This Week in ESG and Impact Investing

In recent discussions surrounding Diversity, Equity, and Inclusion (DEI) and Environmental, Social, and Governance (ESG), a faulty narrative has gained traction, painting these efforts as ideologically driven movements destined for failure. This perspective oversimplifies and misrepresents the complex history and goals of DEI and ESG.  Firstly, the historical roots of DEI are often overlooked. Contrary to claims that DEI is a recent or ideologically monolithic movement, its origins trace back centuries, notably to the Quakers in 1650 who opposed slavery. This long history challenges the notion that DEI is merely a modern ideological construct, instead highlighting it as an evolving response to enduring social injustices. The assertion that DEI is an infiltration of Marxist ideology into institutions is another false oversimplification. DEI initiatives are not about enforcing a uniformity of thought. Rather, they seek to address systemic inequities and foster an environment where di...

COVID-19 has forever altered standard business practices. Prior to recent events, Environmental, Social, and Governance efforts have been an afterthought. But the global pandemic demonstrates the fundamental role that ESG plays in corporate investments. The presentation focused on three main points: corporations’ social responses and disclosures to stakeholders regarding ESG factors, how investors incorporate ESG factors into business decisions, and how this crisis will affect what happens next. The first speaker, Martin Whittaker, is the CEO of Just Capital; a non-profit organization that strives to create a more just market in America through the collection of data. Whittaker discussed the importance of corporate social responses in today’s climate by addressing the Environment and Social aspects of the crisis. COVID-19 has resulted in hazardous working conditions, so companies should be prioritizing the wellbeing of their employees. According to Whittaker, the proper treatmen...

CNBC recently noted that:  "Major funds invested in gun stocks include the Vanguard Total Stock Market ETF, iShares Russell 2000 ETF and Schwab U.S. Broad Market ETF."  They went on to state that: "Last week's mass killing of 17 people at a public high school in Parkland, Florida, has caused some major pension funds and institutions to investigate the extent of their investments in gun makers. Some of Wall Street's largest exchange-traded funds are currently invested in American Outdoor Brands — formerly Smith & Wesson — and Sturm, Ruger & Co., designers, makers and retailers of firearms for domestic buyers. Fierce scrutiny has pushed New Jersey state lawmakers to restrict the state's public pensions from investing in the stocks of gun manufacturers, while the world's largest asset manager, BlackRock, said it would 'engage' with (gun) companies on their response to the shooting."  We have come to expect large investment fund...