This originally appeared in Bloomberg Markets Magazine
Getting a handle on environmental, social, and governance information has become more crucial for investor relations officers and other corporate executives. A lot of money is invested in accordance with ESG-related guidelines these days. The 1,380 institutions that have signed the United Nations’ Principles for Responsible Investment, for example, oversee $59 trillion of assets.
I have read the Wall Street Journal cover-to-cover nearly every business day for the last 20 years. It’s been a central part of my financial education, and has allowed me to research a myriad of topics that I did not immediately understand. Steadily, I have increased my knowledge of highly specialized financial structures and concepts.
Impact Investing: Aligning Capital with the Conservation of Nature
By Mark R. Tercek, President and CEO of The Nature Conservancy
Today's environmental challenges are bigger than ever. And a rapidly growing population coupled with climate change will only exacerbate current threats. Big challenges like these will require bold solutions. The environmental movement must try new approaches and scale up our work so it’s bigger, better and faster.
Computer-driven financial markets on unregulated electronic exchanges programmed by algorithms now dominate Wall Street, along with high-frequency trading (HFT). The infamous “Flash Crash” in May 2010, driven by electronic trading, caused stocks in many 401Ks to suddenly fall to pennies and recover in split seconds. Small investors lost confidence, pulling some $70 billion out of stock markets.
As I watch the revealing impact of the storm in the US and the power of nature wreaking havoc on the financial heartland of the US I wonder if we are witnessing thepivotal moment in the US climate change debate?
Eleven U.S. companies have been added to the FTSE4Good Index. Among them are Direct TV, Ecolab, Equifax, Health Care REIT, Tiffany and Company, The Hillshire Brands, DaVita, and Waste Management. The FTSE4Good Index Series has been designed to objectively measure the performance of companies that meet globally recognized corporate responsibility standards.