Remember those 1970s /early ‘80s ubiquitous TV commercials with the tag line, “When EF Hutton Speaks, People Listen?” The point was that when the EF Hutton financial services firm “said” something about investing possibilities, we would be wise to sit up and listen carefully to the advice. These days we are tuning in to the Securities & Exchange Commission to discern the future directions of corporate sustainability / ESG disclosure. To us it is clear: the broadening flow of comments indicates something is about to happen regarding corporate ESG disclosure.
The required financial reporting by publicly-traded companies is assured by third parties. The SEC rules require public companies to have an annual audit; audited financial statements have an opinion included from the auditing firms. Objective: determining if the statement presents information fairly and in line with GAAP (Generally Accepted Accounting Principles).
What are the steadily rising investor expectations for the corporate sectors’ climate change actions and expanded disclosures? We can examine the expectations of leading asset owners/fiduciaries and their asset managers to understand their views on the ESG / sustainability disclosure practices of issuers they provide capital to. This includes keeping close watch on individual institutions and especially the collaborations of investment organizations they participate in.
For example, asset owners and external asset managers are asking many more questions now about the sustainability journey of the companies they are invested in, including ESG strategies, actions, performance, metrics, outcomes, recognitions, and more.
Eons ago as then-existent forms of life on Earth died off, decomposing remains became fossils…or relevant to current “heated” conversations about the future of energy, the stuff of today’s “fossil fuels.” Coal, crude oil, natural gas. As National Geographic explains for us, these fuels found in the Earth’s crust contain important amounts of carbon and hydrogen, which can be burned to create the energy we need in our modern times.
The Biden-Harris Administration continues to roll out details of new, proposed or adjusted policies, rules, programs, federal government financing plans (budgeting) and various actions to address what the leaders characterize as “the climate crisis”.
Business and financial activities in “APAC”, the Asia / Pacific Basin Region are vital to the economies of the rest of the world. Think of the region’s leading sovereign economies…in order of magnitude, consider the impact of the economies of China, Japan, India, South Korea, Australia, Indonesia (these are the top economies).
P/E world: Private equity firms often have a pool of companies wholly owned or invested in and managed and advised by them in portfolio …this is the ambitious domain of the private equity (P/E) universe.
The leading publicly-traded P/E leaders are familiar names to institutional investors: Blackstone (NYSE:BX), The Carlyle Group (NASDAQ:CG), Apollo Global Management (NYSE:APO), and Kohlberg, Kravis Roberts (NYSE:KKR). There also well-known P/E companies not publicly-traded such as TPG Capital and Bain Capital (which owns, invests in and advises portfolio entities).
A small pebble dropped into a pond will send out ripples that carry across the stretch of water, bouncing off the opposite shore and sending waves back. “Ripple effect” is something we hear often as a business metaphor. We are focused today on the powerful ripple effect of carbon emissions through the economy, through a company’s global supply chain, and on through the regulatory universe as more governments take up pricing schemes on emissions, and so on.