ESG Share buybacks: Innovative ESG Finance

An innovation in ESG finance is taking root. An essential part of the “S” of ESG is the commitment to stakeholders. Returning money to shareholders rather than investing in negative NPV projects is one such commitment. In an ESG buyback, a company allocates part of the outperformance of its share buyback to the funding ofContinue reading “ESG Share buybacks: Innovative ESG Finance”

The Investor Relations Officer for a Net Zero World

Companies are facing a brutal assault from many fronts: Activist investors like Engine no. 1 has brought oil majors to its knees. Large institutional investors like BlackRock, Vanguard are pushing companies to up their ESG game. Customers are up in arms and are pushing companies through their role as shareholders in making their products andContinue reading “The Investor Relations Officer for a Net Zero World”

The Evolution of Materiality: Double to Dynamic

Materiality is a fundamental concept in accounting. A piece of information is material if it influences someone’s decision. According to the US SEC, if the information on a company is material, it should be disclosed if a reasonable person considers it important.Information that is material in one setting may not be material in another. Typically,Continue reading “The Evolution of Materiality: Double to Dynamic”

Linking Executive Compensation and ESG: Navigating a Minefield

ESG issues are shaking up boards and CEOs. As a result, companies are increasingly considering tying CEO compensation to ESG issues. Some of the marquee companies that link executive compensation to ESG include Apple, McDonald’s, Rio Tinto, Royal Dutch Shell, and Unilever. European and British companies have taken the lead. According to a survey byContinue reading “Linking Executive Compensation and ESG: Navigating a Minefield”