Earnings Calls and ESG

Companies periodically provide financial and increasingly non-financial information to the public to reduce the information asymmetry between investors and the company. Apart from annual reports, communication takes place through three mechanisms: (a) investor’s day, (b) earnings calls and (c) guidance calls. While some companies have started ESG calls, they are not particularly common. The timeContinue reading “Earnings Calls and ESG”

Where organisations go wrong on sustainability

The climate crisis has firmly pushed organisations to be more sustainable (or ESG-centric). While many organisations have done well and are on the path to becoming sustainable, others have struggled in their endeavours. Here are some roadblocks that hinder companies from becoming sustainable. Hierarchical mindset: The organisational culture is that of obedience. Employees only doContinue reading “Where organisations go wrong on sustainability”

Profit and Purpose

In the movie Other People’s Money, an exciting debate between Larry the Liquidator (Danny Devito) and Andrew Jorgensen (Gregory Peck) highlights the current discussion of the trade-offs between profit and purpose. Larry the Liquidator insists that the prime objective of business is to make money, while Andrew Jorgensen stresses the needs of the stakeholders. CompaniesContinue reading “Profit and Purpose”

ESG Investing and the Long-Short Strategy

ESG investing has been growing exponentially. According to Bloomberg, ESG assets are likely to rise to $53trillion by 2025, comprising a third of the global AUM. Most investment strategies are either exclusionary (do not buy “bad” stocks) or buy-and-hold. However, a relatively new strategy to ESG investing is the long-short strategy. This strategy involves buyingContinue reading “ESG Investing and the Long-Short Strategy”