Before we get to the article, thought you’d like to check out some websites to get your ESG skill set up:
•Principles for Responsible Investment: www.unpri.org/sustainability-issues
•UN Sustainable Development: www.un.org/sustainabledevelopment/sustainable-development-goals
•Sustainability Accounting Standards Board: www.sasb.org/standards-overview/materiality-map
•Global Reporting Initiative: www.globalreporting.org/how-to-use-the-gri-standards
•Task Force on Climate Related Financial disclosures: www.fsb-tcfd.org/about/
•ESG Clarity: www.esgclarity.com
Plus my stuff:
Video of Future Economy: Environment
Deep dive research: ESG: a major opportunity
On to the article…
ESG remains one of the hottest investment themes over the last 10-years but has truly picked up pace since President Biden came to power. The cause is simple…
Both the Fed and Biden had big meetings this week. Biden gave a “this-is-not-a-state-of-the-union” state of the union address on part 2 of his “infrastructure” plans. The Fed had a “we’re-not-tapering-and-inflation-is-temporary” meeting on monetary policy. Let’s quickly dive into both to see if we and the markets learned anything new for the economy.
The Fed met first this week and left policy unchanged. This was not a surprise and had been telegraphed out to every economist, trader and politician ahead of time. What this means is that the outcome was pre-ordained, and no surprises were had. (I’m guessin’ Sen. Cruz…
Is it big? Yes. Is it bold? Yes. And we can get it done.
Fact Check: these are all true.
At the Carpenters Pittsburgh Training Center, President Biden formally announced his $2 trillion plus “American Jobs Plan” (AJP) targeted at increasing growth in jobs for the US economy. This is not merely an infrastructure plan, but truly a wide ranging spending plan covering a gamut of goodies areas outside of roads, bridges and tunnels. Candidate Biden proposed many of these during the campaign and is following through on those promises. Unlike the…
The key factors driving demand
As the torrent of money into ESG vehicles continues to flow, the question running through many people’s minds is “why now?” To me, there are three major factors driving the interest. First, COVID and climate change related natural disasters. Second, the recent assessment report from the UN Intergovernmental Panel on Climate Change (IPCC). Third, the upcoming Oct/Nov. COP 26 UN Climate Change Conference. Each of these should be no surprise to anyone closely following ESG investments, but each of these is occurring in a close sequence helping drive investor demand.
It’s all about education, but not the kind you think…
There is a global infection surge of the Delta COVID variant driving governments and companies to enact policies to reduce the risk. New Zealand, China (selective provinces/ports) and Hawaii are prime examples of governments moving to control the outbreak. Companies are also moving to control the surge with hospitals leading the way requiring employee vaccinations and mandatory masks. United Airlines and Tyson Foods have required their employees to get the vaccine. Even the US Defense Departmentis going to require vaccinations.
Typically, a good preacher will understand what is causing concern and angst in their community and more broadly, the world. Then she/he will connect this to faith and how it can provide strength to overcome the difficult times. COVID, earthquakes in Haiti and forest fires in California all come to mind as examples of things causing concern. Today, I was listening to a visiting preacher and was surprised by what he added to this list: rapidly rising home and rental prices.
Home and rental prices have increased so intensely that it’s being brought up in church.
With this in mind…
The US releases its monthly unemployment rate and non-farm payroll data on Friday. The charts below show the rapid recovery in jobs since the reopening as over 14.7m jobs have been created. Yet, the country appears to have stalled out with reducing the massive number of jobs lost during the COVID shutdown.
Let’s look at three additional labor statistics to get an understanding of this odd situation.
According to NFIB’s June monthly jobs report, 46% of small business owners reported job openings they could not fill in the current period, down two points from May but still above the 48-year…
Yesterday, the European Union released a sweeping 30-year plan to achieve net zero and reshape the economy. This has broad implications for every EU sector. The plan also has implications for the world including the United States infrastructure plans.
The EU plan includes carbon pricing as the key component to placing a cost on emissions. The Emissions Trading Scheme or ETS is a revamp of the previously ineffective 2005 carbon market. The pay forces large emitters, like power generators and steel makers, to buy credits to cover the cost of their carbon production. The new plan broadens the scope of…
How Sen. Joe Manchin now controls the US Senate and the Federal Reserve
(All the research articles’ urls used to create this are at the end)
Let’s do a quick run through two topics impacting the economy and markets.
Federal Reserve monetary policy. On Wednesday, the Fed left interest rates and monetary policy unchanged. This was not a surprise. (Statement and Presser)What did change was the members’ expectations on inflation and when they would begin to raise interest rates. On inflation, the number of members on the committee thinking inflation had risks to the upside jumped from 5 to 13…
Why Biden’s policies are in danger
The inflation story keeps getting legs as more and more companies are citing inflation concerns in their investor calls and interviews. As a matter of fact, The word “inflation” is being mentioned in post-earnings conference calls by the most companies in at least 11 years, enough to set a fresh record, according to research provided by FactSet.
As an example, the CFO of retail giant Costco Richard Galanti said this on the company’s latest earnings call:
“Chips shortages are impacting many items from an inflation standpoint, some items more than others. And with regard…