This Week in ESG and Impact Investing

The announcement that the U.S. Federal Reserve is withdrawing from the Network of Central Banks and Supervisors for Greening the Financial System ( NGFS ) marks a devastating first act under the incoming Trump administration. This decision, ostensibly justified by claims of overreach beyond the Fed's statutory mandate, not only signals a retreat from global cooperation but also echoes the short-sightedness that contributed to the 2008 financial crisis. A Regressive Step at a Critical Time The NGFS was established to integrate climate risk into monetary policy and financial system oversight—an essential initiative given the increasing evidence of climate-related financial instability. Climate change poses systemic risks: hurricanes devastate infrastructure, wildfires disrupt  cities and supply chains, and rising sea levels threaten entire industries. Ignoring these realities makes our financial system more vulnerable. By exiting the NGFS, the Federal Reserve isolates itself from glo...

  The December 2024 Consumer Price Index (CPI) indicates a 0.2% increase from November, contributing to a 2.6% rise over the past 12 months. This inflationary environment presents both challenges and opportunities for minority-owned businesses. Impact on Minority Businesses by Sector Asian-Owned Businesses Relevant Industries: Technology, Professional Services, Retail, Hospitality, and Food Services Technology & Professional Services: Asian-owned businesses in tech and consulting are moderately affected by inflation. Rising operational costs, such as wages and office space, require careful cost management. They can leverage remote work trends and digital platforms to optimize resources. Retail & Hospitality: Higher food costs (+0.2% in December) and shelter costs (+0.4%) directly affect Asian-owned restaurants and hotels. Adopting efficient supply chains and energy-saving measures can help offset these increases. Strategic Insight: Diversifying offerings, such a...

The Employment Situation for December 2024 provides a detailed look at unemployment trends by race, gender, and age, revealing persistent disparities and shifting dynamics across demographic groups. Here’s a breakdown and analysis of the data: Key Highlights: 1. Overall Labor Market:    - Unemployment Rate: Decreased slightly from 4.2% in November 2024 to 4.1% in December 2024, reflecting a modest improvement in the labor market.    - Employment-Population Ratio: Increased by 0.2 percentage points, reaching 60.0%. This suggests that more people found work relative to the total population.   2. By Gender:    - Adult Men: Unemployment decreased from 3.9% to 3.7%, a notable 0.2 percentage point decline, indicating a stronger recovery among men.    - Adult Women: Unemployment declined marginally from 3.9% to 3.8%. While the decrease is smaller, it aligns with the broader labor market recovery.    - Teenagers (16-19 years): Unemployment ...

A lawsuit filed by Andav Capital and its founder, Nisha Desai, against PayPal represents not only a fundamental misunderstanding of the purpose and legality of diversity initiatives but also a bad-faith attempt to weaponize civil rights law against efforts to address historical and systemic inequities.  See:  https://www.linkedin.com/pulse/response-paypal-minority-vc-funding-lawsuit-zbqse/