Monthly Archives: June 2014

June Edition of the Cornerstone Journal of Sustainable Finance & Banking

Wave Break Media Ltd/Crystal Graphics

This month’s edition of the Cornerstone Journal of Sustainable Finance & Banking (JSFB) puts the focus on “Sports, Media and Entertainment,” understanding the broad influences they have on cultures, businesses and nations. Against the backdrop of a World Cup tournament drawing interest from fans across the globe, we look at important issues around governance in professional sports, across sectors and within regions … notably, India.

What’s the Score?

Wave Break Media Ltd/Crystal Graphics

The June edition of the Cornerstone Journal of Sustainable Finance & Banking puts the focus on “Sports, Media and Entertainment,” understanding the broad influences they have on cultures, businesses and nations.

Top Sports, Media & Entertainment Brands: A Focus on ESG Metrics

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION Since 2009, Bloomberg has been uploading key corporate ESG metrics to its database from companies’ own financial and sustainability reports. They have over 800 data points – 10 to 12 are considered key ESG metrics for all companies to disclose to the capital markets.  Sustainability… Read more »

The Last Ship

The Last Ship logo

I am a producer of Broadway musicals who has been nurturing my obsession with the form since appearing in my first musical, a temple Purim play, in the fourth grade. Instead of repeating the Old Testament story of Queen Esther, our ingenious director juxtaposed our Jewish heroine’s quest to save the Jews from the evil… Read more »

The Cornerstone Capital Strategy Update

copyright MSEN/Crystal Graphics

In the April edition of The Cornerstone Journal of Sustainable Finance & Banking we introduced the Cornerstone Capital Regional Strategy Model in which we ranked seven of the world’s regions/major economies. At the time, we excluded Australia and Canada but, following client feedback, we are now incorporating those two countries in our model – Australia as a stand-alone country, and Canada as part of the North America region….

Embracing the New Market Opportunity: LGBT+A

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The traditional courting of the “gay market” ignores a much larger market opportunity. LGBT friends and family i.e. Allies, are showing their support not only as citizens, but also as consumers — making purchasing decisions that align with their views on LGBT equality. The latest estimates (2012) put the total buying power of the adult LGBT population at nearly $800B. When you add Allies, that number is far greater. This is the “LGBT+A” market.

TheLastSeat.net

©Mopic/Shutterstock

“Intentionality” has been a word used a great deal lately as the definition of “Impact Investing” has been evolving. Front and center is the clearly stated intent to not only drive financial returns, but to seek measurable positive impact towards societal and environmental goals. In this note we simply argue for the same kind of… Read more »

Jazz Inspired Finance

Sergey Nivens/Crystal Graphics

Imagine if capitalism could harness the power of communication, collaboration and culture. Imagine if capitalism could serve its best and highest purpose of driving global economic prosperity. Imagine if capitalism were in the hands of leaders who strive for both long-term corporate profitability and to meet the needs of society for better nutrition, healthcare, education,… Read more »

The Last Ship

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION The Last Ship is about finding pride in our work. Work that gives purpose to our lives. Work that helps forge our identity and contributes something tangible to society. It’s about community and being responsible to each other. It is our contribution to the… Read more »

The Cornerstone Capital Sector Strategy: Incorporating ESG Factors into Media Sector Valuations

Jun14_GeraghtyMedia_shutterstock_162487649 ploxii 72dpi

Cornerstone Capital’s sector strategy model is overweight on the MSCI ACWI Consumer Discretionary Index, which contains a number of global media industries including Cable & Satellite (9% of the index’s market cap, the second largest weight after Auto Manufacturers), Movies and Entertainment (7% weight, fourth-largest in the index), and Casinos & Gaming (4% weight, tenth… Read more »

Principles of Responsible Gaming

roulette

A Chinese proverb says, “If you must play, decide upon three things at the start: the rules of the game, the stakes, and the quitting time.” Unfortunately, in not heeding this advice, some casual gamblers find themselves grappling with gambling addiction. Partly because of the well-documented adverse effects of compulsive gambling, a subset of ethics-based investors exclude gaming companies, along with other “sin stocks,” from their investment universe…

首席执行官关于可持续金融和银行业的致辞 – The Cornerstone JSFB CEO’s Letter in Mandarin, June 2014

首席执行官关于可持续金融和银行业的致辞 在这期的“Cornerstone 可持续金融和银行业的月刊”里, 我们注意到全球市场进一步走高,在伊拉克局势动荡和原油价格不断波动的情况下大胆迈进。虽然地区增长差别显著,但是我们看到了中国国家总理李克强所做的中国不会硬着路的“保证”。相比之下, 当通用汽车的Mary Barra在努力改变根深蒂固的文化时,他们的高管团队却不能做出这样的保证。其它的在这个月上演的“戏剧”包括关于公司税收策略, 奥巴马执政部门的环保局碳排放计划,全球出租车业对Uber颠覆性创新,特斯拉史无前例的为了促进电动车行业增长的专利共享策略等的讨论. 但是,所有这些在和2014年世界杯所受到的关注相比都顿然失色,因为历史上最长的“头版”展示了最漂亮游戏的最好一面。 这个月我们想借此机会来关注“运动,传媒, 和娱乐”这个主题,了解他们对商业,民族,和文化的广泛影响。 到世界杯的总决赛大概还有几个星期,但是美国团队和赞助商花费的几十亿仍然没有创造一个成功的商业模型。接下来我们讨论一下将于今秋于百老汇新上映的音乐剧“The Last Ship”,这个剧目被Sting给予很高分的评价。在当前市场讨论结构性 vs. 周期性失业的时候, 制作人 Jeffrey Seller提供了Sting于英国的造船业面临崩溃和社区每况日下的情况下的情感是如何使他受到启发而使这个剧目诞生的内幕。如果那个城市的领导者能有远见着实的先见或城市治理方法,这个社区的转换会好些吗? 在思考关键的公司治理的问题时,我们把话题从“The Last Ship”转到“The Last Seat.net”当Cornerstone月刊的 “Featured Domain”讨论公司董事会的构成和发展。 对于那些立志使公司获得最优的监管和延续,我们考虑使一个伟大的董事会达到具有综合能力所需考虑的问题和特点 —- 一个真正能通过建设性的讨论提供指导的问题和特点。我们强调了董事会结构的数据,以及连续缺乏多元化会阻碍优秀治理的最大潜力. 从董事会的延续性和演化的讨论, 我们来到“Embracing the New Market Opportunity: LGBT+A”。在这篇报告中, Joanne Jacobson以及其它传媒业执行者讨论了极具影响力的消费者行动“从拒绝接受到采取行动”来作为站在公司背后的直接联盟而参与进来。 提及这个月的参与话题, 我们也来考虑一下新金融和爵士乐的比拟。 这篇可持续的社论,“Jazz Inspired Finance”总结了音乐和金融的相似之处,音乐是需要合作的,全球范围内使人受到鼓舞,并且是包罗万象, 可持续金融的原则是最终取得最大可能性的全球繁荣。这篇文章试图“使金融鼓翼而飞”. 提及到传媒,Cornerstone全球市场策略师考虑了传媒行业的估值方法, 传媒行业包括占有20%的MSCI的必需消费指数。鉴于我们看多这个行业,我们来进一步深入讨论传媒的构成。 随着内容的性质和多种传播机制的演化, Michael突出了估值需要在控制无形知识产权权利以及对最重要而实质的环境,社会,和公司治理等因素加以分析的前提下进行。在这个月里我们也包括了一篇Janet Pegg关于估值和财务的报告,通过“The Spin on Spin-Offs”这篇报告,Janet对当前传媒业最近交易的复杂性给出了清晰地解释。 鉴于“可持续发展”和“公司治理”在体育,传媒和娱乐行业尤其是取决定性作用,我们把注意力转到美国橄榄球,Cornerstone公司治理,从事,和研究负责人John Wilson在公司治理和美国橄榄球方面提供了见解。底线是不可能找到完美的能够平衡股权持有人和其他相关利益者的解决办法。 可以这样说,美国橄榄球看上去远远不能够保护其长期健康,因为它是一个依赖于人才的行业。接下来我们讨论一下分析师Mike Shavel的关于“有责任的游戏行业的准则”以及游戏公司在何种程度上来实施减少风险的政策,提倡潜在的技术革新,以及与在线游戏公司的竞争挣扎。在另一篇文章中,我们提供了关于“花样运动”的社会价值,正如它的创造者Matt Fortnow所阐述的,Matt对于商业和社会的含义进行了讨论。 当世界杯把对全球市场的注意力转向巴西的时候, Tahl… Read more »

首席执行官关于可持续金融和银行业的致辞 – The Cornerstone JSFB CEO’s Letter in Mandarin, June 2014

The June edition of the Cornerstone Journal of Sustainable Finance & Banking puts the focus on “Sports, Media and Entertainment,” understanding the broad influences they have on cultures, businesses and nations. Read the CEO’s Letter on Sustainable Finance & Banking in Mandarin here. 首席执行官关于可持续金融和银行业的致辞

Fantasy Sports – Business Versus Social Implications

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  Fantasy sports is big business. A fanatic fan base and highly desirable demographic has turned it into a $3 billion industry in just the U.S. and Canada, growing over 12% annually.  The fantasy sports phenomenon caught fire with the advent… Read more »

Sports Analytics for the Masses

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  Professional tennis players now sparring on Centre Court at Wimbledon have likely scrutinized every part of their game – from stance, to serving strength to baseline maneuvers — with a team of coaches at the ready. But what of the… Read more »

Governance & the NFL

American FLag Football Helmet on Grass with Dollar Symbol Clouds

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION. In sports, fixing the game is the ultimate sin, and all sports leagues work hard to prevent contests from being decided by anything other than the skill and the effort of the players and coaches. No sport survives for long if it does not make the delight of its fans its central purpose…

Feeding Fans Sustainably

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  When we think about sustainability in the context of the fan experience we take a holistic view of our opportunity and responsibility – from the restaurants supporting the sports events to the ingredients provided by our supply chain.  In doing… Read more »

The Power of Sports: From the Field to the Business World

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  As you bring your daughter to her sports clinics this weekend, to Tae Kwon Do or swimming or soccer, or wherever else her passion lies, celebrate. She’s not just playing. She’s not just exercising. She’s actually building critical life skills, such… Read more »

The Spin on Spin-Offs

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  Time Warner Inc. completed the spin-off of Time Inc. earlier this month. Likewise, CBS Corp. announced that it would split off its remaining shares in CBS Outdoor Americas Inc. It’s clear that tax-free spin-offs continue to be popular transactions for… Read more »

A Focus on India

India Flag And Money

The outlook for Indian equities likely remains supportive. GDP is a key driver of corporate profits in India and, as noted, GDP estimates have started to trend up. Moreover, given current low capacity utilization rates and margins near historic lows, a modest improvement in profit margins could result in a meaningful boost to earnings. In terms of valuation, the Indian market is currently trading at around 15x one year forward earnings, which is in line with historical averages.

More Than a Game: Football Fans & Nationalism

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  It is conclusively clear from this discussion that football is an example of the interaction between the local and the global in regards to both to the globalization of the sport and to the impact that the game’s globalizing has… Read more »

The Role of Media in India’s Election Outcome

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  The failings of India’s media during this election are symptoms of deeper ailments.  Most media companies are family owned.  Their decisions are driven more by personal and historical animosities, or agendas, than by long-term business strategies.  Those few that are… Read more »

Let’s Dance: The Virtuous Cycle of Creativity

Past And Present Of Media

Mom and Dad would be proud. It only took 24 years from when I received my Bachelor of Music degree to locate the convergence between fine arts and sustainable finance. Sustainable practices in entertainment and media are perhaps not as obviously critical as they might be in extractive industries, food services, or manufacturing. What is… Read more »

Business of CSR and Sustainability in India

ABSTRACT FROM THE CORNERSTONE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE JUNE 2014 EDITION.  Four years ago, a good friend and a very senior government colleague here in India, Pravir Kumar, asked me to weigh the prospects of getting into the area of CSR. Given that his thoughts and ideas were way ahead of… Read more »

Par for the Course?

Playing golf, ball on tee and golf club about to shot. Vintage,

The modern game of golf has come a long way from its humble beginnings in 15th-century Scotland, and its fans are some of the most ardent of any sport. Ironically, it is golf’s deep-rooted traditions that have left it struggling to adapt to structural shifts, and the industry is now facing declining interest in many… Read more »

A Perspective on GoDaddy’s IPO

This commentary is co-authored by John Wilson and Janet Pegg. Some recent comments in the media raise concerns about how GoDaddy Inc.’s upcoming initial public offering will be impacted by the original shareholder’s retention of future tax benefits from GoDaddy’s prior tax losses.  However, care should be taken before drawing conclusions about the company’s tax… Read more »

The Cornerstone Climate Change Conference Call Recap

How should investors respond to the challenges of climate change?  On our June 12th conference call, Cornerstone Capital CEO Erika Karp and John Wilson, Head of Corporate Governance, Engagement and Research, provided investors and corporate constituents with our perspective on this pivotal issue. The Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC)… Read more »

Regional Strategy Update

  In the April edition of The Cornerstone Journal of Sustainable Finance & Banking we introduced the Cornerstone Capital Regional Strategy Model in which we ranked seven of the world’s regions/major economies. At the time, we excluded Australia and Canada but, following client feedback, we are now incorporating those two countries in our model –… Read more »

A Statement on Climate Change

As global markets digest the implications of the latest move from the Obama Administration, we argue that investors must adapt to the evolving reality of climate change with transparency, engagement and pragmatism.  In this note, John Wilson, Cornerstone’s Head of Corporate Governance, Engagement & Research, articulates our firm’s position on this pivotal issue. Introduction Although… Read more »