Posts Categorized: Basic Material & Industrials

Extractive Company Values: Environmental & Social Issues as Indicators of Strategy Execution Potential

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With a market cap of over US$6 trillion, the extractive sector encompasses over 5,000 companies. It provides raw materials for everything from energy creation to high-tech manufacturing to electronics. Even as the world starts to transition from greenhouse gas emitting commodities like oil and coal, natural resource extraction will remain essential. Smartphones and electric vehicles, for instance, require metals sourced from extractive operations around the world. Yet natural resource extraction is, by its very nature, environmentally destructive and socially disruptive — and managing the risks inherent in mining is of prime concern to extractive companies and the host countries in which they operate. Extractive companies’ success will be in part determined by their ability to position themselves for this future.

Evolving Lifecycles in an ESG Materiality Matrix

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For most sectors, the likelihood of adverse ESG events and their potential financial impacts evolve through a lifecycle. ESG lifecycles determine the time it takes for a sustainability issue to become relevant to a sector as well as the magnitude of the financial impact. We believe the ability to anticipate ESG lifecycles can enhance the investment decision-making process.

Regional and Sector Strategy: Monthly Update

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Our earnings momentum metric has been refined. In addition, we have also introduced a methodology for weighting ESG factors in sectors and regions. These modifications have resulted in an unusually large number of changes in recommendations.

Global Earnings Synthesis: On Track for Modest Gains in 2016

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Building on the recent analysis in our Regional and Sector Strategy: Monthly Update, we continue to embrace an outlook for just a single-digit increase in profits in 2016, which is in contrast to consensus estimates that imply a 21% gain in earnings.

Regional and Sector Strategy: Monthly Update

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We remain Overweight Information Technology (largest weighting in Overweight North America region) and Consumer Discretionary (largest weighting in Japan, our other Overweight). We continue to avoid regions with heavy exposure to commodities, most notably Latin America (Underweight), South Africa and Russia (both ranked Neutral).

Global Earnings Synthesis

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As a complement to our Regional and Sector Strategy: Monthly Update we introduce a new publication that will examine in detail the outlook for global earnings on a regular basis.

Regional and Sector Strategy: Monthly Update

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We are becoming a little more cyclical once again. We are now upgrading the Industrials sector to Neutral from Underweight, largely reflecting improved valuation. We remain Neutral on the two sectors that are widely considered the most defensive: Consumer Staples and Health Care.

A Shifting ESG Materiality Matrix: What Has Mattered, What May Matter

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As we continue our research on sustainability factors that play a role in market outcomes, we embrace a more nuanced view. ESG factors that impact different sectors are not static, and are determined by a wide range of lifecycles.

Regional and Sector Strategy: Monthly Update

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We are Underweight Energy, Materials, and Industrials. Our only Overweight is in Financials. We upgrade China and Russia to Neutral from Underweight.

Learning from History: How do Historical and Forecast Electricity Prices Connect?

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We believe that the rising electricity prices forecast by the US Energy Information Agency (EIA) in their Annual Energy Outlook 2015 do not account for the dampening effect of rapidly declining renewable energy costs and low financing costs. In particular, rooftop solar should act as a cap on the price that utilities will be able to charge retail customers while falling wholesale solar prices, set at a fixed price for up to 20 years, could reduce wholesale electricity prices for the long term.

Scenario: What if electricity prices fell?

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US electricity prices have steadily increased in nominal terms over the last five decades. However, using history as a guide, we observe two distinct periods of falling prices driven by technology and government subsidies. We believe that a confluence of factors could once again result in structurally lower prices – with potential impact to power market participants.

Regional and Sector Strategy: May Update

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We are now underweight the most cyclically sensitive sectors: Industrials, Materials, Energy. While we upgrade the CEEMEA region to Neutral from Underweight — in large part because of an improved earnings outlook — this likely reflects a modest rebound in oil prices, which remain 40% below year-ago levels.

The Drought in California: The New Normal? What Investors Need to Know…

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California’s drought poses a resource crisis on a scale that has not been seen in the US for several decades. Experts forecast the drought, now in its third year, will continue at least through 2016, and the lack of rain, combined with a record low water table beneath the Central Valley, may be a “new… Read more »

Updating the Global Equity Strategy Investment Clock

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An Increasingly Cautious Near-Term Equity Outlook — Plotting our sector and regional equity recommendations on the face of an “investment clock” suggests an increasingly cautious near-term outlook for global equities. A Tilt Away from Cyclical Sectors and Regions — Last month, we tilted further from cyclical sectors and regions. As for sectors, we are underweight Energy and Materials, neutral Industrials. In terms of regions, we are underweight CEEMEA and Latin America.

Regional and Sector Strategy: April Update

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We continue to have a defensive tilt in our regional recommendations, and are Underweight the commodity-rich regions of Central and Eastern Europe, Middle East and Africa (CEEMEA) and Latin America …

Japan’s New Corporate Codes – Studying the Impact on Valuations

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Corporate governance represents the relationship among various corporate stakeholders that determines the strategic direction of a company. Practically, corporate governance adjudicates the balance among key stakeholder interests within the firm. Japan is unveiling a new corporate governance code for companies …

The Economics of Automation: Quick Serve Restaurant Industry

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Increasing cost pressure. Labor and food represent a significant portion of restaurants’ cost structure. While these inputs have been relatively predictable in the past, the twin threats of rising wages and increasingly volatile food prices suggest a more challenging environment ahead. It’s not clear that cost inflation can be consistently offset by raising menu prices, so companies are considering new strategies to protect margins . . .

Regional and Sector Strategy: March Update

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Our regional strategy is unchanged. We continue to have a defensive tilt in our regional recommendations, and are Underweight the commodity-rich regions of CEEMEA and Latin America. Japan continues to be the top-ranked country. Over the past twelve months, share buybacks in Japan have been the largest of any country / region, the first time that country has been the global buyback leader since we launched the regional model in April 2014. We highlight changes in the Energy suggesting, perhaps, that stock prices in the sector have not fallen as fast as earnings estimates . . .

Towards Decent Jobs and Sustainable Business: the Long Road Ahead for Walmart

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Walmart surprised the markets last week when it announced, along with its year-end results, a salary increase for 500,000 of its employees, raising company minimum wages to $9 per hour in April 2015 (bringing the average wage to $13) and $10 per hour beginning February 2016. The retail giant’s financial results were otherwise unremarkable, with… Read more »

Schneider Electric and the Power of Energy Efficiency

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Schneider Electric (SU) published its annual results yesterday, posting a profit increase of 2.8% and revenue growth of 6.6%. With a 170-year history, starting in metallurgy, Schneider Electric is now betting on one core element of its strategy, across all its business lines: energy efficiency. Last November, the International Energy Agency reminded markets that energy… Read more »

Regional and Sector Strategy: February Update

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Our regional strategy is unchanged, even with a heightened focus on monetary policies and exchange rates in the past month driven, in part, by fears of deflation. We continue to have a defensive tilt in our regional recommendations, and are Underweight the commodity-rich regions of CEEMEA and Latin America. Our sector strategy is also unchanged and remains “less cyclical, more defensive.” We maintain our relatively defensive posture given pockets of economic weakness globally. We are Overweight Health Care in North America, the U.K. and Europe ex U.K. We are Underweight or Neutral Energy in the majority of regions….

Introducing the Global Equity Strategy Investment Clock

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Developing a multi-class asset allocation model — that also incorporates Environmental, Social and Governance (ESG) factors — is a lofty undertaking. In this report, we take a first step by introducing our global equity strategy “investment clock”, which helps flesh out the equity outlook implied by our sector and regional recommendations….

Redefining Energy Utilities: The E.ON Revolution

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On December 1st, the German energy utility company E.ON announced it would spin off its conventional energy generation, upstream and trading businesses, and focus on renewable energy, networks and customer solutions. E.ON’s current shareholders will receive shares in this new company, in addition to their holdings in the parent company. E.ON will keep a minority… Read more »

ESG Essentials – A Guide for Investors

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There is increasing recognition globally that environmental, social and governance (ESG) factors are relevant and material for investment decisions. If you are involved in the world of finance, the words “sustainability” or “ESG” have either crossed your desk or are about to. For investors that are new to the topic, this report will serve as a primer that provides a basis for additional avenues of inquiry. For those that are already familiar with the subject, this report will act as a supplement and may offer new or different perspectives on the most critical issues.

A Virtuous Circle of Corporate Excellence Drives Sustainable Value

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Praxair, Inc. (NYSE: PX) is a Fortune 250, $12 billion global industrial gas company headquartered in Danbury, CT. It is the largest industrial gas company in the Americas and operates in more than 50 countries. Praxair consistently leads the industry in profitability and return on capital through a culture of operational excellence, capital discipline and… Read more »

Navigating the Recycling Industry

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My journey to the recycling world, is a circuitous one primarily driven by environmental and social motives. A child of immigrants from India and the UK, and one of six children, I never sought easy answers. We came from England with just the clothes on our backs. My parents had big dreams of not only… Read more »

SustainableShipping.mobi

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Nils Anderson, the CEO of AP Moller Maersk, spoke at this month’s BSR Conference in New York City and articulated his company’s aspiration to be “Taking the lead in a world of change.”  This company represents the ultimate player in global trade. And, if one subscribes to the economic theory of comparative advantage, then the… Read more »

Sustainable Agriculture: What Drives Investor Decisions?

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Sustainable agriculture ensures that production keeps up with both demographic changes and resource scarcity while providing economic development and investment portfolio growth. And agricultural production is big business, encompassing land, equipment, crop inputs (chemicals and seeds), expert production (farmers maximizing crop yields), value-added processing, and sales and distribution.  Agricultural sustainability depends on a number of… Read more »

Water & Sanitation: Everybody Needs Them, Especially During a Crisis

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“Readers, I selected this story–written by a colleague here at Oxfam–when I learned that the focus of October’s issue of The Journal of Sustainable Finance and Banking would be on food and nutrition. Although Oxfam has worked on food and hunger issues from our inception, far too few people recognize the significance that clean water… Read more »

7,000 Chemicals and Highly Sustainable

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Red wine, it is believed, has many virtues, from antioxidants to its high levels of resveratrol to promoting weight-loss. However, the virtues of wine can quickly be undone by harmful chemicals, pesticides and fungicides that are found in many varietals today. Unless a wine is certified organic and biodynamic, the consumer can be exposed unknowingly… Read more »

Eating Ourselves Thirsty

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As the world’s consumers increasingly eat their way up a middle class ladder replete with growing portions of meat, dairy, cooking oils and fruits and vegetables, farmers find their jobs growing harder by the day. Facing ever-hotter temperatures, record-busting cycles of drought and flood and finite amounts of irrigation water, farmers have the unenviable task… Read more »

The Search for a Sustainable Cuisine

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For several years, I’ve tried — with an astounding lack of success — to persuade the students studying at The Culinary Institute of America, that the houses of PhD biologists are not haunted. They contain no ghosts. But even if they did, they’d be benevolent ones like “Casper the Friendly Ghost,” or the “Ghost of… Read more »

The Future of Urban Agriculture in U.S. Cities

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Co-authored by Viki Radden and Doug Lawrence   Today, the U.S. population is over 316 million.   In less than 40 years, the U.S. Census Bureau projects we’ll reach a national population of 450 million, a 42% increase.   Where is this population going to live?  The answer to that question appears relatively clear; the U.S. Census Bureau… Read more »

The Future of Food and Sustainability…A Call for Action

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The current U.S. agriculture model is not sustainable.  It is losing more than one acre of farmland a minute to development and causes the erosion of four billion tons of topsoil per year. It accounts for 82% of fresh water use while our major water sources such as the Ogallala Aquifer, Lake Mead and the… Read more »

Market Summary: Overview

In a year of surprisingly muted market volatility, this month we saw risk assets tumble as investor concerns reached a decisive tipping point. Anxiety over a less accommodative Fed, the pace and sustainability of global economic growth, continued conflict in Ukraine, escalating violence in the Middle East, and even the Ebola crisis have investors fleeing… Read more »

SustainableGames.com

People Planning in a Conference and Innovation Concept

In an effort to ignite and support the efforts of the next generation of business leaders, and a form of capitalism that is based upon greater collaboration and transparency, we launch this initiative among the world’s students who will be essential drivers of sustainable innovation…This is a call to action for social entrepreneurship: “Sustainable Games:… Read more »

Endocrine Disruptor Chemicals — a Serious Health Risk for All, a Potential Opportunity for Business

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In our daily lives we are constantly exposed to a large number of chemicals, affecting us and our health – without us even realising it.  These chemicals stem from a broad-range of products we use every day; plastic food containers, shower curtains, sunscreens, pesticides, furniture, toys, cosmetics and even the cash receipts or lottery tickets… Read more »

Paths to a Fossil-Free Future Create Disruptive Business Opportunities

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Fossil-free by 2075. That is the answer the International Energy Agency (IEA) found when it explored technology transition paths for the global energy sector consistent with stabilizing climate change. As an intergovernmental formation of industrialized nations, the IEA’s aim was the same target as the one repeatedly sought by in international negotiations – 2 degrees Celsius above pre-industrial global average temperatures, a level intended to avoid the most catastrophic effects of climate change. While investment analysts are often bound to performance horizons of just a few quarters, the IEA view to 2075 has implications for capital allocations today….

Balancing Nature and Energy

This is an abstract from the September edition of The Cornerstone JSFB. Subscribers can read the full article here. Learn more about the JSFB here.   When discussions about the imperative to lower greenhouse gases turn to the subject of hydraulic fracturing, or fracking, tensions get white hot. Opponents cite the horrors of gas and… Read more »

The 2014 El Niño: Disrupting the Climate for Business?

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Climate forecasters breathed a collective sigh of relief earlier this month as predictions of a “mega El Niño” on par with severe incidents that took place in 1997-98 were downgraded. Scientists now believe a more modest event will develop later this year and run through the winter of 2014/2015. Nonetheless, the revised “60-65% chance” forecast… Read more »

Endocrine Disruptor Chemicals — a Serious Health Risk for All, a Potential Opportunity for Business

This is an abstract from the September edition of The Cornerstone JSFB. Subscribers can read the full article here. In our daily lives we are constantly exposed to a large number of chemicals, affecting us and our health – without us even realising it.  These chemicals stem from a broad-range of products we use every… Read more »

Risk Mitigation — the Basis for Chemical Safety

This is an abstract from The Cornerstone JSFB’s September edition. Subscribers can read the full article here. Chemical safety, especially when it comes to our everyday consumer products, is a topic of increasing relevance for the public. Almost weekly, news about food being contaminated, poisonous toys due to use of lead paints or unhealthy indoor… Read more »

The Cornerstone Capital Strategy Update: Less Cyclical, More Defensive

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We have updated the inputs to the Cornerstone Capital Sector Strategy Model in which we rank the ten GICs in the MSCI All Country World Index (ACWI). Figure 1 summarizes the most recent rankings. Figure 1:  Cornerstone Capital Global Markets Equity Strategy Model Sector Overview Relative to the previous rankings (published in the June edition… Read more »

Cornerstone Summary of “Earnings Guidance A White Paper from KKS Advisors & the Generation Foundation”

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The fact of the matter is that capital markets have moved away from a long-term mindset and more towards a focus on short-term results. This trend has been well observed by market participants and academics alike, yet the question as to what will serve as a catalyst to reverse the trend remains. To this end, it’s worth highlighting a recently released white paper by The Generation Foundation and KKS Advisors focusing on the impact of regular Earnings Guidance. Thorough examination of the topic leads to the following conclusions….

Confirmation Bias in the Investment Process

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The ancient Greek historian, Thucydides, wrote, “It is a habit of mankind . . . to use sovereign reason to thrust aside what they do not fancy.” The phenomenon to which he speaks manifests itself in all walks of life, from politics to religion and investing. Today, this concept is termed “confirmation bias” and refers to the tendency of people to favor information that confirms their beliefs or hypotheses….

Open Hiring: A Culture of Training and Learning

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Greyston celebrated its 32nd Anniversary this year and we are extremely proud of our heritage as a pioneering social enterprise. Over these past thirty-two years the concepts of social entrepreneurship, conscious capitalism and environmental sustainability have become common terminology in many business and political circles. What has not changed is the inability for individuals with… Read more »

Principles of Responsible Gaming

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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…

Introducing Cornerstone Capital Global Sector Strategy

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In this note, we introduce the Cornerstone Capital Global Sector Strategy Model.  The model ranks the 10 GICS in the MSCI All Country World Index.  As discussed in detail below, the model employs a quantitative multi-factor methodology to generate sector recommendations based on proprietary measures of valuation and earnings.  The Cornerstone Capital model also takes… Read more »

The Cornerstone Capital Regional Strategy Update

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION In the April edition of The Cornerstone Journal of Sustainable Finance & Banking we introduced the Cornerstone Capital Regional Strategy Model. This month there is no change in our regional weightings. We provide a quick update by region. Michael Geraghty is the… Read more »

“I Bought the Farm!”

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION Whether it was it for the NYS Department of Environmental Conservation or the Open Space Institute, I had been buying and selling land to preserve it in perpetuity for historic preservation, habitat protection and recreational use. The work was non-adversarial, amply funded… Read more »

Introducing Cornerstone Capital Global Sector Strategy

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION We introduce the Cornerstone Capital Global Sector Strategy Model which ranks the 10 GICS in the MSCI All Country World Index. The model employs a quantitative multi-factor methodology to generate sector recommendations based on proprietary measures of valuation and earnings and incorporates… Read more »

Introducing Cornerstone Capital Global Markets Regional Equity Strategy Model

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In this note, we introduce the Cornerstone Capital Global Markets Regional Equity Strategy Model.  As discussed in detail below, the model employs a quantitative multi-factor methodology to generate regional recommendations based on proprietary measures of valuation and earnings.  The Cornerstone Capital model also takes into account corporate governance metrics by region.  We will be updating… Read more »

Unleashing Impact Capital into Public Infrastructure and Building Projects

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. Our national economy is in a world of hurt when it comes to its very foundation: the public infrastructure and buildings that enable and support economic activity.  Bridges, highways, transit, energy, and environmental infrastructure as well as social infrastructure including healthcare, education… Read more »

Building Sustainable Cities with New Design Processes and Open Data

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. New data and technology advancements in the infrastructure design industry have the potential to revolutionize how finance and banking professionals screen opportunities for impact investments. The design industry is rapidly moving from the practice of drawing lines and circles to an intelligent,… Read more »

Filling the Infrastructure Data Gap in Impact Investing

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. The OECD estimates USD 53 trillion in investment or the equivalent of an annual 2.5% of global GDP by the year 2030, to meet demand for infrastructure investment by 2030. Those numbers are so large and intimidating that most people are tempted… Read more »

CBA-BIM Using Established Tools to Achieve Standard for Infrastructure Project Valuation and Risk Assessment

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. Building Information Modelling (BIM) is changing the planning, design, building, and operation of infrastructure. When Cost Benefit Analysis (CBA) is added to BIM investors get both transparency of value and understanding of risks in complex infrastructure projects. CBA-BIM has the potential to… Read more »

New Tools, New Tricks: How Emerging Applications Are Becoming Game-Changers for Impact Investors and Infrastructure Development

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. The creation of standardized economic tools that can be used in the context of infrastructure exchanges may enable a new era of impact investing. Investors can use new standardized metrics to shape the definitions of new asset classes, including green bonds and… Read more »

Maersk: Sustainability as a Driver for Growth

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. It is our experience that sustainability adds value if it is tied closely into business and is allowed to help the company take a longer term perspective on material matters. At its core, it adds value through better risk management whether it… Read more »

Trinity River Vision Authority Applies Sustainability Rating and Business Case Analysis to Set Stormwater Management Principles

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. The financial benefits coupled with the benefits of maintaining the water quality of the lake and canals planned for Panther Island makes a clear case for expanding the use of green infrastructure in North Texas that will benefit the development community and… Read more »

Infrastructure Imperatives Drive Regional Competitiveness

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. Today, our urban areas face enormous threats and costs including those associated with the quality, integration and performance of their civil infrastructure systems. Over time, as comprehensive business cases become more common, users will realize additional benefits as projects are regionally bundled… Read more »

WCX Finalizes Project Principles and Standards

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. On January 2nd, the West Coast Infrastructure Exchange (WCX) released the final version of “Infrastructure Project Certification –Principles and Framework” which was developed by the WCX Business Standards Committee. The principles and project standards are the first-ever attempt by multiple US states… Read more »

Transportation Facilities Focus on Sustainability at Billion Dollar Scale

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. When we commute and travel, do we think about the long-term sustainability of the facilities we use? Does it matter that these buildings are efficient and provide healthy environments? Up until now, we have considered multi-modal transit facilities as positive infrastructure since… Read more »

San Diego Airport Named First LEED Platinum Certified Commercial Airport Terminal

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. Abridged Article based upon SAN Press release courtesy of Jim Grant HNTB Corporation San Diego International Airport has been awarded Leadership in Energy and Environmental Design Platinum certification for The Green Build terminal expansion from the U.S. Green Building Council. LEED certification… Read more »

#TheBigShift – Systems Innovation: Changing Systems, Changing the Future

A recent event in New York City, organized by the Guardian and Forum for the Future, drew attention to a major challenge on the road to a sustainable economy: system innovation, or how to create a large-scale system change to make a difference1. Sustainable and social entrepreneurs, activists and business representatives gathered in New York for half a day of discussion and brainstorming, including the United Nations’ Global Compact, Ecovative, TheRules.org, and others….

BMW Urban Mobility: Re-creating the Status Quo through Sustainable Design

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The ability to independently travel from location to location based on nothing more than a simple desire to move about freely is a powerful and historical concept that breeds individuality, builds personal character, and spurs innovation through the free exchange of ideas and cultures. Personal mobility has long been quintessential in the development of the United States, especially when considering the early 19th and 20th centuries where transportation slowly evolved from the stage coach, to railroads, to streetcars and subway systems….

The “Chinese Dream” Chinese Citizens Dream About Health & Environment Improvement More Than About Their Country Being a Superpower

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. The “Chinese Dream” has become the most discussed topic today in China. The people of China have their own dreams and observe cautiously all the hype around this slogan, waiting for good reasons to believe in what they are promised. Thirty years… Read more »

Principles for Responsible Investment: Focus on Farmland

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. In April 2010, Secretary-General of the UN Conference on Trade and Development (UNCTAD) Supachai Panitchpakdi said: “There is an urgent need to invest more in agriculture both to ensure food security and as the basis for long-term economic development.” To address these… Read more »

Preserving the Rainforest: Sustainable Solutions from the Private Sector

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In order to create a virtuous cycle where forests are essential to sustainable economic growth both for local communities and markets, private investors need to be both catalysts for existing best practices and sources of new forms of sustainable investing initiatives, aiming to preserve and restore the world’s native forests. Transparency over existing practices is a prerequisite for the much needed transition to a sustainable system that simultaneously promotes economic growth and sustainable forestry.

Accounting for Timber – Lack of Convergence Illustrates the Differences between Historical Cost & Fair Value Accounting

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. Over the past few years one of the dominant hot topics in investment analysis has been fair value accounting.  After the credit crisis, there was a call by some to require fair value accounting for financial instruments.  The issue of the appropriateness… Read more »

Fibrea: A Leader in Sustainability

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. Fibria began 2014 by celebrating great achievements. The company was recognized in the 2014 Sustainability Yearbook released by RobecoSAM, which is responsible for the Dow Jones Sustainability Index (DJSI). The company received the prestigious Gold Class Sustainability Award for its leadership in… Read more »

A Call to Action

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. Investors are becoming increasingly aware of supply chain issues in their companies, whether it is through conflict minerals, poor working conditions, deforestation or any number of other concerns, and are focusing on what company management is doing to recognise and address these… Read more »

Applying The Rainforest Standard™ to the World’s Forests

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. The Rainforest Standard™ is the world’s first forest carbon credit standard to fully integrate requirements and protocols for carbon accounting, socio-cultural/socio-economic impacts, and biodiversity outcomes.  In 2009, Cargill S.A. and other sponsors invested in a unique collaboration among Columbia University’s Center for… Read more »

The Value of Community Relations

Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013 written by Andrew MacLeod, a Board member of Cornerstone Capital Inc. (New York), advisor to Gane Energy (Australia), Critical Resource (UK), former General Manager at Rio Tito and a former senior official of the United Nations and the International Committee for the Red… Read more »

“Main Street vs. Wall Street”, Now in Aluminum

Extract from the Cornerstone Journal of Sustainable Finance & Banking, October 2013, written by Pete Hickson, Founder of Global Materials Advisors Ltd. and an Advisory Director at TrafalgarCopley. Consumers claim that the practices of metal warehouses, owned in part by ‘Wall Street’ banks, have constrained supply and inflated costs. The LME warehouse operators counter claim… Read more »