Here we are now in a new year, and new decade (the third decade of the 21st Century) and much of the buzz is all about (1) climate change and the dramatic impacts on business, finance, government and we humans around the globe; and (2) many more investors are moving their money to more sustainable investments.
Oh, of course, there are other important conversations going on, such as about corporate purpose, corporate stewardship, human rights, the circular economy, worker rights, supply chain responsibility, reducing GHG emission, conserving natural resources, moving to a greener and lower carbon economy, workplace diversity, what happens to workers when automation replaces them…and more. But much of this is really part of sustainable investing, no? And corporate purpose, we’d say, is at the center of much of this discussion!
The bold names of institutional investors/asset management are in the game and influencing peers in the capital markets – think about the influence of Goldman Sachs, BlackRock (world’s largest asset manager), State Street/SSgA, The Vanguard Group, and Citigroup on other institutions, to name a handful of major asset managers adopting sustainable investing strategies and approaches.
This week’s Top Story is about Goldman Sachs Group Inc’s pivot to “green is good”, moved by Reuters news service and authored by Chris Taylor. The GS website welcome is Our Commitment to Sustainable Finance. The company announced a US$750 billion, 10-year initiative focused on clean energy, affordable education and accessible healthcare, and reduction of or exclusion of financing for Arctic oil-gas drilling.
Head of GS Sustainable Finance Group John Goldstein explains the company’s approach to sustainable financing and investment in the Reuters story.
Our other Top Story is from Morningstar; this is an update on the investors’ flow into sustainable funds in 2019…what could be the leading edge of a huge wave coming as new records are set.
For 2019, net flows into open-end and ETF sustainable funds were $20.6 billion for the year just ended – that’s four times the 2018 volume (which was also a record year). There’s always information of value for you on the Morningstar website; registration is required for free access to content.
And the commentary on the January 2020 letter from BlackRock CEO Larry Fink to the CEOs of companies the firm invests in – we’ve included a few perspectives.
We’d say that 2020 is off to an exciting start for sustainability professionals, in the capital markets, and in the corporate sector!
This is just the introduction of G&A's Sustainability Highlights newsletter this week. Click here to view the full issue.
KEYWORDS: MEDIA & COMMUNICATIONS, business & trade, Corporate Social Responsibility, CSR, G&A Institute, GRI, Governance & Accountability Institute, G&A, SRI, SWF, socially responsible investing, Sovereign Wealth Funds, Sustainability, Corporate Citizenship, ESG