The ESG credentials of ESG companies
This is our weekly newsletter we deliver to educate our readers on ESG. We aim to curate content on responsible investment to educate and surface relevant news articles, academic papers, best practice reporting guides and latest industry developments. We have a strong ESG community and if you have feedback to share reply to this email to let us know what’s on your mind!
Nossa Data: One Platform, Everything you need to stay on top of ESG.
Issue #75: A weekly update on responsible investment.
Forwarded by a friend? Subscribe here.
\\ Weekly Insights \\
I have seen many great LinkedIn posts by a fellow ESG’er Matt Moscardi. This week I saw a very interesting one where he dug into the leadership teams of 10 of the ESG data framework companies. His point: If the average board is 82% white and 24% female for US public companies, currently within ESG companies themselves — the numbers are not much better:
The data:
ISS leadership team:
- 5 of 17 women
- 0 of 17 black
- 0 of 17 Asian
Sustainalytics/ Morningstar board + leadership:
- 6 of 19 women
- 0 of 19 black
- 2 of 19 Asian
MSCI board + leadership:
- 4 of 24 women
- 1 of 24 black
- 1 of 24 Asian
RepRisk board + leadership:
- 12 of 20 women
- 1 of 20 black
- 2 of 20 Asian
Arabesque board:
- 3 of 5 women
- 0 of 5 black
- 1 of 5 Asian
RobecoSAM
- 2 of 8 women
- 0 of 8 black
- 0 of 8 Asian
SASB leadership:
- 3 of 9 women
- 0 of 9 black
- 1 of 9 Asian
CDP leadership:
- 11 of 22 women
- 1 of 22 black
- 2 of 22 Asian
GRI board:
- 7 of 14 women
- 2 of 14 black
- 3 of 14 Asian
TCFD task force
- 13 of 27 women
- 0 of 27 black
- 5 of 27 Asian
On this point, when is the next opportunity to do better? Well I saw a very interesting figure referring to the current market growth of ESG job listings! I hope when we check back in after a busy 2021 ESG hiring spree the numbers are looking a bit better.
\\ Nossa News \\
We have a new brand and website!
Our color scheme and website have had a facelift and we would love for you to check it out. Check out our website and we would love to hear your thoughts on the new branding.
We featured some awesome women who work in CSR!
Our team had the pleasure to learn about San Francisco based networking group Women in CSR. The group’s mission: “To create a supportive space for professionals who identify as women in Corporate Social Responsibility (CSR) and Sustainability to exchange ideas, create community, and share passions.” The organization does this via monthly (currently virtual) happy hours, workshops, and ongoing resource sharing between women.
Read the feature.
See our feature by the City of London!
We loved being featured in a video with the City of London to share about our expansion plans and the advantages of being a UK based company. We shared:
“For us, it has been really beneficial being in London. Nearly everyone we speak to has a high ranking ESG person based out of London. It really helps speed up our relationship building because it is easy for us to meet the key people”
Thank you to the London-based ESG professionals who have been creating a wonderful ecosystem for us to be a part of. Watch our feature.
\\ Companies Making Statements \\
- Blackrock — Launches actively managed carbon transition ETF: Read about the ETF.
- Citi — Incorporates ESG scores into their security services data platform. Learn about Citi’s commitment.
\\ Top Stories \\
Why ESG performance is growing in importance for investors?
- The COVID-19 pandemic has reinforced the importance of ESG issues and accelerated the transition to a more inclusive capitalism.
- Investors increasingly believe companies that perform well on ESG are less risky, better positioned for the long term and better prepared for uncertainty.
- Companies that realign to the stakeholder capitalism agenda may have a competitive advantage over those that try to return to business as usual.
EY.
Understanding how ESG scores are measured
While environmental, social and governance scores are increasingly debated in the financial industry, pinpointing what they actually measure can be less clear. The layperson may legitimately expect that an ESG score provides an overview or rating on how ethical a company or its products are. This is not necessarily the case. Refinitiv ESG scores, for example reflect a relative performance based on fundamental ESG attributes which are publicly disclosed and auditable. It is in this context that we continue to call for ESG data to be treated as objective and fundamental data, not categorised as merely alternative data or dependent on subjective opinion. In shaping the debate, we need to examine the key definitions.
Refinitiv.
ESG is a moving target even for the best companies
In this episode, I talk with David Curran, the Chief Sustainability and ESG Officer at the law firm Paul, Weiss. In this role, Dave has dual responsibilities — to work with the firm’s lawyers to lead its Sustainability and ESG Advisory Practice Group, and also to develop and promote the firm’s internal ESG practices. Since ESG has become one of the hottest topics in corporate governance I think you will get a few good take-aways from our conversation on this increasingly important subject matter.
Listen to the podcast.
Borrowers tap hot ESG demand to sell green bonds at a premium
Governments and companies raising funds through green debt are benefiting from lower borrowing costs, a so-called “greenium”, in the latest sign of investors’ ravenous demand for sustainable assets. The premium in price these deals command highlights the swift growth in the market for debt that is labelled green because it funds spending that is meant to support climate or environmental goals. “Everything with a green label is basically being bought,” said Mitch Reznick, head of sustainable fixed income at Federated Hermes.”
Financial Times.
Global Water Crisis Creates a New ESG Market
About six weeks ago, millions of homeowners across Texas suddenly found their water to be possibly contaminated — or lost access to it entirely — when freezing temperatures and the state’s decrepit infrastructure led to widespread blackouts. The World Health Organization estimates that in less than four years, half of the world’s population will be living in water-stressed areas. While most environmental discussions focus on greenhouse-gas emissions, nine of the 10 greatest risks faced by humanity are linked to a lack of water/
Bloomberg.
An open letter to Bill Gates about his friend Warren Buffet
Dear Mr. Gates,
By way of introduction, I would like to thank you for everything you and your wife Melinda’s foundation is doing to combat climate change. I am writing to ask you for two small favors. The first favor is that I request you call your good friend Warren Buffett, and ask him to vote in favor of the Berkshire Hathaway shareholder proposal submitted by the California Public Employees Retirement System (CalPERS), Federated Hermes, and Caisse de dépôt et placement du Québec (CDPQ).
* Want to make your ESG processes digital?
** Schedule a call to speak with Nossa Data
*** Email Team@nossadata.com
\\ Weekly Report Feature \\
Building Dialogue Between Investors and Issuers on ESG
London Stock Exchange Group
The number and scale of investors emphasising ESG (Environmental, Social & Governance) factors in their decision making and engagement processes continues to gather pace. More asset managers are integrating ESG into their portfolio construction. Their growing conviction is that ESG and stronger returns are two sides of the same coin: one survey last year of 607 institutional investors found that 61% had increased their investment allocation to companies that excel when it comes to ESG factors.
The challenge for issuers is not only to focus and improve on their ESG performance but also how they communicate and engage with investors. Besieged by requests for more ESG information, issuers are responding with greater levels of transparency and data disclosure. But the challenges are several.
How are different industries improving their ESG scores?
Who are the top 8 performers on their ESG disclosure according to the LSEG?
- Coca-Cola European Partners plc
- Coca-Cola Hbc Ag
- Compagnie De Saint-Gobain
- Crest Nicholson Holdings plc
- Diageo plc
- London Stock Exchange Group plc
- Pearson plc
- Standard Life Aberdeen plc
\\ Leading Across ESG \\
What content do you want to see next week?
Nossa Data is the center of the ESG universe supporting innovative leaders around the world in staying informed.
Let us know what is most relevant for you to learn about by replying to this email. We will do our best to include it in a future issue.
Forwarded by a friend? Subscribe here: https://nossadata.com/subscribe
Thank you for reading! Tell us what you think!Hi, I want to say thank you for subscribing to Nossa Data’s weekly email on ESG. There is a growing expectation that the same way a company’s financial information should be accessible, so should a company’s ESG or non-financial information.
This is why we spend time every week to shine a light on ESG.
Our community is a wonderful group of leaders so I would love to know more about you and what encouraged you to subscribe.
Thank you for joining us on our ESG journey,
Julianne
—
Julianne Sloane
Co-founder of Nossa Data
Book an intro call in my calendar
\\ Follow us on Social \\
