Archiv der Kategorie: Governance

ESG Beliefs: Piture by Yolanda Diaz Tarrago from Pixabay shows green world with fruits

ESG beliefs: Researchpost #124

ESG beliefs: 10x new research on biodiversity, subsidies, governance, greenium, ESG beliefs, divestments, taxonomy reporting, fund commissions, SVB, private asset platforms etc. by Theresa Kuchler, Johannes Stroebel, Christian Klein and many more (# indicates the number of SSRN downloads on April 19th, 2023)

Ecologial and social research

Quantified biodiversity risks: Biodiversity Risk by Stefano Giglio, Theresa Kuchler, Johannes Stroebel, and Xuran Zeng as of April 4th, 2023 (#8): “The goal of this paper is to introduce measures of aggregate biodiversity risk as well as measures of firms’ and industries’ exposures to these risks; to connect and validate the two; to study the pricing of this risk in financial markets; and to publicly release our biodiversity exposure measures at www.biodiversityrisk.org to facilitate more research on this important topic“ (p. 28).

Dubious subsidies: Green Technology Adoption, Complexity, and the Role of Public Policy: A Simple Theoretical Model by Sanjit Dhami as of April 13th (#9): “We present a simple model of technology choice by heterogeneous firms … We illustrate the extreme unpredictability of the final outcome, and consider the role of public policy in the form of taxes and subsidies in influencing the long-run expected outcome. Our model … highlights the challenges and limitations of public policy in such scenarios“ (p. 24).

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Critical ESG illustration with stethoscope on money picture by Gerd Altmann from Pixabay

Critical ESG and more: Researchposting 118

Critical ESG: 11x new research on tax avoidance, ESG deficits, corporate governance, green monetary policy, climate transition investing, shareholder engagement, inequality, factor investments, listed real estate, and ChatGPT by Alex Edmans, David Larcker, Martin Hoesli et al.

Unsocial multinationals: Global profit shifting, 1975–2019 by Ludvig Wier and Gabriel Zucman as of Nov. 29th, 2022 (#11): “This paper constructs time series of global profit shifting covering the 2015–19 period, during which major international efforts were implemented to curb profit shifting. We find that (i) multinational profits grew faster than global profits, (ii) the share of multinational profits booked in tax havens remained constant at around 37 per cent, and (iii) the fraction of global corporate tax revenue lost due to profit shifting rose from 9 to 10 per cent. We extend our time series back to 1975 and document a remarkable increase of multinational profits and global profit shifting from 1975 to 2019”. My comment: To strenghten communities (stakeholders), the reduction of profit shifting should be an attractive topic for shareholder ESG engagement

ESG investment research: Critical ESG

10 critical ESG theses: Applying Economics – Not Gut Feel – To ESG by Alex Edmans as of Feb. 21st, 2023 (#2754): “I identify how conventional thinking on ten key ESG issues is overturned when applying the insights of mainstream economics” (abstract): “1. Shareholder Value is Short-Termist (No, shareholder value is a long-term concept). 2. Shareholder Primacy Leads to an Exclusive Focus on Shareholder Value (No, shareholders have objectives other than shareholder value). 3. Sustainability Risks Increase the Cost of Capital (No, sustainability risks lower expected cash flows). 4. Sustainable Stocks Earn Higher Returns (No, sustainability may be priced in; tastes for sustainable stocks lead to lower returns). 5. Climate Risk is Investment Risk (No, climate risk is an unpriced externality). 6. A Company’s ESG Metrics Capture Its Impact on Society (No, partial equilibrium differs from general equilibrium). 7. More ESG Is Always Better (No, ESG exhibits diminishing returns and trade-offs exist). 8. More Investor Engagement Is Always Better (No, investors may be uninformed or undermine managerial initiative). 9. You Improve ESG Performance By Paying For ESG Performance (No, paying for some ESG dimensions will cause firms to underweight others). 10. Market Failures Justify Regulatory Intervention (No, regulatory intervention is only justified when market failure exceeds regulatory failure)“ (p. 4). My comment: I don’t detect any contradictions regarding my approach to invest as sustainable as possible considering exclusions, ESG and SDG factors and engagement, see e.g. Artikel 9 Fonds: Sind 50% Turnover ok? – Responsible Investment Research Blog (prof-soehnholz.com)

Advert for German investors: “Sponsor” my research by investing in and/or recommending my article 9 mutual fund. The fund focuses on social SDGs and midcaps, uses separate E, S and G best-in-universe minimum ratings and broad shareholder engagement. The fund typically scores very well in sustainability rankings, e.g. see this free new tool, and the performance is relatively good: FutureVest Equity Sustainable Development Goals R – DE000A2P37T6 – A2P37T

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Faultier auf dem Sofa um eine regelbasierte nachhaltige Geldanlage zu illustrieren

Artikel 9 Fonds: Sind 50% Turnover ok?

Artikel 9 Fonds mit klaren Nachhaltigkeitsregeln

Für meinen Artikel 9 Fonds FutureVest Equity Sustainable Development Goals R versuche ich, nur die verantwortungsvollsten 30 Aktien zu nutzen (vgl. 30 stocks, if responsible, are all I need – Responsible Investment Research Blog (prof-soehnholz.com).

„Verantwortungsvoll“ definiere ich dabei auf Basis eines transparenten Konzepts (vgl. 220901_Nachhaltigkeitsinvestmentpolitik_der_Soehnholz_Asset_Management_GmbH-9d76c965ab447b9ff4e1f04e62dffaa12e12f064.pdf (futurevest.fund).

Die Regeln für meine Portfolios können einmal pro Jahr geändert werden. Dabei versuche ich, die Nachhaltigkeitskriterien immer strenger zu fassen. Das hat Anfang 2022 zu einem Austausch von 15 der 30 Aktien meines Fonds geführt (für 2022 vgl. Mein Artikel 9 Fonds: Noch nachhaltigere Regeln – Responsible Investment Research Blog (prof-soehnholz.com).

Für den Fonds ist das die diesjährige Selektionsstatistik: Von über dreissigtausend Aktien liegen für etwas mehr als die Hälfte aussagekräftige E, S und G Ratings vor. Etwa 2.300 erfüllen meine E, S und G Mindestanforderungen. Davon fallen weitere knapp 400 durch meine Rule-of-Law Länderausschlüsse heraus, ungefähr 1.100 entfallen durch Aktivitätsausschlüsse und 100 weitere durch angekündigte Übernahmen, andere Delisting-Gründe oder ineffiziente Zugangsmöglichkeiten. Damit bleiben nach Ausschluss der 25% Aktien mit den höchsten Kursverlusten ungefähr 500 für meine Portfolios zulässige Aktien übrig. Ungefähr 10% davon erfüllen zudem meine Anforderungen an Vereinbarkeit mit den Nachhaltigen Entwicklungszielen der Vereinten Nationen (UN SDG).

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Worsening ESG investors (Researchblog #92)

Worsening ESG: >10x new research studies on bank climate risks, ESG model problems, governance, ecology, thematic ESG investments, shareholder engagement, exclusions, fund drawdowns and venture capital

Advert: Check my article 9 SFDR fund FutureVest Equity Sustainable Development Goals (-0,5% YTD). With my most responsible stock selection approach I focus on social SDGs and midcaps and use best-in-universe as well as separate E, S and G minimum ratings.

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ESG regulation: Das Bild von Thomas Hartmann zeigt Blumen in Celle

ESG overall (Researchblog #91)

ESG overall: >15x new research on fixed income ESG, greenium, insurer ESG investing, sin stocks, ESG ratings, impact investments, real estate ESG, equity lending, ESG derivatives, virtual fashion, bio revolution, behavioral ESG investing

Advert: Check my article 9 SFDR fund FutureVest Equity Sustainable Development Goals (-2,9% YTD). With my most responsible stock selection approach I focus on social SDGs and midcaps and use best-in-universe as well as separate E, S and G minimum ratings.

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Bild zum Beitrag ESG skeptical zeigt eine Ansicht einer Allee aus dem Celler Französischen Garten

ESG skeptical research (Researchblog #90)

ESG skeptical: >15x new and skeptical research on ESG and SDG investments, performance, cost of capital, reporting, ratings, impact, bonifications and artificial intelligence

Advert: Check my article 9 SFDR fund FutureVest Equity Sustainable Development Goals. With my most responsible selection approach I focus on social SDGs and midcaps and use best-in-universe as well as separate E, S and G minimum ratings.

Continue on page 2 (# indicates the number of SSRN downloads on July 5th):

Heidebild als Illustration für Proven Impact Investing

ESG ok, SDG gut: Performance 1. HJ 2022

ESG ok, SDG gut: Im ersten Halbjahr 2022 haben meine Trendfolgeportfolios sowie die Portfolios, die sich an den nachhaltigen Entwicklungszielen der Vereinten Nationen ausrichten (SDG), zwar auch an Wert verloren, aber dafür relativ gut gegenüber Vergleichsgruppen performt. Das gilt besonders auch für den FutureVest Equities SDG Fonds. Anders als die meist OK gelaufenen globalen haben spezialisierte ESG Portfolios der Soehnholz ESG GmbH im ersten Halbjahr schlechter als traditionelle Vergleichsportfolios abgeschnitten. Dafür war deren Performance in der Vergangenheit oft überdurchschnittlich.

Werbemitteilung: Kennen Sie meinen Artikel 9 Fonds FutureVest Equity Sustainable Development Goals: Fokus auf soziale SDGs und Midcaps, Best-in-Universe Ansatz, getrennte E, S und G Mindestratings.

Auf Seite 2 folgt die Übersicht der Halbjahresrenditen für die 15 nachhaltigen und zwei traditionellen Portfolios von Soehnholz ESG sowie für meinen Fonds.

Pictures shows Fire Icon by Elionas

ESG and impact investments under fire (Researchpost #89)

Under fire includes >10x new research on ESG and factors, performance, commitment, regulation, scope 3 GHG, market potential, indices, reporting, engagement, and impact washing

Advert: Check my article 9 SFDR fund FutureVest Equity Sustainable Development Goals. With my most responsible selection approach I focus on social SDGs and midcaps and use best-in-universe as well as separate E, S and G minimum ratings.

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Nachhaltigkeitsfragen als Screenshot einer Präsentationsfolie

Deadline August: Müssen dann andere Fonds angeboten werden?

Deadline August: Ab August müssen AnlegerInnen aufgrund regulatorischer Vorgaben (MiFID II, IDD) nach ihren Nachhaltigkeitspräferenzen befragt werden. Auch künftig ist zunächst weiterhin die sogenannte Geeignetheit zu prüfen, speziell Renditeerwartungen, Risikokriterien, Zeithorizont und individuelle Umstände von InteressentInnen. Vereinfacht zusammengefasst muss künftig im Anschluss daran gefragt werden, inwieweit eines oder mehrere dreier Nachhaltigkeitsprodukttypen in Anlagen einbezogen werden sollen: Erstens ein Produkt mit einem ein Mindestanteil an ökologisch nachhaltigen Investitionen oder, zweitens, einem Mindestanteil an sozial nachhaltigen Investitionen oder drittens mit einer Mindest-ESG-Gesamtbeurteilung.

Werbemitteilung: Kennen Sie meinen Artikel 9 Fonds FutureVest Equity Sustainable Development Goals R – DE000A2P37T6 – A2P37T mit Fokus auf soziale SDGs und Midcaps, Best-in-Universe Ansatz, getrennte E, S und G Mindestratings?

Auf Seite 2 geht es weiter:

Picture by SugarHima shows wooden fake wind generator to illustrate benchmarking problems

Benchmarking problems (Researchpost #88)

Benchmarking problems: Almost 20x new research on tax avoidance, net-zero illusions, brown and unsocial banks and mutual funds, negative ESG bonus, plastics, real estate, panic, monetary policy, missing data, wrong benchmarks, institutional herding, and fintechs

Advert: Check my article 9 SFDR fund FutureVest Equity Sustainable Development Goals. With my most responsible selection approach I focus on social SDGs and midcaps and use best-in-universe as well as separate E, S and G minimum ratings.

Continue on page 2 (# indicates the number of SSRN downloads on June 14th):