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”
Tag Archives: #ESG
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”
Climate Bad Banks for Stranded Assets
Stranded assets are becoming a reality. Take the case of thermal coal. It is widely recognised that thermal coal is no longer a growth opportunity. This is coupled with the fact that debt financing grew sharply and leverage ratios have skyrocketed. A bulk of financing for thermal power plants has come from debt. With thermal power plantsContinue reading “Climate Bad Banks for Stranded Assets”
