To read the JSFB’s CEO Letter’s of Sustainable Finance & Banking in Mandarin click here. 首席执行官关于可持续金融和银行业的致辞
To read the JSFB’s CEO Letter’s of Sustainable Finance & Banking in Mandarin click here. 首席执行官关于可持续金融和银行业的致辞
Recent announcements by the Food and Drug Administration to regulate e-cigarettes are significant for the future of the $1.2 billion industry, not just because of the material impact of future regulations, but also because of the impact of the public debate and media discourse on the topic. The FDA’s focus is on banning sales to… Read more »
This month in the Cornerstone Journal of Sustainable Finance & Banking (JSFB), we take the opportunity to focus on the theme of “Infrastructure.” While global markets are in the thick of earnings reporting and proxy season, and investors absorb a raft of global manufacturing data showing growth differentials, we consider “Infrastructure” in its many manifestations…..
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 »
As we strive towards a system change, replacing linear business models with circular, impact-integrating strategies, network infrastructures are at the core of a major shift. From low-risk, low-return physical assets, they are being transformed into smart grids….
The “Biopharma” Industry The lines between the “pharmaceuticals” and “biotechnology” sectors are becoming increasingly blurred. With 35-40% of the earnings of global large cap pharmaceuticals companies coming from biologics, it is probably more accurate to refer to these companies as operating in the “biopharma” industry. Corporate governance has played a key role in the emergence… Read more »
Among the many extraordinarily articulate statements from Winston Churchill is one which has exceptional resonance in today’s global economy and to today’s investment imperatives. In the mid-1940’s after the Battle of Britain when the House of Commons was being rebuilt following the bombings, Churchill made the statement: “We shape our buildings; thereafter they shape us.”… Read more »
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, 我们注意到在面对复杂交错的信息流情况下，市场已经开始变得易变。在美联储逐渐缩减债券回购的情况下， 最近投资者已感觉到欧元区和中国有可能提供一些货币政策的支持。 还有，当我们进入一个虚拟的现实世界时， 地缘政治和政治经济的不确定性正如资本市场愿意给Candy Crush游戏制造商King Digital的发行股付出的价钱以及Facebook收购Oculus付出的价格一样具有不确定性。我们希望这些公司将是产品设计的大师。在这期的月刊里， 我们讨论的主题真的是设计。 在考虑商业模型和商业实践的设计上，这个月里我们从虚拟现实转到真正面对全球投资者的实际现实。这些现实包括美国的银行必须有充足的准备金以便能通过压力测试，处理象发生在加尔维斯顿海湾所必需付出的生态和商业上的支出，以及通用汽车将要采取的关键步骤来解决当前的关于汽车安全的危机。 谈到危机，我们介绍一篇Cornerstone Capital 全球市场策略团队Michael Geraghty 和Michael Shavel的报告。这篇题为“定义危机：加速可持续增长”发表在我们的“全球行业研究”章节的报告讨论了从历史吸取教训以及公司是否有空间和治理能力在危机后从新设计和定义他们未来的状态。在报告中，我们的团队简单快速过滤了几个行业的公司，例如Johnson&Johnson, Nike, Tyco, Neste Oil, Rio Tinto, Royal Bank of Canada 和 IBM。他们对公司关于危机的来源以及反映进行了提问。并且他们建议当公司试图使用历史教训和行业特有的环境，社会，和公司治理等因素来设计他们的商业模型时，他们的弹性和长期商业表现也会越好。 也在这个月的期刊里，我们也考虑了由自然：仿生学所激发的伟大设计。我们包括了一篇Cornerstone Capital 分析师 Michael Shavel讨论如何能够使用“自然的R&D部门来提高生产率”。Michael提醒我们蝴蝶的翅膀和海鸟的嘴能够激发我们从Qualcomm的移动显示技术到空中客车A350s的每件事情。进一步，Katherine Collins关于“投资的自然”的报告讨论了伟大的投资和对真正公司管理者的寻找要求我们把他们等同于大自然的弹力和再生系统：具有大自然的智慧。 并且，这也正是Hazel Henderson在她的文章中所作的，当她把前沿的机会介绍给我们时，强调 私有投资者是如何利用逐渐出现的资产类别。 这个真的是很酷。事实上，这个月在我们的“Featured Domain”章节我们讨论了能够把这些全部考虑到的投资者真的是很棒。 在设计投资过程和方法以分配资本时，我们讨论了从长期看将会对竞争回报和社会影响都有要求。我们认为那些能系统寻找并把环境，社会，和公司治理等因素集成到投资过程的投资者将是“ Arbiters of Cool”。在好的措施方面，当我们希望未来实现低碳移动时，Cornerstone的Juan Lois给我们提供了BMW “i”系列可持续产品预览。 在这月期刊其他强调的设计者有Jean Rogers, 可持续会计准则委员会(SAAB)执行董事和Matthew Reynolds，Indigenous Designs的总裁和共同创始人。当我们建设性的来到“Accelerating Impact”章节，Jean设计了一个通过财务纰漏标准来提高公司运营有效性的透明度。在“Open Source Excellence”的例子中，Matt已经通过The Indigenous… Read more »
This month in the Cornerstone Journal of Sustainable Finance & Banking (JSFB), in considering the design of business models and practices, we move from virtual reality to the actual reality facing global investors….
The introduction of e-cigarettes (e-cigs) has acutely disrupted the tobacco product/nicotine marketplace. As of 2013, Citi estimates that just under half of the 42 million smokers in the US have tried an e-cig. And, while e-cigs currently account for only 1% of overall US cigarette industry volumes, global e-cig sales have rapidly increased to $1… Read more »
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….
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….
EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. Investors should be aware that first quarter earnings could have a little extra “noise” in them this year, and may not be comparable to previous years. The problem results from Congress not extending the R&D tax credit again. The credit has a… Read more »
Oftentimes, the way a corporation responds to a crisis ultimately leads to a binary outcome: the company stumbles and fails to survive or, alternatively, it responds effectively and thrives. As the focus on sustainability continues to grow, it’s likely that corporate crises will increasingly involve ESG issues. While most crises are idiosyncratic in nature, in some instances there are commonalities, both in terms of the precipitating factors and the responses of the companies involved. It’s for this reason that analyzing successful responses to prior crises can be enlightening for managements and investors….
Mature economies have witnessed steadily declining productivity growth since the late ‘90s. Greater efficiencies in major emerging economies have been an offsetting factor, but they, too, are now seeing productivity growth decelerate. The challenge we’re now faced with is not only putting capital to work, but accelerating the flow of capital to innovative, sustainable businesses that in aggregate will help reverse this alarming productivity trend.
For better or worse, we live in a culture in which the coveted social label, “cool,” drives fickle fashion and retailing tastes, molds entertainment and media content, and sets the cultural lexicon. What’s cool generally equates to what’s relevant right now. Yet as the corporate sustainability and impact investing movement scales, a new class of… Read more »
This month in the Cornerstone Journal of Sustainable Finance & Banking (JSFB), we consider the extent to which the global markets have been able to absorb the cross-currents of macro, micro and structural factors with a good deal of resilience. In addition, we pay very special attention to “natural capital” this month by highlighting the value of the world’s forests and ways in which the capital markets can facilitate their protection….
Unbeknownst to many consumers, the supply chain that facilitates the delivery of those delectable heart-shaped chocolates is facing significant challenges. Should these challenges go unresolved, the future of chocolate may not be so sweet. The large majority of cocao is grown on small family farms that often use unsophisticated, labor-intensive farming practices. Poor yields are demonstrative of poor or inexistent educational systems and inadequate knowledge of modern farming techniques.
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.
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 »
Janet Yellen was sworn in as the Chair of the Board of Governors of the Federal Reserve on February 3rd and gave her first testimony before Congress the following week. As expected, the plan is to stick to the script. Yellen did not provide new insight into the Fed’s QE taper and she deemed “the… Read more »
This month in the Cornerstone Journal of Sustainable Finance & Banking (JSFB), as global markets move into earnings reporting season with trepidation about the ability of share prices to consolidate gains in 2014 and move ahead further, we focus on Data. We consider Big Data, the Principles for Responsible Data, Data for Environmental, Social and Governance (ESG) Analytics, and Data Overload.
Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Janet Pegg, Head of Accounting & Valuation at Cornerstone Capital Inc. and former Managing Director and Analyst of U.S. Accounting Research at UBS Investment Bank. Janet is an II-ranked Analyst. Subscribers can view the full article in the January edition. Although mandates… Read more »
Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Michael Shavel, CFA, a Research & Business Analyst at Cornerstone Capital Inc. and a former Research Analyst on AllianceBernstein’s Global Growth & Thematic team. Subscribers can view the full article in the January edition. While technology has evolved, there still remains the… Read more »
This month in the Cornerstone Journal of Sustainable Finance & Banking (JSFB) in considering aspirations to have an extraordinary societal and economic legacy, we turn our attention to Brazil and the “Social” in ESG with a series of notes highlighting that nation’s tremendous challenges and opportunities.
As last year’s Earth summit in Brazil, Rio+20, clearly showcased, many people believe indeed that a “green growth” economic model, integrated within the long term vision of sustainable development, is incompatible with the economic growth countries like Brazil strive to achieve in order to bring prosperity and progress to all. Is this antagonism relevant, or is there a way to reconcile these major objectives?
In recent times the world’s banking entities have been analyzing the finalization of the Volcker Rule portion of the Dodd-Frank Act. The rule, which includes the restriction of banks from engaging in proprietary trading of certain securities, derivatives and options, effectively bars these entities from behaving like hedge funds. One particular activity often associated with… Read more »
Carta da CEO sobre Finanças Sustentáveis e Banking Erika Karp Fundadora e CEO da Cornerstone Capital Inc. e ex Head de Pesquisa Setorial Global do banco de investimentos UBS Este mês no Cornerstone Journal of Sustainable Finance & Banking (JSFB), assistimos um mercado global mais suave com antecipação contínua da normalização das taxas de juros…. Read more »
This week marked the convening of the World Economic Forum’s annual Summit on the Global Agenda held in Abu Dhabi, UAE. It’s notable this year that the various Global Agenda Councils (GAC) will be moving more closely together to cross-fertilize ideas and initiatives. Throughout the venue we are reminded of the facts around risks to… Read more »
Why would anyone sport a Nike FuelBand rather than a stunningly beautiful precision built Swiss timepiece? The latter is an expression of elegance, professional achievement, and style. It can speak to the fortunes and success of the wearer….
Extract from the Cornerstone Journal of Sustainable Finance & Banking, November 2013, written by Erika Karp, Founder and CEO of Cornerstone Capital Inc. A huge lament is the lack of any opportunity for an honest and open discourse on the place derivatives play in our society. Why is it worth continuing to pursue such an… Read more »
Extract from the Cornerstone Journal of Sustainable Finance & Banking, November 2013, written by Janet Pegg, Head of Accounting & Valuation at Cornerstone Capital Inc. The FASB and the IASB have been working since before the financial crisis to improve accounting for financial instruments. Although the Boards have worked together, it is probable there could… Read more »
首席执行官关于可持续金融和银行业的致辞 过去一个月西方市场得益于特殊的货币刺激政策而持续走高，并且这种刺激在短期内没有放缓的迹象，在这个月Cornerstone 可持续金融和银行业的月刊里我们想借此机会来讨论一下东方市场。在众所期盼的中国共产党十八届三中全会后，全世界金融市场的参与者对于改革政策不能完全被市场接受而感到困惑，我们通过在本期中介绍两位中国问题专家的专题文章来共同思考最优的长期繁荣的途径。在我们新的“Regional Imperatives”章节，前法国外交部长Lionel Vairon 通过他最新出版的“中国的威胁”一书务实性地回答了中国崛起的秘密和现实。也是在这个月的期刊里，中国城市发展基金会的郑小平带来了他基于多年在大规模城市发展方面的经验为中国城市化进程中跨地域知识和资本流向等方面而提出的一个模式。 除了郑所指出的在持续推进城市化进程中的困难，我们也探讨了一个以扩大内需作为经济未来发展方向所面临的关键问题：即对于淡水的需求。水危机无疑是二十一世纪无可争议的危机，在这月期刊的“Enhanced Analytics”章节，我们重点讨论MSCI研究的一个新报告，报告的题目是“零和游戏：评估中国超大规模基础设施的水危机。”在这里，Linda Eling-Lee的团队探讨了基金经理可用来清晰审视他们投资决定中关于处理水危机的方法。 在我们注意到水是世界消费品公司重要的可持续发展关注点的同时，我们也借此机会在这个月的期刊里来讨论一下瑞银全球经济学家 Paul Donovan 和环境，社会，公司治理以及可持续发展策略师Julie Hudson 的评论。在这月期刊的“Sustainable Standout”章节，他们认为确实有办法来调和政治必然性，经济挑战，以及为全球生产低廉成本食品所付出的环境代价…..既集中解决这个系统中巨大的浪费。在他们新著的题为“食物政策和环境信贷危机—从汤到坚果”一书中，Paul和Julie继续帮助投资者回答应对消耗明天有限的资源来维持今天的消费水平所面临挑战的策略。 提及为这个饥饿的世界可持续性的提供食物所面临的挑战，这个月在我们“Open Source Excellence”章节，我们重点推荐一篇来自Bunge Environmental Markets 的Karla Canavan 的文章。Karla提出了一个引人注目的对于如何真正有机会通过建设性的使女性农民获得参与能力来解决食物和资源匮乏问题的案例。Karla项目的讨论强调带来繁荣的同时也带来资本的巨大可能性。 回到这个月我们“Global Sector Research”的工作，我们继续讨论中国崛起的话题，在这里我们介绍了技术行业策略师Nikos Theodosopoulos 对于美国科技公司对中国市场难以捉摸的探讨。Nikos 明确地列出了中国潜在的巨大技术市场机会，阻力，以及竞争的动态性。 这个月的“Sustainable Editorial”章节我们已经讨论了富有建设性地讨论金融衍生品价值（“衍生品的社会价值”）的必需性， 接下来我们想对全球银行业的健康性进行一下讨论。我们也提供了一篇来自于银行业策略师Diane Glossman 关于全球银行业运行的法规条款的文章。Diane 分享了她对金融业回报前景以及在当前监管环境下政府对该行业应付职责的理解。接下来我们想重点推介我们研究团队的估值和财务板块负责人Janet Pegg的报告，她的报告站在很高的角度讨论了银行是如何在他们的资产负载表上处理金融工具的。 在这月期刊里我们加入了一个新的“Accelerating Impact”章节。在这里 我们强调了当前由私营和公共机构所号召的对于那些愿意看到资本可以持续性运转的全体而采取实际行动的动员。这个月我们重点讨论杜克大学的David Robinson 的工作，David 和我们世界经济论坛全球融资和资本议程理事会的同事共同设计了一个对于使资本加速流入中小企业所面临的困难进行分析的问卷调查。我们诚恳的希望读者能够使用这个链接（http://sites.duke.edu/gacfinance）来参与这个问卷调查，从而使世界经济论坛可以更好地支持促进增长和繁荣的关键发动机。 也是在这期月刊里，在我们的“Corporate Governance Insights”章节， 我们非常高兴地分享John Wilson关于私有行业在公司可持续发展倡议中支持程度的讨论。在这篇连续报告中，前任TIAA-CREF公司治理总负责人探讨了如下问题： 公司以及股份所有者在可燃烧碳问题上参与性的改变，碳排放纰漏的透明性，以及我们想推进私有行业对于气候危险问题提出解决办法所需要的商业模型的改进。 来结束这个月的期刊，除了重点推出TheLastPanda.org作为我们“Featured Domain”，我也想谈一下Cornerstone的团队成员经常自问我们对于“公司可持续发展”的定义。我们以前已经指出过在可持续金融领域语言所带来的挑战 (请参见我们在福布斯发表的题为“可持续性能够持续吗？”一文)， 我们认为形成一个我们共同认可的统一定义的决心也许是徒劳的。并且企盼这个确定答案的想法也确实不可能加速改变的速度。所以对于Cornerstone Capital 来说，“公司可持续发展”的定义和公司所采用的战略以及商业技巧的紧密结合将是我们不遗余力对再生性以及从全方位考虑来发展经济的实质进展的追求。… Read more »
Extract from the Cornerstone Journal of Sustainable Finance & Banking, October 2013 written by Erika Karp, Founder & CEO of Cornerstone Capital Inc. and Derek Yach, Chairman of the Board of Cornerstone Capital Inc. and SVP of the Vitality Group, Discovery Holdings Ltd. The path to progress is not a straight line. And in fact,… Read more »
In the middle of the recent film “42” by Universal Pictures, the Brooklyn Dodgers Owner Branch Rickey played by Harrison Ford says to his partner at the opening game of the 1947 Major League Baseball (MLB) season: “Another opening day Harold…All future, no past.” This movie, an homage to legendary barrier-breaking baseball player Jackie Robinson,… Read more »
Extract from the Cornerstone Journal of Sustainable Finance & Banking, October 2013, written by Janet Pegg, Janet Pegg is currently the Head of Accounting & Valuation at Cornerstone Capital Inc. Rather than having companies provide point-in-time valuations of intangible assets, what investors would find more useful is increased disclosure of the assets, both tangible and… Read more »
We are pleased to present the inaugural edition of the Cornerstone Journal of Sustainable Finance & Banking (JSFB). Each month, the JSFB will strive to include important perspectives and insights from experts around the globe and across the functions of the financial markets. Cornerstone Journal of Sustainable Finance & Banking, October 2013
Extract from the Cornerstone Journal of Sustainable Finance & Banking, October 2013, written by Mike Shavel, Research & Business Analyst at Cornerstone Capital Inc. and Erika Karp, Founder and CEO at Cornerstone Capital Inc. It is no secret that the pace of this recovery has been frustratingly weak, especially in light of the current Fed policy…. Read more »
Extract from the Cornerstone Journal of Sustainable Finance & Banking, October 2013, written by Erika Karp, Founder and CEO of Cornerstone Capital Inc. While the Partners from the various firms articulated their respective strategies ranging from a focus “across the breadth of the corporate maturity stack” to “deep specialization on a sector basis”, one message… Read more »
Among the most well-known and well-loved sentiments of Mahatma Gandhi is that we should aspire to “be the change you want to see in the world.” For our part at Cornerstone Capital, there are changes we would like to see in the functioning of world’s capital markets. We would like to see a system where… Read more »