There is no single and correct way for a company to adopt good ESG practices, but it’s clear that major institutional investors are increasingly judging companies by ESG criteria.
Tag Archives | governance
What is the difference between ESG as measured by the Dow Jones Sustainability Australia Index, and taking an approach that includes ethical factors?
More investors than ever are expecting fund managers to allow for Environmental, Social and Governance (ESG) issues, but what are the major factors for 2019?
The Commonwealth Bank’s reputation has taken a battering at the Royal Commission, and a veteran of 13 years on the top table of the Bank’s Executive Committee explains what went wrong and where we should head.
The Royal Commission focusses heavily on poor incentives amid a sea of damnation and exhaustively-documented case studies, but does not provide answers, especially on the vexed issue of best interests.
The SMSF of a person who has lost mental capacity faces multiple risks including the fund’s control falling into wrong hands. These risks can be guarded against with a proper strategy in advance.
A reader responded with detailed comments on the need for board members and the Chair to have relevant expertise in the company’s industry. Please join the debate.
For many investors, allocations to emerging markets over the years have proved disappointing. An emphasis on corporate governance and social issues can help unlock some of the potential.
Hostile takeover battles can produce heated disputes between company directors, managers and shareholders. What’s in the company’s long term interests and who decides? Does shareholder activism aid or hinder?
When assessing the quality of a business, all the statistics, ratios and reports in the world cannot give you an accurate view of the human element of its management.
When a company fraud is uncovered there are many losers, and companies are not run to benefit bondholders. The main protection against such unforeseeable risks is to maintain a well-diversified portfolio.
Banks are walking away from resources projects, super funds are dumping stocks based on human rights issues and climate change related shareholder resolutions are gaining wide support.
The mandating of independent directors for Australian super funds is facing resistance. While it’s difficult to define ‘independence’, global experts on board governance provide support for the government’s stance.
History has shown that there are many investment frauds and schemes out there intent on parting investors with their savings. This is a reminder to be wary of things that look too good to be true – because they probably are.
The UN-supported Principles for Responsible Investment (PRI) initiative helps navigate the increasing environment, social and governance issues that face us today. What’s next on the ‘to do’ list?
A dedicated shareholder activist is an investor who actively seeks out companies with the intention of engaging directly with the board and management to address flawed strategies.