This Week in ESG and Impact Investing

On June 23rd, the NSU Broward Center for Innovation held a webinar titled “Blue Economy: Trends, Challenges, Opportunities, Strategies” to discuss the advancement of sustainability and innovation in developing the human economy around ocean resources.  Moderated by John Wensveen, the Executive Director of the NSU Broward Center for Innovation, the panel included Shelby Thomas, CEO of Ocean Rescue Alliance, Daniel Kleinman, CEO of Seaworthy Collective, Sean O’Hanlon, Principal at Tierra Verde, and Alec Bogdanoff, Principal at Brizaga.  The Blue Economy , according to the World Bank is defined as as “the sustainable use of ocean resources for economic growth, improved livelihoods and jobs, and ocean ecosystem health.” Through the webinar, the panelists discussed the current state of the Blue Economy, its various sectors and applications, and what to expect moving forward. The panelists could not overstate the economic magnanimity of this growing industry, citing an overall mark...

On June 17th, 2021, the Biden Administration announced the Child Tax Credit (part of the American Rescue Plan) in order to combat child poverty. To be eligible for this program, individuals must file taxes and have income no greater than $50,000. This program gives $3,000 to parents with children between the ages 6-17 and $3,600 to those who have children under the age of 6. The Biden Administration believes that it is a moral imperative to make sure this tax credit reaches parents struggling to take care of their children. In a critical modification not seen before, this programs gives parents who have not filed taxes the ability to receive tax credit through a simple non-tax-filer tool specifically for this child tax credit.  This program has several distinctive features:  First-time payments will be distributed in monthly $500 increments.  Furthermore, parents who have not filed taxes are encouraged to file immediately, since this tax credit program allows them to rece...

A recent webinar titled  ESG Integration Across Asset Classes displayed Bloomberg’s focus on recognizing the need for data centered, environmental, social and governance (ESG) metrics within every investor’s portfolio. Bloomberg is a privately held financial, software, data, and media company headquartered in Midtown Manhattan, New York City. As a part of Bloomberg’s Portfolio & Index Research Conference, the webinar provided technical details on the firm's efforts to measure ESG. ( Creative Investment Research has been measuring ESG impacts since 1989 .) A three-pronged approach—analyzing the carbon transition, power sector transition, and climate policies—underlies Bloomberg’s climate scores.  With a focus on climate impact and commodities, Bloomberg presented two approaches to measuring carbon emissions—the number one priority of the Paris Climate Agreement benchmarks.  First, Bloomberg experts used company level data and Bloomberg Industry Classification St...

  On June 15th, several American financial and political leaders convened in distinct discussions concerning the future of Minority Deposit Institutions (MDIs) and Community Development Financial Institutions (CDFIs). At a White House press conference, a Federal Deposit Insurance Corporation (FDIC) Board meeting and MDI policy statement release, in a House Financial Services Committee statement, and a Georgetown University forum with an all-star cast, minority lending was the conversation of the day. Utilizing the Mosaic Theory, Creative Investment Research contends that the convergence of these events may not be a coincidence, and may signal a significant policy change. We note that the MDI events of June 15th were preceded by a June 14th meeting of the California Public Employees’ Retirement System (CalPERS) Investment Committee. Of particular relevance was a progress report on the Fund’s Sustainable Investment 5 Year Strategy Plan. Fund management discussed diversity and inclusi...

There are a number of minority bank events occurring this Tuesday: FDIC Board Meeting:10:00 a.m. on Tuesday, June 15, 2021. Federal Deposit Insurance Corporation’s Board of Directors will meet in open session to consider a memorandum and resolution re: Final Policy Statement Regarding Minority Depository Institutions. Visit http://fdic.windrosemedia.com to view the live event. Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, will join Vice President Kamala Harris, Treasury Secretary Janet Yellen, Senator Mark Warner (D-VA), and Opportunity Finance Network President and CEO Lisa Mensah at the White House to discuss the importance of minority banks, community-based lenders, and the need to support small and minority-owned businesses. WHAT: White House Community Development Financial Institutions Funding Announcement Event. WHO: Vice President Kamala Harris. Treasury Secretary Janet Yellen. Chairwoman Maxine Waters (D-CA). Senator Mark Warner (...

The end of May, 2021 marks the 100th anniversary of the 1921 Tulsa Race Massacre. On May 31st and June 1st, 1921, the Greenwood district of Tulsa experienced what remains known as the worst incident of racial violence in U.S history.  A predominantly black neighborhood, the Greenwood District, also known as Black Wall Street, was the center for many thriving black business owners and prosperity of black wealth. The massacre took place after tensions in the city rose following an incident in an elevator  involving a young black man, Dick Rowland, and a young white woman, Sarah Page. The following day Rowland was arrested, and a white mob converged on the Greenwood District.  This historic event is personal to me as I am a white student who grew up in the public-school systems of Tulsa. I was never taught the history of my city. It was introduced to me after I moved away from Tulsa. It was a new history teacher who finally taught my class the Tulsa Race Riots while I was ...

"Last year, after the murder of George Floyd, 251 American companies vowed to combat systemic racism within their own organizations. In aggregate, these companies pledged $65 billion to bolster their diversity and equity initiatives. One year later, economist William Michael Cunningham says only $500 million has been allocated toward these efforts. 'We know American corporations can move if they want to … there’s a lot of expertise in communities of color that could help these companies make these changes … the impetus for making these kinds of rapid changes has definitely declined.' —William Michael Cunningham, Creative Investment Research Cunningham explains that American companies have the resources to honor these pledges, but he says structural and cultural problems, as well as a lack of accountability, are hindering their ability to follow through on their promises." Economist William Michael Cunningham on the impact of racial justice pledges. Listen:  Checking I...