr0.htm On a year‑over‑year basis, producer prices increased 2.6% , up slightly from 2.5% in April. The modest monthly gain was driven by a 0.1% increase in final demand services (led by trade margins) and a 0.2% rise in goods prices , while energy remained flat. Excluding volatile categories like food, energy, and trade services, core PPI rose 0.1% in May and 2.7% over the past year. What This Means for Black & Minority-Owned Businesses 1. Trade Services (Retail & Wholesale) 0.4% increase in trade margins squeezed small retailers and wholesalers. Impact: Black and Hispanic-owned firms face higher sourcing costs—further limiting their ability to absorb or pass along price increases. 2. Goods Sector (Food, Metals, Energy) Final demand goods edged up 0.2%, driven by non-...

Connor Stout, left and Gabriel Philipp, right. At the 2025 Politico Energy Summit on June 10th, leading lawmakers, CEOs, policy advocates, and former regulators gathered to dissect the energy future of the United States. Beneath the technical language and party lines, a powerful theme emerged; namely that the U.S. is heading into a period of intensifying energy demand, regulatory turbulence, and geopolitical competition. While consensus formed around some core issues, deep divisions remain over how to meet the moment. The Upcoming Energy Crisis: The unofficial theme of the summit was that the U.S. needs more energy in the upcoming decade. Nearly every speaker touched on the idea that the current energy infrastructure will not be capable of supporting the growth of artificial intelligence, data centers, and onshoring of manufacturing. AI, in particular, dominated the conversation. Industry leaders stressed that without a rapid expansion in power generation the U.S. could lose its techno...

  The CPI for All Urban Consumers rose 0.1% in May (seasonally adjusted), down from 0.2% in April, with the annual inflation rate at 2.4% , up from 2.3% in April. Core CPI ( excluding food and energy ) also saw a 0.1% increase , holding steady at 2.8% year-over-year. Food prices climbed 0.3% , and energy costs dropped 1.0% for the month, driven largely by 2.6% lower gasoline prices. Key service categories like medical care, motor vehicle insurance, home furnishings, personal care, and education posted monthly increases between 0.3%–0.7% , while airline fares and used car prices declined. 🧩 Impact on Minority and Black-Owned Businesses 1. Food & Hospitality Impact: Food price increases (+0.3%) put pressure on grocery stores and restaurants, many of which are Black- and Hispanic-owned. They face rising packaging and ingredient costs. Action: These businesses should diversify suppliers and consider modest menu price adjustments to preserve margins. ...

Jonathan Capehart (Left) and Michele Norris (Right) at the Library of Congress. Photo by Gabriel Philipp On Thursday, June 5, 2025 in the US Library of Congress Thomas Jefferson Building's Great Hall, Pulitzer Prize-winning journalist Jonathan Capehart discussed his memoir, “Yet Here I Am: Lessons from a Black Man’s Search for Home.” Capehart was in conversation with journalist Michele Norris. He discussed his experiences growing up and his path through his career in journalism. I found it an interesting talk that connected to a very personal aspect of my life. Socially Disconnected:  The thing that stuck with me most during the discussion was Capehart’s confession that he felt he didn’t belong in Washington, DC. He went on to talk about his feelings of disconnection from people. He experienced this as an environment where people had their separate groups, and that he felt it was hard to feel connected: if you’re not in the group then there’s only so much you can do to be conn...

Forecast (Black Women) : 6.4% Actual (Black Women) : 6.2% We accurately predicted a rise in the unemployment rate for Black women , but the increase was less severe than expected . The direction of the rate for Black women validates our concerns, even though the rate itself came in below our projection. Key Takeaways from the Data Unemployment Among Black Women : Rose to 6.2% in May 2025 , up from 6.1% in April: Still notably elevated and well above the national average, indicating continued labor market fragility for this demographic. Labor Force Participation : Participation among Black individuals declined slightly—from 62.1% to 62.0%—reflecting growing discouragement and withdrawal from the labor force. Employment Level : Modest gains in overall employment helped cushion what might have been a more dramatic rise in the unemployment rate. However, the nature of this job growth—its quality, sector concentration, and sustainability—remains a concern. For...

President Donald Trump has a history of railing against US economic policy; many of his campaign promises rely on the premise that our economy needs to be fixed. His attempt to fix the US economy through the One Big Beautiful Bill (OBBB) will reportedly increase the deficit by between 3 and 5 trillion dollars. US Representative and Chair of the Joint Economic Committee David Schweikert of Arizona talked with Betty Liu of The Hill (shown in photo, left) on June 4th to address some of the concerns both surrounding the bill and the US economy as a whole. The Economy: According to Rep. Schweikert, the most significant factor driving the growth of U.S. sovereign debt is demographics. As the age group of 65 and older grows due to longer life expectancies and the aging of the Baby Boomer generation, it places enormous strain on federal programs like Medicare and Social Security, both of which are major components of the federal budget. The 65+ population is typically retired, which means they...

Based on the most recent data, the unemployment rate for Black women aged 20 and over increased from 5.1% in March to 6.1% in April 2025, marking the highest level since 2022 . This rise was driven by a loss of 106,000 jobs among Black women during April. Considering these trends, it is plausible that the unemployment rate for Black women remained elevated in May 2025. Factors contributing to this include ongoing reductions in federal employment, rollbacks of diversity, equity, and inclusion (DEI) initiatives, and economic pressures in sectors where Black women are overrepresented, such as retail, healthcare, education, and public services. Black unemployment rates are historically more volatile due to structural labor market inequities, lower wealth buffers, industry concentration, and sensitivity to policy shifts.  Based on the available data and prevailing economic trends, it is reasonable to estimate that the unemployment rate for Black women aged 20 and over in May 2025 likely...

The Trump-backed House Budget Reconciliation Bill, labeled in the graphic as “The Big Beautiful Bill,” dramatically shifts after-tax-and-transfer income in ways that disproportionately harm lower-income Americans — particularly Black Americans, who are overrepresented in the bottom two quintiles due to systemic racial economic disparities. Key Takeaways from the Penn Wharton Budget Model (as of May 20, 2025): 1. Regressive Distributional Impact The bottom 20% (1st quintile) earning $0–$17,000 will see a 13.6% drop in after-tax-and-transfer income, averaging a loss of $940 per person. The second quintile ($17,000–$51,000) sees a 1.3% decline , averaging a loss of $580 . In contrast, the top 1% (incomes above $4.3 million) will gain $390,310 on average , a 3.1% increase . This signals a stark upward redistribution of wealth — a tax-and-transfer policy that cuts benefits and redistributes gains to the wealthy. Impact on Black Americans Black households are dispropor...

The Producer Price Index (PPI) for final demand fell 0.5% in April 2025 , the sharpest monthly drop since April 2020. This decline, driven entirely by a 0.7% fall in final demand services , follows no change in March and a 0.2% increase in February. Over the past 12 months, however, producer prices still rose 2.4% , signaling continued inflationary pressure beneath the surface. Sectoral Impacts on Black and Minority-Owned Firms 1. Service Sectors – Reported Declines May Not Translate to Relief The reported drop in services prices largely reflects compression in trade margins , not reductions in actual operating costs for small business owners. Impact: Minority-owned retail, healthcare, and professional service firms—many of which operate on thin margins—are unlikely to feel meaningful relief. 2. Goods Prices – Flat, Not Falling Final demand goods prices were unchanged , meaning material and inventory costs remain elevated. Impact: Black and minority-owned businesses...

The U.S. Bureau of Labor Statistics reported a 0.2% monthly increase in the Consumer Price Index (CPI) for April 2025, bringing the annual inflation rate down to 2.3%—the lowest in over four years. Core inflation (excluding food and energy) remained steady at 2.8%. While these headline figures suggest that inflation is easing, many Black and minority-owned businesses continue to experience cost pressures across critical sectors such as food, transportation, and housing. Important Note: Ethics Adjusted CPI Given the documented pattern of dishonest and unethical behavior by the current administration, we express serious concern that the CPI data may have been deliberately manipulated downward for political or market-calming purposes. This suspicion is heightened by other economic discrepancies—such as the reported 225,000 job increase in March despite a simultaneous 40,000 rise in Black unemployment—which undermine the credibility of official statistics. Sector-Specific Impacts on Minori...

  Analysis of Black Employment and Unemployment – April 2025 Summary & Overview The April 2025 data reveals a troubling trend for the Black labor force, particularly Black women, who saw a sharp increase in unemployment. Overall, while the Black civilian labor force size remained relatively stable, the number of employed individuals declined by 36,000, and the number of unemployed rose by 29,000. The Black unemployment rate ticked up to 6.3%, continuing a persistent rise from earlier in the year.  Key Findings 1. Black Women, 20 Years and Over Unemployment increased by 106,000 the largest rise of any subgroup Unemployment rate surged from 5.1% to 6.1%, a full 1 percentage point increase, outpacing men and youth. Employment dropped by 38,000, despite an increase in labor force participation (+68,000). This suggests that new entrants to the labor force are not finding jobs, exacerbating joblessness for Black women. 2. Black Men, 20 Years and Over Employment increased (+48,00...

The April 2025 employment data for Black or African American workers reveals a deteriorating labor market for Blacks. The data highlights several key developments: 1. Labor Force Participation The civilian labor force declined by 7,000 people, from 22.196 million in March to 22.189 million in April 2025. The participation rate dipped marginally from 62.2% to 62.1%, continuing a soft downward trend since February. Implication: A declining labor force and participation rate indicate that fewer Black workers are either employed or actively looking for work, suggesting disengagement from the labor market—possibly due to discouragement or systemic barriers. 2. Employment Levels The number of employed Black individuals dropped by 36,000—from 20.826 million to 20.790 million. The employment-population ratio also declined from 58.4% to 58.2%, showing that a smaller share of the Black working-age population is currently employed. Implication: This is a clear sign of weakening employment opportu...

  Credit rating agencies—Fitch, Moody’s, and Standard & Poor’s—are among the most powerful institutions in global finance. Their evaluations affect everything from borrowing costs and investor confidence to the fate of national economies. However, a stark contrast in how these agencies rate African nations versus Western powers, particularly the United States, reveals troubling evidence of systemic bias embedded in the international credit rating regime. The Disparity: African Ratings vs. U.S. Ratings Ghana, Kenya, and Nigeria have received some of the lowest ratings on the credit spectrum. As of 2025: Ghana is rated RD (Restricted Default) by Fitch, SD (Selective Default) by S&P, and Ca by Moody’s. Kenya holds a B or B3 rating—deep in speculative territory. Nigeria hovers just above default at B- or Caa1. Meanwhile, the United States still retains ratings like AA+ (Fitch and S&P) and Aaa (Moody’s), placing it in the safest investment category. This remains the case des...

According to the U.S. Bureau of Economic Analysis (BEA), real gross domestic product (GDP) decreased at an annual rate of 0.3% in Q1 2025, marking the first economic contraction since early 2022. This downturn contrasts with the 2.4% growth observed in the previous quarter. The decline is primarily attributed to a surge in imports—particularly consumer and capital goods—as businesses accelerated purchases ahead of newly imposed tariffs, alongside a decrease in government spending.  Despite the overall GDP decline, real final sales to private domestic purchasers increased by 3.0%, indicating continued strength in consumer spending and private investment. However, the broader economic environment is characterized by rising inflation, with the personal consumption expenditures (PCE) price index increasing by 3.6% in Q1, up from 2.4% in the previous quarter.  Impact on Black-Owned and Minority-Owned Businesses The economic contraction and associated policy changes have significant...

  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...