Posts Tagged: Article

Where Should “Human Capital” Fit in the Sustainability Agenda?

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION  If people are a firm’s “most important asset” – as CEOs repeatedly proclaim – why are they only reported as costs? What are the problems caused by this mismatch, and what would ameliorate them? In light of this, what actions can and… Read more »

Financial Impediments to Job Creation by Start-Ups and Small Firms

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION While older firms are important with regard to employment levels, it is new and young businesses (i.e., less than one year old) that are a key source of job growth. The U.S. economy is comprised of more than 6 million establishments with… 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, May 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, 我们看到全球市场在乌克兰局势压力缓解,强有力的美国经济增长,和中国政府有可能采取经济刺激的背景下逐渐好转。还有,市场的注意力很大程度上在关注欧盟委员会的领导团队,以及公司兼并购活动,如GE和Siemens各自对Alsthom电力业务并购的意图,以及Pfizer对AstraZeneca出价收购的失败,主要由于就业和知识产权仍然是谈判的核心。与此同时,关于收入不平等和公司治理的讨论越发激烈。 后者使我们对“遗产”开始讨论。一个重要的遗产是创业者最伟大的希望之一。创业者对资本报有最伟大的希望。 在这个月的期刊里,我们从多个角度讨论“创业精神”。我们先从具有特征的区域“BuildTheLadder.net”来进行讨论,在这里我们赞扬那些具有创造性,令人鼓舞的,无所畏惧的革新者和他们利用坚强的毅力来使想法和关系在成功的这个目标上达成共识。这其中的一些领导者会认同美国伟大诗人Maya Angelou,他在这个星期去世了。在他极不平凡的一生中,他总是鼓舞别人, Maya提到:“人们将会忘记你所说的,人们会忘记你所做的,但人们不会忘记你让他们有什么样的感觉。”当这些创业者在分享他们在自己的征程中所经历的感受时,我们赞扬他们经济上仅有的最好就业机会创造者的努力。 也是在这个月的期刊里,Cornerstone Captial的全球市场策略师Michael Geraghty进一步考察了“财务阻力对新兴公司和小公司创造就业机会的影响。”银行借贷和IPO市场提醒我们在政策制定上努力的重要性,例如JOBS法案。Janet Pegg,我们的估值和财会主管和我们进一步讨论“关于群众融资原则”的法律。伴随着SEC对“网络融资办法的不断改进,”我们注意到对伴有高透明度和可以理解的风险的公众融资作为一种可存在的融资和资本形成工具验证时的挑战和必需性。 这个月里我们也介绍一下Cornerstone Capital 的全球行业战略模型,在这里Michael Geraghty 对MSCI所有国家世界指数的10个GICS通过定性的多元素方法进行了排序。通过我们特有的估值和盈利(动量,再修正,和利润率)办法我们对行业进行推荐,并且同时考虑环境,社会,和公司治理等指标。 当我们期待我们的模型和过程进一步改进,我们最关键的ESG因素是通过行业来提供另一个视角来分析我们的资产配置。 目前,我们采取有点顺周期的立场来超配信息技术和可支配的消费品行业,而低配日常消费品和材料行业。 如Michael所提到的,对材料行业的配置程度应和地区策略保持一致,我们来到“Regional Imperatives”章节。在这个章节里,中国和巴西的两个创业例子所提供的见解应适用于全球。James Feldkamp在“明鉴:在中国对产品安全质量的测试”验证了需要真正是发明的母亲, 在巴西Camillo Sicherle在“退出:对风险投资的回顾”中讨论了为新企业融资的一个结构问题 — 一种想法会不时的削弱创业精神和资本的最高目的。   在“Open Source Excellence”章节,我们讨论世界上的三个领先公司为达到私有行业的优秀所共有的战略眼光。EBay的Lauren Moore讨论了“制造一个具有创业精神的生态系统来推动商业和社会价值。” Ben&Jerry’s的Jostein Solheim讨论了“拥护者,味道,和失败:从奶牛到冰淇淋筒的创新。”并且Novartis的Michael Fuerst和Integrity By Design的Dan Ostergaard强调了“当在营造廉政的文化时”,传统文化的融合也只能适应到这里。 并且,从开始最关键的事情我们应清晰知道并在检验和平衡中广泛意识到。 在这个月对创业精神进一步深度挖掘时,我们学到了多个的专家的见解。在“The Other Revolution”中,ShellyPorges展示了当“人才是普遍的,但机会不是”(如希拉里克林顿所阐述的)时,发挥人才潜力的巨大前景。David Lubin带来了他多年成功的经验和有价值的实用框架“创业者的工作:梦想制造者 – 梦想的摧毁者。”最后,Bob Lamb和Sadika Hameed建议我们在令人吃惊的地方应能吸取教训“那里安使投资者对进入怀有恐惧,创业者匆忙进入–但投资者通常不进入。” 投资者确实需要一个“提升的分析”世界,在这里我们引用Kara Hurst的工作,她认为可持续的投资者是:“研究很深,甚至寻找在产品层面上的衡量系统,”而Dr. Laurie Bassi问到“为什么“人力资本”能适用到可持续发展日程上?”在两种情况下,我们发现了一个更强大的对资本市场真正“食物链”的理解。最后,在这个月里,我们重点讨论在社会创业者中的“可持续的突出者”(3P Partners和FarmCo New York),对优秀的2014年Ceres年会的总结,对可持续眼镜制造商Warby Parker的评论,和一个来自于克林顿全球倡议组织的号召行动,即对那些愿意在全球资本市场加速影响的号召者给予明显的承诺。 真诚的致礼!… 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 »

Fans, Flavors and Failure: Innovation from Cow to Cone

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. How do you measure success in your company’s innovation strategy? Ben & Jerry’s strives to create engagement, stories that are willingly shared and essentially present products that fans don’t want to live without, summarized in two words: “Flavor excitement.” Success, then, can… Read more »

The Work of an Entrepreneur: Dream Maker — Dream Killer

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. Successfully managing the dissonance between unwavering commitment to your vision and the plan, and accurately reading the business signals that forewarn trouble is the entrepreneur’s perpetual challenge. False negatives and false positives are coming at you in a steady stream. Overreacting and… Read more »

Going Deep: Measurement Systems at the Product Level

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. In a world of big data, radical transparency for corporations and sustainability reporting on the rise, we should see a major shift in how businesses are tackling the most intractable environmental and social issues, as well as a rapid pace of progress… Read more »

Why Compliance Programs Work Like Pushing a Rope… How Leaders Can Impact Behaviour

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. Few ingredients are as important to building a successful organization as culture and most CEOs will argue that integrity is one of the cornerstones. But how do CEOs foster an entrepreneurial spirit and ambitious drive to perform without compromising ethical standards? In… Read more »

Reimagining Impact, Reimaging ROI

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. Co-authored by Bob Harrison, CEO and Bulbul Gupta, Head of Market-Based Approaches at the Clinton Global Initiative If we care about meeting the economic, social, and environmental demands of the 21st century, and growing consumer demand for responsible products, then we need to… 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 »

PIP’n Good

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION I’ve been on a mission for close to half my life — to figure out how best to steer individuals toward more socially mindful daily life choices. Because really, from the coffee you brew in the morning to the way you get… Read more »

Follow the Leader, Follow the Money…Sustainable Entrepreneurship in Banking – The Equator Principles

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION While images of Richard Branson or Elon Musk may come to mind upon hearing the term “social entrepreneur,” one does not require a huge public presence, a revolutionary new idea, or even billions of dollars to make a positive impact in meeting… Read more »

Where Angels Fear to Tread: Entrepreneurs Rush In, But Investors Don’t

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION Co-Authored by Robert D. Lamb and Sadika Hameed, Program on Crisis, Conflict and Cooperation at the Center for Strategic and International Studies A teenage girl sews some clothes and sells them to a vendor at the local market, grows her business, and eventually… Read more »

MingJian (消费明鉴), Testing for Safe Quality Products in China

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION The life of a consumer in China is akin to walking blind through a minefield; always fearful that your next purchase may contain hidden dangers. If you enter the words “product safety China” into Google, it will return more than 150 million… Read more »

Making the Case for Crowdfunding Rules

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. Start-up companies and investors eagerly await SEC final rules implementing the JOBS Act’s crowdfunding provisions. The SEC, however, must ensure investors are adequately protected. Achieving this goal will help validate crowdfunding as a viable investment and capital raising tool. Janet Pegg, CPA,… Read more »

“Exit Left:” A Reflection about VC Investing & Entrepreneurship

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION We have seen this story play out again and again. An entrepreneur hatches an idea, then looks for independent sources of funding to grow and scale the business. Blame the practice of independent venture capital (VC) firms dedicating a lot of focus… Read more »

The Other Revolution: The Global Entrepreneurship Revolution

ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION. The global entrepreneurship revolution is the key to driving economic prosperity in all our economies.  Today, it is estimated that there are nearly 400 million entrepreneurs starting and running businesses in the 54 economies surveyed by the Global Entrepreneurship Monitor.  And if… 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 »

Alibaba’s Hybrid Corporate Governance Structure

The upcoming IPO has attracted media and market attention as one of the first efforts by a Chinese company to list on a U.S. Exchange. Founded 15 years ago, Alibaba is a giant in China’s e-commerce business, with online shopping sites combining the power of an Amazon and eBay with the ubiquity of a PayPal…. Read more »

Smoke & Mirrors: The E-Cigarette Conference Call Highlights

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 »

JSFB April Edition: It’s All About Infrastructure

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…..

Introducing Cornerstone Capital Global Markets Regional Equity Strategy Model

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 »

Smart Grid Infrastructure – Status, Opportunities and Risks

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….

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 »

Increasing Access to Clean Water in Kenya: The Case for a Social Impact Bond

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. With limited public funding available for socially and environmentally responsible programs, a variety of initiatives have been developed to attract private capital into sustainable development. Although still in their infancy, social impact bonds (SIBs) offer a promising outlook for sustained public-private partnerships…. Read more »

Cornerstone Roundtable Discussion on the Global Pharmaceuticals Industry

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 »

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 »

Social Stock Exchanges: Democratizing Impact Investing

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION. While impact investing is still far from being an accessible opportunity for the general population, investor demand for greater liquidity and platforms such as Kiva and Kickstarter make it clear that the potential for involving retail investors in the sector is immense…. Read more »

ChurchillsVoice.com

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 »

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 »

The Cornerstone JSFB CEO’s Letter in Mandarin, March 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 »

E-Cigarettes. A Positive Disruption to the Market and Health or a Distraction?

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 »

#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

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….

Lack of R&D Tax Credit Will Complicate First Quarter Earnings

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 »

ESG & Credit Risk: New Study Demonstrates a Clear Link

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. Using data contributed by RepRisk, a Swiss-based ESG business intelligence provider, the authors examined the effect of CSR-related negative media attention on credit default swap spreads.  According to the study, companies that are criticized in the news for irresponsible ESG practices have… Read more »

Design to Serve the Changing Needs of the Reasonable Investor

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. The reasonable investor of 2014 is not the same as the reasonable investor of 1973. However, investors don’t have information to determine how companies are adapting to this new reality. In this situation, investors need comparable environmental, social, and governance (ESG) data… Read more »

Private Investors Exploring Emerging Asset Classes

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. Now that ESG (environment, social, governance) criteria are uncovering sound, long-term investments, private equity, family offices and pension funds are looking even farther afield for more such opportunities.  This new biomimicry asset class is the focus of Ethical Markets research in our… Read more »

Defining Crises: Catalyzing Sustainable Growth

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….

Supply Chain Ethics & Design: Sustainability Becomes Fashionable with Indigenous Fair Trace Tool™

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. Fashionistas can now see beyond clothing labels for the first time with the Fair Trace Tool™ developed by fair trade fashion company INDIGENOUS. This new tool, in the form of a QR code on hang tags, offers transparency throughout the garment’s supply… Read more »

Sustainable Fashion Design — Could Green be the New Black?

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. Although March may mean St. Patrick’s Day, that’s not the only reason some apparel companies are hoping you’ll be wearing more “green.”  While child labor and other social concerns have been on the radar screen for a while now, apparel/footwear companies are now… Read more »

Biomimicry: Turning to Nature’s R&D Department to Increase Productivity

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.

ArbitersofCool.net

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 »

The Nature of Investing

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION. In addition to the material bounty provided by our natural world, we also have access to great stores of wisdom that are embedded in natural organisms and natural systems. The principles of biomimicry, Life’s Principles, are not the newest theories: they are… Read more »

Cornerstone Journal of Sustainable Finance & Banking, February 2014

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….

Rausch Chocolate

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.

Nestlé: Leading Company in Climate Change Mitigation & Adaptation

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. Climate change is integrated into our company-wide risk management processes and in 2013 we further strengthened their commitment to lowering GHG emissions associated with the production and distribution of our products. Nestlé also commits to designing products that help consumers lower their… Read more »

Purecircle: Stevia Replacing Nutritive Sweeteners with PureCircle Stevia to Make a Positive Impact on Carbon

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. It is our vision to lead the global expansion of stevia as the next mass volume natural sweetener and encourage healthier diets through the supply of natural ingredients to the global food and beverage industry.  And it is our mission to scale… Read more »

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

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 »

Constructive Dialogue Bears Fruit

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. It has become more and more clear that shareholders can have tremendous leverage to influence corporate and industry practices globally, often in collaboration with coalitions of other shareholders and activist organizations. While one voice can make a difference, the collective voice of… 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 »

Sunshine in the Garden State: An Unlikely Leader in Solar Energy

EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE FEBRUARY 2014 EDITION. In the U.S., domestic developments have made New Jersey the third leading state in solar energy. This reflects a changing energy landscape in which sustainability has become a global policy consideration. The long-term trend is towards the adoption of renewable energy… Read more »

The Makings of a Market Correction?

2013 was a stellar year for stocks — the S&P 500 reached new highs and finished with a gain of 30%. Other developed markets performed well too — the MSCI All Country World Index (ACWI) rose 23% — but the MSCI Emerging Markets index fell 3%. As for 2014, we started the year with a dip begging the question of whether a material correction might be in store, as some observers have predicted….

Investment Storytelling Through Enhanced Analytics

Brad Monterio, Managing Director of Colcomgroup, provides an insightful discussion on XBRL in the January 2014 Cornerstone Journal of Sustainable Finance & Banking. XBRL was developed to solve the key challenges around reporting, disclosure and analysis.

Journal of Sustainable Finance & Banking, January 2014

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.

Disclosure Overload: Don’t Throw Investors Out with the Bathwater

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 »

Big Data in the Social Sector

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Sonal Shah, a Senior Fellow at the Case Foundation and a Fellow at the Institute of Politics at Harvard University and Hollie Russon Gilman, a Democracy Fellow at Ash Center for Democratic Governance and Innovation, Harvard Kennedy School. Subscribers can view the… Read more »

The Challenge of “Unburnable Carbon”

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by John Wilson, former Director of Corporate Governance at TIAA-CREF and the Director of Socially Responsible Investing at the Christian Brothers Investment Services. Subscribers can view the full article in the January edition. The social and economic impacts of climate change may be… Read more »

Principles of Responsible Data

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 »

The Value of a Sustainable Brand

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Michelle Greene, Senior Vice President and Head of Corporate Responsibility, NYSE Euronext. Subscribers can view the full article in the January edition. For b-to-b enterprises, sustainable brand value may not be as readily apparent. The most obvious application may be in serving those… Read more »

Not a Team Sport: The State of Play in Global Shipping

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 20134written by Robert DiMarsico, Managing Director at Poseidon Capital Corp and Senior Advisor to Shipping Practice at FTI Consulting Inc. Subscribers can view the full article in the January edition. Carrying 90% of world trade, shipping is a critically important industry, one which until recently… Read more »

Join #theBIGshift and Accelerate the Transformation to a Sustainable Future

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Dr. Sally Uren, Chief Executive Officer of Forum for the Future, an independent non-profit working globally with business, government and other organizations to solve complex sustainability challenges. Subscribers can view the full article in the January edition. To deliver a more sustainable… Read more »

Sustainability and the Digital Dilemma

Growing reliance on data and hyper-connected IT systems by individuals, businesses and governments makes information security an increasingly important tenet of sustainability. Those reporting institutions that prudently sort through these challenges and take actions to tie the information security-sustainability thread will assume leadership on a formidable global issue that can wreak environmental, social and economic havoc in a keystroke, not a decade.

Water Scarcity as a Business Risk and Opportunity

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by William Sarni, Director and Practice Leader, Enterprise Water Strategy | Sustainability, Deloitte Consulting LLP. Subscribers can view the full article in the January edition. What should the future of water look like? Achieving the desired outcomes, in 21st century water management, means… Read more »

Efficiency Meets Big Data

Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Ben Dear, Partner at Osmosis Investment Management in the United Kingdom. Subscribers can view the full article in the January edition. Any firm that is therefore able to standardize and use the data to provide objective, comparable efficiency rankings, will be highly… Read more »

SustainabilityMapping.com: The Interconnectedness of Things

Each month in the Cornerstone Journal of Sustainable Finance & Banking (JSFB), we will offer thoughts on a “Featured Domain” which is selected from our proprietary “Sustainable Domain Bank”.  The Cornerstone “Sustainable Domain Bank” contains 2,000+ addresses on the Internet which are an articulation of business processes, business practices, and aspirations for a more regenerative… 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 »

A New Approach to Looking at ESG Risk at the Country Level – Using Brazil as an Example

Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013, written by Alexandra Mihailescu Chichon,Head of Business Development, RepRisk AG, and Anna Tuson, Media and Communications Lead, RepRisk AG. As in all investment decisions, but even more critical when emerging markets are concerned, comprehensive research and timely information about what’s happening on the… Read more »

Acting in the Present with an Eye on the Future

Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013, written by Marina Grossi, President of CEBDS, the Brazilian Council for Sustainable Development. The goal of documents like Visão Brasil or even the World Business Council for Sustainable Development`s (WBCSD) original document: Vision 2050 – The New Agenda for Business – is to… Read more »

Next Generation Brazilian Consumers Focusing on Sustainable Actions

Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013, written by Gustavo Piras Oliveira, LatAm Director of Research and Consumer Analyst, UBS. Consumers are becoming highly alert to socially responsible and sustainable actions. Consumers want things that are meaningful for their lives. Sustainable actions should drive demand and profitable growth in Brazil…. Read more »

Sustainable Leadership Platform: Stories of People Who Lead Through Values and Sustainability

Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013, written by Ricardo Voltolini, President-Director of Sustainable idea: Strategy and Intelligence in Sustainability Recently introduced documents within the scope of the United Nations Global Pact address the need for a new type of leader to face the challenges of the 21st century. More… Read more »

Changing Dynamics of the Family

Susan Golombok is a Professor of Family Research and Director, Centre for Family Research, University of Cambridge. She is the author of Parenting: What really counts? and co-author of Bottling it Up, Gender Development, and Growing up in a Lesbian Family. Since the latter part of the 20th century, dramatic changes have taken place to… Read more »

Journal of Sustainable Finance & Banking, December 2013

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.

Brazil’s Energy Outlook – Reconciling Socio-Economic & Environmental Progress

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?

The Television Series: “Modern Family”

Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013, written by Michael Shavel, Research & Business Analyst at Cornerstone Capital Inc. Modern Family’s success is a sign of the times where diversity is not only acknowledged, but is embraced well. Just as television programming and family structures have evolved the manner by… Read more »

Integrated Financial Reporting in Brazil

Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013, written by Robert G. Eccles, Professor of Management Practice at Harvard Business School, Chairman of SASB and member of the Steering Committee of the International Integrated Reporting Committee. Will Brazil’s market structure make it a country leader in adopting integrated reporting? It’s all… Read more »

Respecting Human Rights: Urgent, Necessary, Not Optional

Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013, written by Julie Tanner, Assistant Director of Socially Responsible Investing, Christian Brothers Investment Services (CBIS). With the Rana Plaza building collapse, the Tazreen factory fire, the Deepwater Horizon explosion, and the Foxconn suicides now part of our lexicon, never has the onus on… Read more »

DomainArbitrage.net

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 »

A Construction Company Can Be Sustainable

Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013, written by Carlos Terepins, CEO & Chairman of the Board of Directors, Even Construtora e Incorporadora SA. The reasoning that should propel environmental initiatives is the certainty that society is increasingly recognizing and rewarding companies imbued with true social and environmental duty and… Read more »

Natura: A Sustainability Story

A look into Natura’s pioneering business practices which leverage the beauty of the Brazilian genetic heritage written by João Paulo Ferreira, Sales Vice-President, Natura in the December 2013 edition of the Cornerstone Journal of Sustainable Finance & Banking.