Could ESG scores have predicted the Wirecard scandal? Moral Money analyzed Wirecard’s ESG scores and found that the company received an average score by several data providers that missed the red flag. Consequently, some ESG ETFs held Wirecard stock. An outlier is DWS’s ESG fund, which saw the red flag in April and sold its stake in Wirecard.
The ability of companies to react to external and internal pressures and the role of boards in relation to socioeconomic issues has been increasingly scrutinized. A recent survey of more than 300 directors conducted by the National Association of Corporate Directors (NACD) reveals which governance challenges are likely to dominate directors’ attention. According to the results (see graph on the right), the biggest governance challenges will be: 1) Shaping a realistic post-crisis strategy, 2) Ensuring the ongoing health and safety of employees and 3) Getting up to speed on all the emerging risk dimensions of the crisis. In addition, the survey identifies the highest impact trends going forward, including 1) The changing way in which work gets done, 2) Reduced Global Demand, and 3) Acceleration of digital transformation.
Forbes launched the Forbes Corporate Responders: a new ranking which assesses how well the 100 largest employers among U.S. public companies reacted to Covid-19 based on JUST Capital’s Covid-19 Corporate Response Tracker. The top 10 companies are: Verizon, Target, AT&T, Walmart, T-Mobile, Lowe’s Companies, Starbucks, Home Depot, JPMorgan Chase, and the Kroger Co.
BOSTON – High Meadows Institute is excited to announce the launch of the Business Leadership in Society Database, a comprehensive new resource for tracking and assessing industry associations and partnerships promoting responsible business leadership. Developed by High Meadow Institute, with support from KKS Advisors, the database profiles over 200 initiatives, operating both nationally and globally and will officially launch June 3. Self-regulatory initiatives that address major Environmental, Social and Governance (ESG) issues have become an increasingly important contributor in setting standards for corporate social responsibility in the 21st century. While the number of these initiatives is rapidly growing, there is…
Do companies that prioritize and invest in their workers perform better? And in what direction are sustainable fund flows going during the bear market? Below we feature our favorite charts answering these very questions.
As companies face unprecedented challenges, JUST Capital launched the COVID-19 Corporate Response Tracker
to explore the actions CEOs and corporate leaders of America’s 100 largest public employers are taking to
support and protect their workers, among others. According to the tracker, the most common actions taken by
companies during the pandemic include offering special accommodations to customers such as discounts (64%
of companies) and allowing remote or modified schedules (also 64%). Other key metrics and results include [as
of 20th April]:
While ESG integration has been widely explored from company, investor, and broader capital market perspectives, there has been less focus on the role of trade associations in ESG integration and their influence on regulation and policy development on ESG issues such as climate change. This research note, prepared by KKS Advisors, shines a light on the role that trade associations play in promoting and inhibiting the integration of ESG in business practices and reporting. It examines the ways that companies currently disclose their trade association memberships and identifies barriers to increased disclosure and transparency. Specifically it makes a case for…
The High Meadows Institute is pleased to welcome Jon Lukomnik as a senior fellow of the Institute. Jon has had a long and distinguished career in the investment management industry and is one of the pioneers of modern corporate governance. He has written and published over 200 academic and practitioner articles on how to strengthen the contribution and accountability of the financial systems and asset management industry. He is the past executive director of the Investor Responsibility Research Center (IRRC) Institute, whose research has been widely praised for objectively examining fundamental corporate governance and capital market issues. He is a…
What the Wells Fargo Crackdown Signals to Corporate America The Federal Reserve’s recently imposed penalties on Wells Fargo diverge from President Trump’s stated position on de-regulation. However, Peter Henning of the New York Times sees the “crackdown” as a one-off penalty and not a sign of broader industry regulation to come. Unilever Threatens to Reduce Ad Spending on Tech Platforms That Don’t Combat Divisive Content Unilever, long viewed as a leader in corporate social responsibility, recently announced that the company will no longer advertise on platforms that are not “committed to creating a positive impact in society.” The company…
BlackRock Message: Contribute to Society or Risk Losing Our Support Larry Fink, the CEO of BlackRock (the largest investor in the world), is sending a letter to the world’s largest public companies letting them know that in addition to turning a profit, they have to show that they are doing good in the world to receive BlackRock’s support–and a share of its $6 trillion AUM. In the letter, Fink shares HMI’s perspective that government is not doing enough to prepare for future and the onus now rests on the private sector to address societal challenges. Wall Street Fighters, Do-Gooders—And Sting—Converge…
