This Week in ESG and Impact Investing

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...

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...