Tag Archive for ‘ESG’
Fiduciary responsibility “has often been defined exclusively in financial terms, such as maximizing returns to provide for retired employees,” the firm said. “However, there is growing discussion that the way in which those returns are achieved is just as important.” BNY Mellon has $22.3 trillion in assets under custody or administration and $1.1 trillion under management.
A small but growing group of pioneering companies are increasingly aware of the power that policies on executive pay can exert on sustainability behavior. One challenge: linking today’s compensation package to policies and practices whose impact may not be felt for many years to come.
Can poor corporate governance practices serve as an indicator of bad management, higher risk and – potentially – disaster? In the case of Massey Energy Corp., operator of a West Virginia coal mine where at least 25 people were killed in an accident this week, the answer is yes, according to a leading corporate governance research firm.
It’s fascinating to watch as major global businesses engage, however imperfectly, in the process of reporting on matters that only a few years ago would have been left for legal counsel to explain and defend in courts or regulatory hearings. How should a food giant like Kellogg handle a sticky health problem involving salt? Or a supply chain issue involving peanuts?
When do you know that ESG (or factoring environmental, social, and governance issues into investment and corporate decisions) has gone mainstream? One signal would be the agenda of last week’s meeting of the Securities and Exchanhe Commission’s Investor Advisory Committee, which included items such as “ESG Disclosure Work Plan” and “Proxy Voting Transparency.”
Information on issues related to the environment, society and governance – what’s known in the investment community as “ESG”- is becoming an increasingly important commodity as institutional investors seek data to drive their portfolio decision-making. The most recent news in that regard is Thomson Reuters’ acquisition of Swiss environmental, social responsibility and governance data provider ASSET4.