{"id":1132,"date":"2018-09-10T21:09:00","date_gmt":"2018-09-11T01:09:00","guid":{"rendered":"https:\/\/ga-institute.com\/to-the-point\/?p=1132"},"modified":"2018-09-18T13:40:12","modified_gmt":"2018-09-18T17:40:12","slug":"the-needle-continues-to-move-forward-developments-in-corporate-sustainability-responsibility-and-sustainable-investing-continue-to-shape-an-important-year","status":"publish","type":"post","link":"https:\/\/ga-institute.com\/to-the-point\/the-needle-continues-to-move-forward-developments-in-corporate-sustainability-responsibility-and-sustainable-investing-continue-to-shape-an-important-year\/","title":{"rendered":"The Needle Continues to Move Forward \u2013 Developments in Corporate Sustainability \/ Responsibility and Sustainable Investing Continue to Shape an Important Year"},"content":{"rendered":"<h3><span style=\"color: #000000;\"><strong>Third in the 2018 Series<\/strong><\/span><\/h3>\n<h3><span style=\"color: #3366ff;\"><em>Continuing our commentary on the theme advanced by MSCI\u2019s Linda Eiling Lee \u2013 that 2018 would be a year of Volume and Velocity with rapid, dramatic changes in sustainable investing and corporate sustainability, we bring you this update as the \u201cnew business year\u201d begins after the passing of Labor Day in the U.S.A.<\/em><\/span><\/h3>\n<h2><strong>Oxfam Looks at Ag &amp; Food Industry Risk and <em>Materiality<\/em><\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-thumbnail wp-image-1134\" src=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/oxfam-logo-150x150.png\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/oxfam-logo-150x150.png 150w, https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/oxfam-logo-300x300.png 300w, https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/oxfam-logo.png 425w\" sizes=\"auto, (max-width: 150px) 85vw, 150px\" \/>The NGO Oxfam is organizing an effort to improve transparency and accountability within the food and agriculture segments of the economy:<\/p>\n<p>\u201cPoor management\u201d of the ag\/food supply chain leads to operational disruptions, regulatory breaches, headline risk for companies and inequalities that that threaten global growth and stability, says Oxfam.<\/p>\n<p>The campaign is dubbed <strong>\u201cThe Behind the Barcodes Investment Statement.\u201d<\/strong><\/p>\n<p>The effort is intended to improve corporate accountability and transparency among supermarkets and other retailers and within the global food supply chain.\u00a0 The campaign examined the sourcing policies and practices of <strong>16<\/strong> of the largest and fastest-growing supermarkets in the United States of America, United Kingdom, Germany and the Netherlands in comparison to their peers &#8212; and is asking the companies to:<\/p>\n<ul>\n<li>\u00a0Improve the transparency of sourcing of food that they market.<\/li>\n<li>\u201cKnow and Show\u201d and <em>act<\/em> on the risk of human rights violations faced by women and men in their supply chains.<\/li>\n<li>Guarantee safe working conditions and equal opportunities for women.<\/li>\n<li>\u201cFairly share\u201d the revenues in the food industry with the men and women who produce the food that the retailers are marketing.<\/li>\n<\/ul>\n<p>The companies will receive a scorecard to analyze their policies in the four areas.\u00a0 These can be summed up as <em>attitudes, policies and practices<\/em> (outcomes) regarding (1) transparency, (2) workers, (3) small-scale producers and (4) women.<\/p>\n<p>Part of the motivation of the campaign is to address these issues as small operators are gobbled up in industry consolidation by the larger (and getting still larger) industry players.<\/p>\n<p>A few players are the influences (both positive and negative) in the industry as consolidation continues. (Think about the growing influence of Wal-Mart Stores and Amazon in the U.S.A. in grocery retailing.)<\/p>\n<p>Oxfam, monitoring worldwide, sees the results as including more human rights abuses, poor working conditions as a norm, discrimination against women on the rise and a declining share of value produced allocated to the supply chain workforce.<\/p>\n<p>This trend in the retailing business model, says Oxfam, is <em>unsustainable.<\/em><\/p>\n<p>But with lack of transparency into the food retailing business, it is hard to fully evaluate the material risks and opportunities &#8212; and so the campaign.<\/p>\n<p>Among the sustainable &amp; responsible investing signing on to the campaign:\u00a0 <strong>Boston Common Asset Management<\/strong>; <strong>Domini Impact Investments<\/strong>; <strong>Interfaith Center on Corporate Responsibility<\/strong> (ICCR, with its 300 member institutions and $2 trillion in collective AUM); <strong>Mercy Investments<\/strong>; <strong>Trinity Health<\/strong>; <strong>Tri-State Coalition for Responsible Investment<\/strong>; <strong>Walden Asset Management<\/strong>; <strong>Zevin Asset Management<\/strong>.<\/p>\n<p>Keep in mind for protecting corporate reputation if you are an ag &amp; food company with distributed supply chain:\u00a0 the campaign slogans include <em>\u201cHuman Suffering \u00a0Should Never Be An Ingredient in the Food We Buy From Supermarkets.\u201d\u00a0 <\/em><\/p>\n<p>Among the companies named: <strong>Whole Foods<\/strong> (now part of <strong>Amazon<\/strong>); <strong>Stop &amp; Shop<\/strong>; <strong>Giant<\/strong>; <strong>Wal-Mart<\/strong>; <strong>Albertsons<\/strong>; <strong>Costco<\/strong>; <strong>Kroger<\/strong>.<\/p>\n<p>Oxfam publishes the \u201cBehind the Barcodes\u201d scores for these supermarkets, made available on the organization&#8217;s web site. There is a companion list of the human rights allegations in the supply chains of the stores at: <a href=\"http:\/\/www.business-humanrights.org\/barcodes\">www.business-humanrights.org\/barcodes<\/a><\/p>\n<p>Supermarket industry leaders ranked by Oxfam will not likely to be pleased with the initial results.\u00a0 But these rankings will serve as an excellent foundation of understanding for the retailers&#8217; boards and senior managements to understand the concerns of stakeholders (including NGOs and investors, and likely some portion of the wholesale and retail customer base) and empower them to address the issues and develop solutions.<\/p>\n<p>Supporters of the campaign are invited to sign on to a pledge.\u00a0\u00a0<a href=\"https:\/\/www.oxfamamerica.org\/take-action\/campaign\/food-farming-and-hunger\/behind-the-barcodes\/?gclid=EAIaIQobChMIvYfLwvih3QIVlo-zCh0CnwhCEAAYASAAEgKAXPD_BwE\">Click here for more information.\u00a0<\/a><\/p>\n<h2><strong>Guns &amp; Investors \u2013 The Shareowners Speak Out to Gunmakers &amp; Marketers<\/strong><\/h2>\n<p>The Second Amendment to the <strong>Constitution of the United States of America<\/strong> says this: \u201cA well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.\u201d\u00a0 (The first ten amendments, adopted at the time of the ratification of the Constitution in 1789, after the original states individually ratified the agreement, are known as <strong>The Bill of Rights<\/strong> for American citizens.)<\/p>\n<p>Consider:\u00a0 The number of pistols and rifles (\u201cguns\u201d) in the U.S.A. total an estimated <em>half of all<\/em> personal guns in the roster of countries with the most guns, while making up only 5% of the world population.<\/p>\n<p>There were between 90 and 100 guns for every American a few years ago \u2013 one per person if distributed.\u00a0 (330 million population, 300-plus million guns).\u00a0 But \u2013 surveys show the average American has three guns while 3% of the population own half of the civilian guns in the United States.<\/p>\n<p>When things go wrong \u2013 as in the tragic Las Vegas shooting \u2013 we see headlines that <strong>Stephen Paddock<\/strong>, who fired on a concert from a hotel room, had almost 50 guns in various locations.<\/p>\n<p>And those types of headlines generate considerable heat for gun manufacturing companies and the retailers who market guns at the consumer level.<\/p>\n<p>And so the U.S. and other nations&#8217; asset owners and their managers with concern about all of this and more related to \u201cgun issues\u201d in 2018 had the manufacturers in focus.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-981 size-full\" src=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/02\/ICCR.png\" alt=\"\" width=\"274\" height=\"129\" \/>The 300 member institutions of the <strong>Interfaith Center on Corporate Responsibility<\/strong> own\/manage about $2 trillion in assets &#8212; and they regularly engage with public companies on societal issues, including \u201cguns\u201d.<\/p>\n<p>In 2018 moving toward the fall months the ICCR members waged a proxy resolution campaign targeting weapons manufacturers.<\/p>\n<p>Majority shareholder votes on ICCR campaign resolutions had these results:<\/p>\n<h3 style=\"padding-left: 30px;\"><em><strong><span style=\"color: #3366ff;\">Sturm Ruger \u2013 69% in favor<\/span><\/strong><\/em><\/h3>\n<p><em><strong>The ICCR statement on Gun Violence<\/strong><\/em> notes: \u201c&#8230;in light of continuing gun violence and mass shootings in the U.S. involving semi-automatic assault weapons, we call on gun manufacturers, retailers and distributors, as well as companies with financial ties to these industries, to review their operations, supply chains and policies to take meaningful action on this public safety concern.\u201d\u00a0 Investors representing $600 billion in AUM signed on to the statement.<\/p>\n<p>While the weapons manufacturers \u2013 some based in Europe and shipping guns to the U.S. \u2013 might ignore the ICCR pleas, this should have them take notice:<\/p>\n<h3 style=\"padding-left: 30px;\"><em><span style=\"color: #3366ff;\">\u201cAs providers of credit, payment platforms and insurance products, financial institutions can adopt safety measures to ensure they are not facilitating illegal or unauthorized guns sales\u2026or otherwise contributing to gun violence.\u201d\u00a0<\/span><\/em><\/h3>\n<p>ICCR suggests, for example, that insurance companies cease issuing insurance liability coverage for owners of assault weapons, and prohibit use of credit cards or platforms (<strong>PayPal, Square<\/strong>) for the sale of firearms.<\/p>\n<p>ICCR called on <em>all<\/em> companies to review their direct operations, trade relationships, and evaluate risks to protect employees, consumers and communities to address gun safety.<\/p>\n<p>This includes ending relationships with the <strong>National Rifle Association<\/strong> (<strong>NRA<\/strong>), which advocates for the leading gun manufacturers and lobbies against any political reforms proposed that &#8220;threaten&#8221; the viability of the Second Amendment (in their view).<\/p>\n<p>ICCR commended certain companies that \u201cdemonstrated good corporate citizenship\u201d for making commitments to gun safety \u2013 <strong>MetLife, Delta Airlines, Dick\u2019s Sporting Goods, Kroger,<\/strong> and <strong>Wal-Mart Stores<\/strong>.<\/p>\n<p>The influential <strong><em>Institutional Investor<\/em> <\/strong>magazine published a feature on the ICCR campaigns in August 2018 \u2013 \u201cThese Churches Buy Shares in Gun Companies. Their Goal: Confront Them.\u201d<\/p>\n<p>The companies named were <strong>Sturm, Ruger &amp; Co<\/strong> and <strong>American Outdoor Brands<\/strong>.\u00a0 The Sturm, Ruger shareholder proxy proposal would require Ruger to share plans for monitoring gun violence and developing safer firearms.<\/p>\n<p>The largest investor in the company \u2013 <strong>BlackRock<\/strong> \u2013 and the influential governance rating firm, <strong>ISS<\/strong>, both backed the proposal which then received majority vote.\u00a0 The campaign targeted <strong>American Outdoor Brands<\/strong> which was once known (for many years) as <strong>Smith &amp; Wesson Holding Corp<\/strong>.<\/p>\n<p>More information is available at: <a href=\"https:\/\/www.iccr.org\/investor-statement-gun-violence\">https:\/\/www.iccr.org\/investor-statement-gun-violence<\/a><\/p>\n<p>There\u2019s a comprehensive article at <a href=\"http:\/\/www.institutionalinvestor.com\">www.institutionalinvestor.com<\/a> that contains significant information about the history of the ICCR campaigns over a 40 year period.<\/p>\n<p>ICCR member institutions focus on a number of ESG issues.\u00a0 Note that in 2018 proxy voting, ICCR initiatives won <em>majority shareholder votes<\/em> at these companies:<\/p>\n<ul>\n<li><strong>Amerisourcebergen<\/strong> (ICCR&#8217;s issues: opiod risks and comp clawbacks)<\/li>\n<li><strong>Tyson Foods<\/strong> (water)<\/li>\n<li><strong>Kinder Morgan<\/strong> (climate change)<\/li>\n<li><strong>Amerisourcebergen<\/strong> (climate change)<\/li>\n<li><strong>Middleby<\/strong> (sustainability, climate change)<\/li>\n<li><strong>Anadarko Petroleum<\/strong> (climate change)<\/li>\n<li><strong>Ameren<\/strong> (water risk and coal ash)<\/li>\n<li><strong>Range Resources<\/strong> (methane)<\/li>\n<\/ul>\n<p>Companies where ICCR withdrew resolutions (108 in all) after satisfactory engagement with managements included: <strong>Bed, Bath &amp; Beyond<\/strong>; <strong>Hershey\u2019s<\/strong>; <strong>McDonald\u2019s<\/strong>; <strong>American Express<\/strong>; <strong>Costco Wholesale<\/strong>; <strong>Discover Financial<\/strong>; <strong>Hewlett-Packard<\/strong>; <strong>KeyCorp<\/strong>; <strong>Marriott<\/strong>; <strong>CVS Health<\/strong>; <strong>Starbucks<\/strong>; <strong>Yum! Brands<\/strong>; <strong>US Steel<\/strong>; <strong>Minerals Technologies<\/strong>; <strong>Kinder Morgan<\/strong>; <strong>CMS Energy<\/strong>; W<strong>EC Energy<\/strong>; and, <strong>Dominion Resources<\/strong>.<\/p>\n<p>All of these companies made progress or agreed to implement new policies as the companies engaged with ICCR and its member institutions on various issues of concern to the institutions.<\/p>\n<h2><strong>Moody\u2019s Corporation &#8211; &#8220;Progress&#8221; Reported<\/strong><\/h2>\n<p>Among the accused \u201cvillains\u201d of the <strong>2008 financial crisis<\/strong> were the leading credit risk rating agencies that issued opinions on collateralized debt issues that contained highly risky subprime or substandard loans. The leaders of the big agencies were hauled before the <strong>U.S. Congress<\/strong> and grilled on their practices.\u00a0 All promised changes would be made.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-694\" src=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2017\/12\/Moodys.jpg\" alt=\"\" width=\"255\" height=\"180\" \/>Here we are a decade later (the market began the terrifying downward slide in earnest in October 2008) and Moody\u2019s is \u201cdetailing its progress in opening doors to a better future\u201d in its latest CSR report (issued this summer).<\/p>\n<p>The report, says Moody\u2019s, details the company\u2019s progress in delivering on its goal of empowering people around the world to create a better future for themselves, their communities and the environment.<\/p>\n<p><strong>Moody\u2019s Corporation<\/strong> owns <strong>Moody\u2019s Investor Service<\/strong> and <strong>Moody\u2019s Analytics<\/strong> \u2013 the company is traded on the NYSE (MCO&#8221;).\u00a0 The company has 12,000 employees operating in 42 countries with revenues of US$4.2 billion in 2017.<\/p>\n<p>OK, it&#8217;s 2018 \u2013 <em>like Dorothy and Toto looking around and seeing they were not in Kansas anymore<\/em>, we are the operating arena of the present where companies go all out to demonstrate their corporate responsibility, sustainability and good citizenship.\u00a0 (And we are a pretty far distance in that regard from the bad old days of 2008.)<\/p>\n<p>Include now Moody\u2019s as a leader in the effort to strive for more responsible behaviors (as we will see in its strategies, actions, outcomes).<\/p>\n<p>The company has adopted a host of policies on critical subjects related to good governance, corporate responsibility and so on:<\/p>\n<ul>\n<li>Policy on Anti-competitive Rating Practices<\/li>\n<li>Receipt, Review and Retention of External Complaints<\/li>\n<li>Anti-bribery and Anti-Corruption Policy<\/li>\n<li>Code of Professional Conduct<\/li>\n<li>Conflict of Interest Certification<\/li>\n<li>And many more!<\/li>\n<\/ul>\n<p>In its current CSR Report, the company talks about \u201cActivating an Environmentally Sustainable Future\u201d that incorporates ESG considerations with its traditional credit analysis.\u00a0 A dedicated team helps global investors, governments and issuers (the company\u2019s customer base)\u00a0 understand the links between sustainability and credit risk.<\/p>\n<p><strong>Moody\u2019s Green Bond Assessments<\/strong> (\u201cGBAs\u201d) provide information to investors on new green bond issuances (information disclosed and how the bonds will be used).\u00a0 At mid-year, Moody\u2019s teams assessed <strong>40<\/strong> green bonds worth almost $19.5 billion.<\/p>\n<p>There\u2019s more for you in the company\u2019s CSR report at: <a href=\"http:\/\/www.moodys.com\">www.moodys.com<\/a><\/p>\n<h2><strong>New Forced Labor Screening Platform From Verite<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-1135 size-medium\" src=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/CUMULUS-Forced-Labor-Screen-FINAL-Logo_Large3-e1536609438670-300x77.png\" alt=\"\" width=\"300\" height=\"77\" srcset=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/CUMULUS-Forced-Labor-Screen-FINAL-Logo_Large3-e1536609438670-300x77.png 300w, https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/CUMULUS-Forced-Labor-Screen-FINAL-Logo_Large3-e1536609438670-768x197.png 768w, https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/CUMULUS-Forced-Labor-Screen-FINAL-Logo_Large3-e1536609438670-1024x263.png 1024w, https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/CUMULUS-Forced-Labor-Screen-FINAL-Logo_Large3-e1536609438670-1200x308.png 1200w, https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/CUMULUS-Forced-Labor-Screen-FINAL-Logo_Large3-e1536609438670.png 1377w\" sizes=\"auto, (max-width: 300px) 85vw, 300px\" \/>Verite launched the <strong>\u201cCUMULUS Forced Labor Screen\u201d<\/strong> &#x2122; membership platform in June at the <strong>Global Forum for Responsible Recruitment and Employment 2018<\/strong> in the city-state of Singapore.\u00a0 This is described as a technology-driven approach to using shared data for labor supply management and forced labor screening in supply chains.<\/p>\n<p>Member companies share information on a secure platform to map the labor of their supply chain partners \u2013 and those companies\u2019 recruiting agencies in both sending and receiving countries.<\/p>\n<p>The project was financed by <strong>Humanity United, Skoll Foundation<\/strong> and the <strong>Agnes Varis Trust<\/strong>, with concept testing in Southeast Asia (focused on companies in one sector, with 30 suppliers and 250 recruitment agencies in five countries being examined).<\/p>\n<p>Suggestion:\u00a0 This is something any company sourcing in East Asia should be interested in reviewing for possible impact on their enterprise.<\/p>\n<p>More information at: <a href=\"https:\/\/www.verite.org\/cumulus-forced-labor-screen\/\">https:\/\/www.verite.org\/cumulus-forced-labor-screen\/<\/a><\/p>\n<h2><strong>\u201cJust\u201d Business Behavior \u2013 New Goldman Sachs Investment Vehicle<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-1136\" src=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/Goldman-Sachs-Logo-300x147.jpg\" alt=\"\" width=\"300\" height=\"147\" srcset=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/Goldman-Sachs-Logo-300x147.jpg 300w, https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/Goldman-Sachs-Logo.jpg 480w\" sizes=\"auto, (max-width: 300px) 85vw, 300px\" \/>What is \u201cjust\u201d?\u00a0 The Oxford dictionary says this means\u00a0 &#8220;upright, fair, deserved, well-grounded, right\u201d and a bit more.<\/p>\n<p>So investing in a \u201cjust company\u201d or investment product means\u2026?<\/p>\n<p>According to <strong>Goldman Sachs Asset Management<\/strong> (<strong>GSAM<\/strong>), this year the firm launched the <strong>JUST U.S. Large Cap Equity EFT<\/strong> (ticker: &#8220;JUST&#8221;) which enjoyed the status of \u201csingle-ever exchange traded fund designed to align with the American public\u2019s priorities for just business behavior.\u201d\u00a0 Which is based on <strong>JUST Capital<\/strong> research \u2013 an organization partnering with Goldman Sachs.<\/p>\n<p>The revenues for the first day of trading in June 2018 were $250 million.\u00a0 Which also makes the product \u201cthe most successful ESG ETF launch ever, and in the Top 10 Equity ETF launches in history,\u201d says GSAM.<\/p>\n<p><em>What are the characteristics of a \u201cJUST\u201d U.S. company that would attract the investors\u2019 interest?<\/em><\/p>\n<p>Corporate behavior in \u201csome of the most pressing social issues of our time\u201d explains the company.<\/p>\n<p>Consider:\u00a0 \u00a0Worker pay and well-being. Customer treatment. Privacy protection. Beneficial products.\u00a0 The Environment. Job creation. Strong community relations.<\/p>\n<p>These are \u201canchored directly to the values and priorities of the American public&#8221; as identified through JUST Capital polling.<\/p>\n<p>The ETF tracks the <strong>JUST U.S. Large-Cap Diversified Index<\/strong> (\u201cJULCD\u201d), comprised of the top 50% of the <strong>Russell 1000<\/strong> in each industry.<\/p>\n<p>So what are the characteristics of the companies that are included (not excluded) in this approach?<\/p>\n<ul>\n<li>They are companies 2x more likely to pay nearly every worker a living wage.<\/li>\n<li>The companies create U.S. jobs at a 20% greater rate than peers.<\/li>\n<li>They employ 2x as many workers in the United States of America.<\/li>\n<li>These companies pay 70% <em>less<\/em> in fines for consumer-sales-terms violations.<\/li>\n<li>Their GhG emissions are 45% lower per dollar of revenue.<\/li>\n<li>They give 2x more to charity.<\/li>\n<li>They pay 94% <em>less<\/em> in <strong>Equal Employment Opportunity Commission<\/strong> fines.<\/li>\n<li>And \u2013 they have a 7% higher ROE than excluded firms.<\/li>\n<\/ul>\n<p>We also could define these companies at demonstrating leadership in <em>Corporate Citizenship.<\/em><\/p>\n<p>Says GSAM\/JUST:<\/p>\n<h3 style=\"padding-left: 30px;\"><span style=\"color: #3366ff;\"><em><strong>\u201cWe believe that business, and capitalism, can and must be a positive force for change.\u00a0 Our polling, rankings, indexes, and data empower all market participants \u2013 investors, business leaders, consumers and workers \u2013 with the information they need to invest in, purchase from, and work for companies that perform best on the issues they care about.\u201d (See above bullets.)<\/strong><\/em><\/span><\/h3>\n<p>The JULCD returned 32% (4.3% above the overall Russell 1000) for the period November 30, 2016 through June 1, 2018, says GSAM.<\/p>\n<p>The JUST Capital \u201c100\u201d companies include (at the Top 5)\u00a0\u00a0<strong>Intel<\/strong> (ranked #1), <strong>TI, NVIDIA<\/strong>, <strong>Microsoft<\/strong> (at #4) and <strong>IBM<\/strong>.<\/p>\n<p>Billionaire investor <strong>Paul Tudor Jones II<\/strong> built the foundation (JUST Capital) around the idea that companies could be an instrument for goodness\u2026focusing capital on human and financial \u2013 and being a change agent for societal betterment, a change agent for justness.\u00a0 There\u2019s a profile of Jones and the origins of JUST in this June <em><strong>New York Time<\/strong>s<\/em> article by the well-known financial writer <strong>Andrew Ross Sorkin<\/strong>. (<a href=\"https:\/\/www.nytimes.com\/2018\/06\/11\/business\/dealbook\/goldman-sachs-paul-tudor-jones.html\">https:\/\/www.nytimes.com\/2018\/06\/11\/business\/dealbook\/goldman-sachs-paul-tudor-jones.html)<\/a><\/p>\n<p>For information on JUST Capital:\u00a0 <a href=\"https:\/\/justcapital.com\/\">https:\/\/justcapital.com\/<\/a><\/p>\n<p>The JULCD Index: <a href=\"https:\/\/justcapital.com\/news\/julcd-index-update-q2-2018\/\">https:\/\/justcapital.com\/news\/julcd-index-update-q2-2018\/<\/a><\/p>\n<p>To see Goldman Sachs\u2019 performance through JUST Capital analysis: <a href=\"https:\/\/justcapital.com\/companies\/goldman-sachs\/\">https:\/\/justcapital.com\/companies\/goldman-sachs\/<\/a><\/p>\n<h2><strong>The SEC, ESG &amp; Sustainable Investing \u2013 Here&#8217;s Your Opportunity to (Still) Weigh In Two Years After the <em>Concept Release<\/em> Was First Published<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-567 size-thumbnail\" src=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2017\/11\/SEC-logo-150x150.png\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2017\/11\/SEC-logo-150x150.png 150w, https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2017\/11\/SEC-logo.png 300w\" sizes=\"auto, (max-width: 150px) 85vw, 150px\" \/>The staff of the <strong>U.S. Securities &amp; Exchange Commission<\/strong> during the <strong>Obama Administration<\/strong> years issued a \u201cConcept Paper\u201d seeking public input on how corporate financial and business disclosure could be improved.<\/p>\n<p>The good news that we saw was that in the 200-page outline, about a dozen pages addressed the issue of corporate ESG transparency and disclosure for investors.<\/p>\n<p>Hopes were high as the public responded with suggestions \u2013 sustainable investing as a topic might be near to be considered \u201cmaterial\u201d information by the SEC &#8230; and perhaps when the results of the examination were released there would be new interpretations, guidelines \u2013 something of recognition.<\/p>\n<p>The November 2016 election results changed many of the progressive ideas that were part of the public dialogue in the nation\u2019s capital.\u00a0 New players came to town.\u00a0 Policies changed \u2013 not for the better, in the view of champions of sustainable investing.<\/p>\n<p>Alas, &#8220;ESG&#8221;, \u201csustainability\u201d and \u201csustainable investing\u201d and related topic areas were ignored by SEC staff and the scope of action narrowed in 2018 when the SEC finally issued its ruling.<\/p>\n<p>In August the SEC adopted amendments to address corporate disclosure requirement that the Agency said were <em>duplicative, overlapping or outdated due to other SEC disclosure requirements, U.S. GAAP<\/em>\u00a0 &#8212; or changes \u201cin the information environment\u201d.<\/p>\n<p>The rules apply to public reporting companies (including foreign private issuers).<\/p>\n<p>Speaking to the moves, the new chair of the SEC, <strong>Jay Clayton<\/strong>, had this to say:<\/p>\n<h3 style=\"padding-left: 30px;\"><em><span style=\"color: #3366ff;\">\u201cThe President (Trump) has highlighted a key consideration for American companies and importantly, American investors and their families \u2013 encouraging long-term investment in our country. Many investors and market participants share this perspective on the importance of long-term investing. Recently, the SEC has implemented \u2013 and continues to consider \u2013 a variety of regulatory changes that encourage long-term capital formation while preserving and in many instances, enhancing key investor protections.<\/span><\/em><\/h3>\n<h3 style=\"padding-left: 30px;\"><em><span style=\"color: #3366ff;\">\u201cIn addition, the SEC\u2019s Division of Corporation Finance continues to study public company reporting requirements, including the frequency of reporting.\u00a0 As always, the SEC welcomes input from companies, and other market participants as our staff considers these important matters.\u201d<\/span><\/em><\/h3>\n<p>The SEC issued \u201cDisclosure and Simplification\u201d Final Rule (for <strong>Regs S-X<\/strong> and <strong>S-K<\/strong>) in Spring 2018 &#8212; and ignored the input of the many asset owners, asset managers and other market players responding to the agency\u2019s Concept Release.<\/p>\n<p>\u201cMany\u201d includes the responses by sustainable investing advocates and practitioners. The Agency says the\u00a0<strong>Final Rule<\/strong> contains \u201crelatively more discrete changes\u201d than those proposed in response to the <em>Concept Release.<\/em><\/p>\n<p>Those making positive suggestions in response to the invitation of the <em>Concept Release<\/em> included the <strong>AFL-CIO<\/strong>; <strong>CalPERS<\/strong>; <strong>Public Citizen<\/strong>; <strong>Domini Funds<\/strong>; <strong>the FACT Coalition<\/strong>; and many other sustainable &amp; responsible investing players.\u00a0 \u00a0Of course, we can assume that these are not generally viewed with favor by the new SEC players in this current political era.<\/p>\n<p>We should not give up &#8212; the invitation is out to send your views to the chair of the SEC for further discussion on the <em>Concept Release<\/em> (that was issued April 13, 2016 (\u201cBusiness and Financial Disclosure Required by Regulation S-K\u201d).\u00a0 The pressure for greater corporate disclosure related to ESG performance, <em>et al<\/em>, is greater than two years ago and continuing to rise.<\/p>\n<p>To refresh our memories, here is the text in the <strong><em>Federal Register<\/em><\/strong>: <a href=\"https:\/\/www.federalregister.gov\/documents\/2016\/04\/22\/2016-09056\/business-and-financial-disclosure-required-by-regulation-s-k\">https:\/\/www.federalregister.gov\/documents\/2016\/04\/22\/2016-09056\/business-and-financial-disclosure-required-by-regulation-s-k<\/a><\/p>\n<p>There are about four dozen references to \u201csustainability\u201d in the document and 1,100 comments to review.<\/p>\n<h2><strong>Printing Industry Sustainability \/ Certification<\/strong><\/h2>\n<p>The printing industry is still with us, despite the continuing shift out of \u201cpaper\u201d and to digital publishing of all kinds.\u00a0 Printing companies are adapting in many ways including the adoption of sustainable practices to guide the industry&#8217;s companies in prioritizing <em>environmental stewardship<\/em> and other considerations.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-1137\" src=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/LIFE_And_SGP-300x237.jpg\" alt=\"\" width=\"300\" height=\"237\" srcset=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/LIFE_And_SGP-300x237.jpg 300w, https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/LIFE_And_SGP.jpg 432w\" sizes=\"auto, (max-width: 300px) 85vw, 300px\" \/>Two certification organizations for the industry have merged.\u00a0 These are <strong>TLMI<\/strong> and <strong>SGP<\/strong>, a non-profit organization.<\/p>\n<p>TLMI is merging is <strong>L.I.F.E<\/strong>. (\u201cLabel Initiative for the Environment\u201d) certification with the <strong>Sustainable Green Printing Partnership<\/strong> (\u201cSGP\u201d) certification program.<\/p>\n<p>SDG certifies printing facilities\u2019 sustainability best practices; it is supported by <strong>Printing Industries of America<\/strong> (PIA); <strong>Flexographic Technical Association<\/strong> (FTA); <strong>Specialty Graphic Imaging Associatio<\/strong>n (SGIA); and, the <strong>National Association of Print Ink Manufacturers<\/strong> (NAPIM).<\/p>\n<p>The SDG brand leaders program engages with print buyers and retail brands \u2013 companies such as <strong>3M, International Paper, EFI, ECOR, FlexCOM, North American Plastics, Piedmont Plastics, Gilman Brothers<\/strong>, and other leading brand companies.<\/p>\n<p>Check and see if these companies are in <em>your <\/em>supply chain.\u00a0 There is information at:\u00a0 <a href=\"http:\/\/www.sdgpartnership.com\">www.sdgpartnership.com<\/a><\/p>\n<h2><strong>Perspective from the Governance &amp; Accountability Institute Team<\/strong><\/h2>\n<p>The developments in Q2 and into Q3 of calendar year 2018 continued to move the needle forward for corporate sustainability \/ responsibility \/ citizenship \/ ESG and for sustainable investing approaches by asset owners and their managers.<\/p>\n<p>Despite a pushback by the national government in the United States\u00a0 on environmental protection measures and the move to withdraw from the <strong>Paris Agreement<\/strong> on climate change (&#8220;COP 21&#8221;), the good news is that public company boards and managements, leaders of states and cities in the U.S. and domestic and international civic organizations are pressing forward to implement the measures needed to address climate change challenges.\u00a0 And to meet the goals of the Paris Agreement.<\/p>\n<p>We\u2019ll continue to update this series going into Q3 and Q4, especially after the coming climate change and sustainability events scheduled for September (such as at the <strong>United Nations<\/strong> in New York and the <strong>California<\/strong> climate summit) and on to December.<\/p>\n<p>You\u2019ll find other management briefs on this platform dealing with single subject \/ topic developments.<\/p>\n<p>As always, we would like to hear from you and know what you are interested in learning more about in these briefs.<\/p>\n<p><a href=\"https:\/\/www.ga-institute.com\/research-reports\/trends-converging-a-2016-look-ahead-of-the-curve.html\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-1138\" src=\"https:\/\/ga-institute.com\/to-the-point\/wp-content\/uploads\/2018\/09\/Trends-Converging-Cover-200x300.jpg\" alt=\"\" width=\"200\" height=\"300\" \/><\/a>We invite you again to <a href=\"https:\/\/www.ga-institute.com\/research-reports\/trends-converging-a-2016-look-ahead-of-the-curve.html\">download a complimentary copy of G&amp;A Institute Chair &amp; Chief Strategist Hank Boerner\u2019s book \u2013 Trends Converging<\/a>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Continuing our commentary on the theme advanced by MSCI\u2019s Linda Eiling Lee \u2013 that 2018 would be a year of Volume and Velocity with rapid, dramatic changes in sustainable investing and corporate sustainability, we bring you this update as the \u201cnew business year\u201d begins after the passing of Labor Day in the U.S.A.<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[193,328,1920,1945,1854,563,1870,1898,1862,1868,1811,1940,1913,1896,1895,1947,496,1647,302,1883,32,392,1907,1894,1914,1893,948,1915,1948,556,631,1943,1188,1899,1903,1865,1866,1900,1951,832,1932,1848,1909,1877,1876,1926,1933,1878,1886,1944,536,1422,253,1916,1853,1881,1922,1929,1846,1928,1946,295,1897,914,1673,437,317,1867,837,318,1875,1934,1924,1927,1901,1812,1721,1902,1182,1680,1864,838,1873,1906,1874,1093,1917,1890,1889,1858,1879,1857,1942,644,1892,1676,1257,555,934,1925,1861,1885,1880,1910,1884,1939,747,1931,1813,1911,479,1882,1912,1872,1891,78,1856,208,1888,1936,1919,1863,1887,153,1904,1852,1871,1860,1847,47,1950,1937,1859,1079,1941,1935,1850,1849,1715,1869,1905,1918,1189,561,322,186,1908,1190,1184,1170,1855,1921,1930,1851,1923,1938,1845,1949,1499],"class_list":["post-1132","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-3m","tag-afl-cio","tag-agnes-varis-trust","tag-agriculture-industry-risk","tag-albertsons","tag-amazon","tag-ameren","tag-american-express","tag-american-outdoor-brands","tag-amerisourcebergen","tag-anadarko-petroleum","tag-andrew-ross-sorkin","tag-anti-bribery-and-anti-corruption-policy","tag-bath-beyond","tag-bed","tag-bill-of-rights","tag-blackrock","tag-boston-common-asset-management","tag-calpers","tag-chair-jay-clayton","tag-climate-change","tag-climate-risk","tag-cms-energy","tag-coal-ash","tag-code-of-professional-conduct","tag-compensation-clawbacks","tag-concept-release","tag-conflict-of-interest-certification","tag-constitution-of-the-united-states-of-america","tag-cop-21","tag-corporate-proxy","tag-corporate-proxy-resolution","tag-costco","tag-costco-wholesale","tag-cvs-health","tag-delta-airlines","tag-dicks-sporting-goods","tag-discover-financial","tag-division-of-corporate-finance","tag-division-of-corporations","tag-domini-funds","tag-domini-impact-investments","tag-dominion-resources","tag-ecor","tag-efi","tag-equal-employment-opportunity-commission","tag-fact-coalition","tag-flexcom","tag-flexographic-technical-association","tag-food-industry-risk","tag-forced-labor","tag-fta","tag-ga-institute","tag-gba","tag-giant","tag-gilman-brothers","tag-global-forum-for-responsible-recruitment-and-employment-2018","tag-goldman-sachs-asset-management","tag-grocery-retailing","tag-gsam","tag-guns","tag-hank-boerner","tag-hersheys","tag-hewlett-packard","tag-humanity-united","tag-ibm","tag-iccr","tag-institutional-investor","tag-intel","tag-interfaith-center-on-corporate-responsibility","tag-international-paper","tag-just-capital","tag-just-foundation","tag-just-u-s-large-cap-equity-eft","tag-keycorp","tag-kinder-morgan","tag-kroger","tag-marriott","tag-mcdonalds","tag-mercy-investments","tag-metlife","tag-microsoft","tag-middleby","tag-minerals-technologies","tag-moodys-corporation","tag-moodys-investor-service","tag-moodys-green-bond-assessments-green-bonds","tag-napim","tag-national-association-of-print-ink-manufacturers","tag-national-rifle-association","tag-north-american-plastics","tag-nra","tag-nvidia","tag-obama-administration","tag-opiod-risk","tag-oxfam","tag-paris-accord","tag-paris-agreement","tag-paris-cop-21-agreement","tag-paul-tudor-jones","tag-pay-pal","tag-pia","tag-piedmont-plastics","tag-policy-on-anti-competitive-rating-practices","tag-printing-industries-of-america","tag-printing-industry-sustainability-certification","tag-proxy-resolutions","tag-public-citizen","tag-range-resources","tag-receipt","tag-reg-fd","tag-reg-fx","tag-review-and-retention-of-external-complaints","tag-ruger-co","tag-sdg","tag-sec","tag-second-amendment","tag-securities-exchange-commission","tag-sgia","tag-sgp","tag-skoll-foundation","tag-smith-wesson","tag-specialty-graphic-imaging-association","tag-square","tag-starbucks","tag-stop-shop","tag-sturm","tag-sturm-ruger","tag-supermarkets","tag-supply-chain","tag-sustainable-etf","tag-sustainable-green-printing-partnership","tag-the-iccr-statement-on-gun-violence","tag-the-new-york-times","tag-ti","tag-tlmi","tag-tri-state-coalition-for-responsible-investment","tag-trinity-health","tag-tyson-foods","tag-tysons-foods","tag-us-steel","tag-verite","tag-wal-mart","tag-wal-mart-stores","tag-walden-asset-management","tag-water","tag-wec-energy","tag-whole-foods","tag-yum-brands","tag-zevin-asset-management","tag-behind-the-barcodes-scores","tag-cumulus-forced-labor-screen","tag-disclosure-and-simplification-final-rule","tag-human-suffering-should-never-be-an-ingredient-in-the-food-we-buy-from-supermarkets","tag-just-business-behavior","tag-label-initiative-for-the-environment","tag-the-behind-the-barcodes-investment-statement","tag-these-churches-buy-shares-in-gun-companies-their-goal-confront-them","tag-trends-converging"],"acf":[],"_links":{"self":[{"href":"https:\/\/ga-inst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