Posts by Broc Romanek
Investor risk analysis must include the risk of a failing planet or broken society
This note from Nawar Alsaadi rings true to me based on the conversations I’ve had with many about climate. People can’t wrap their head around what the science says is true – or they haven’t been informed about how dire the circumstances are. Here is Nawar’s note: When I chat with conventional portfolio managers about…
Read MoreA binding set of ethical rules to help fix the climate?
As noted in this NY Times article, former Simpson Thacher lawyer turned climate activist Jaime Gamble blames the law for a lot of what has gone wrong in trying to combat climate change. That the law has handcuffed companies from considering anything beyond shareholder primacy. That kind of talk certainly isn’t new. Jaime’s proposal is…
Read MoreRenewable energy is becoming much cheaper
Here’s a note from Mark Campanale, Founder and CEO of the Carbon Tracker Initiative: Delighted to see Bill McKibben writing about Carbon Tracker in his latest column in the New Yorker. “…if you want real hope, the best place to look may be a little noted report from the London-based think tank Carbon Tracker Initiative. Titled “The…
Read MoreHow COVID disclosures provide a climate risk disclosure roadmap
– How companies approach COVID risks is similar to how they can approach climate risks – Here’s a simple disclosure roadmap that you already have at hand to evaluate climate change risk for SEC disclosures Here’s a write-up from our advisory board member, Ginny Fogg: There is lots of debate on the “when,” “where” and…
Read MoreHow psychology might explain what’s holding a board back
– Boards should learn about authority bias, groupthink, status quo bias and confirmation bias so they don’t fall into those traps. – 43% of directors on boards with an executive chair said it was difficult to voice a dissenting view—compared to just 35% on boards with an independent chair. This PwC memo is an interesting…
Read MoreVoluntary, market-led sustainability isn’t enough (we need government)
Here’s a note by Duncan Austin: Excellent new article by Ken Pucker in Institutional Investor that concisely reprises the history of CSR, SRI and ESG and shows how it has become a ‘long-developing feint’ now ‘distracting us from the work needed to reset our economic system’. Very nicely done, with lots of telling details. I…
Read MoreWhat will be the impact of the “Sustainability Standards Board”?
– The SSB will create a global standard, which is ideal to tackle a global problem. – To be effective, the SSB’s standards must be mandatory globally. Here’s a note from Sarah-Jayne Dominic of the Financial Reporting Council about the SSB: A good article summarizing the development of a Sustainability Standards Board (SSB) by the…
Read MoreVermont files a bevy of fossil fuel lawsuits
Today, Wachtell Lipton sent around this memo about a new development regarding climate lawsuits: Companies in the United States and elsewhere continue to face extreme pressure to respond to climate change, with respect to both business operations and disclosures. In the most recent U.S. development on this front, the State of Vermont yesterday brought civil…
Read More2/3 say the environment matters (is that enough?)
– 2 in 3 global respondents say environmental issues are significantly important to them personally. – 84% of global consumers consider sustainability important when choosing a brand. Boards need to know how their employees, customers and suppliers think about ESG when they strategize. Here’s a note from Andreas Posavac, the Executive Director for IHS Markit’s…
Read MoreEngine No. 1’s “Total Value Framework” now available
As Ross Kerber reports in this Reuters article, Engine No. 1 – which has about $430 million in assets under management – has released a “Total Value Framework” for investing that pushes for a value to be assigned to how corporate activities affect climate and society. Here’s an excerpt from that article: In the white…
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