The Proof in the Pipeline: Fossil Fuels and Social Inequality

Arina Abbott oversees marketing at Green Alpha Advisors, an asset manager that invests public equities in the innovation-driven, sustainable economy. While fossil fuel risk has reared its ugly head in the form of blazing fires, stronger storms, and oil-stained beaches, the U.S. remains home to the highest number of climate change deniers in the world. Meanwhile, systemic inequality has continued …

Reflections on Environmental Alpha

Matthew J. Kiernan, PhD Chief Executive, Inflection Point Capital Management Matthew is the author of Chapter 6, “SRI or Not SRI?”, in Environmental Alpha: Institutional Investors and Climate Change.   As I write this, COP21 in Paris is scant weeks away, and the results there may make a mockery of much of what I say here, but here goes a …

Corporate Responsibility and Environmental Investing | The JEI

Tony Hoskins, MBA         Tony is the co-author with Martin Batt of Chapter 15, “Corporate Responsibility, and Environmental Investing,” in Environmental Alpha: Institutional Investors and Climate Change.   In 2009, when Environmental Alpha was published, considerable pressure was on corporations to take greater responsibility for their environmental impacts and for their investors to take those impacts into account …

Impact through Shareholder Engagement

Tim Smith Director of Environmental, Social & Governance Shareholder Engagement, Walden Asset Management       In the early 1970s, business history was made when religious investors filed the first shareholder resolutions on a social issue. The company was General Motors and the issue was GM’s investment in South Africa, a country known for apartheid and racial segregation. In those …

On Socialism, Price, and Sustainability

  Todd Cort, BS, MS, PhD Yale School of Management and Yale School of Forestry and Environmental Studies       Juan-Victor Seminario, BA, MBA, MAM  WaterAid America       Why did socialism fail? Apologies to those in Venezuela and Cuba, but I refer to the grand experiments in socialism undertaken by the Soviet Union and China. In both …

Portfolio Management Must Become Existentially Conservative | The JEI

Garvin F. Jabusch, Cofounder and Chief Investment Officer of Green Alpha®Advisors, LLC Traditional asset management spends a lot of time worrying about traditional macroeconomic indicators. Slowing Chinese growth. Eurozone GDP. The latest gyrations in gold. And in the short term, these things can and do cause market volatility. Yet history has shown over and again that these and their like present …

The Risks and Returns of Fossil-Fuel-Free Investing

  John Willis Portfolio Manager, Sustainable Insight Capital Management Paul Spence Head of Portfolio Construction & Analytics, Sustainable Insight Capital Management   1 Executive summary There is a persistent debate surrounding fossil-fuel-free investing. Financial market participants are examining the implications of such strategies with increasing scrutiny. In this paper, we analyse the performance of three different fossil-fuel-free portfolios, all against …

Optimal Diversification and the Energy Transition | The JEI

  Jakob Thomä, 2° Investing Initiative / Conservatoire National des Arts et Métiers Stan Dupré, 2° Investing Initiative Alexandre Gorius, Paris Dauphine University Manuel Coeslier, 2° Investing Initiative / Mirova / Ecole Centrale de Nantes, Audencia School of Management Danyelle Guyatt, PhD, Collaborare Advisory Abstract Capital allocation decisions in equity markets are significantly influenced by market capitalization-weighted indices. They are …

Reinvesting after Divesting: A Few Fossil-Fuel-Free Options

Robert Schwarz, MBA, MS Although much has been written lately in the responsible investing (RI) space about divestment from fossil fuels, very little of the content identifies actual market-based capital re-allocation choices for investors who want to adopt a fossil-fuel-free (FFF) investing strategy. Investors may be armed with a basic understanding of the issues, but they lack the full capacity …