Posts Tagged: United States & Canada

August 2017 Equity Outlook: Tough Comparisons in 2018

Executive Summary Earnings Growth Set to Slow in 2018. S&P margins and earnings are now at record levels, while sales growth has accelerated in recent quarters. Likely reflecting tough comparisons, as well as anticipation of Federal Reserve interest rate hikes that could curb economic growth, the consensus expectation is for earnings growth to slow sharply… Read more »

Equity Outlook: US Equities on Track for More Gains in 2017

Executive Summary Accelerating Earnings Growth. With earnings reporting season about to begin, Q2 2017 S&P 500 operating earnings are forecast to rise 19% from year-ago levels, an acceleration from the 13% rate of growth in Q1 2017. Stable Earnings Expectations. Consensus 2017 S&P 500 estimates have been relatively stable — in contrast to the trend… Read more »

Why the Choice Act Is a Threat to Corporate Stewardship

For over 40 years, some shareholders have been protecting the environment, improving working standards and increasing corporate accountability using a little-known but effective tool called a shareholder proposal. But now this tool is threatened by the legislative push to reform financial regulation. Shareholder proposals allow investors to put questions related to a company’s environmental, social… Read more »

Our Comments to the SEC on the CEO/Worker Pay Ratio Rule

Because our investor clients seek to invest for the long term, we have a strong interest in urging corporate disclosures that enable investors to evaluate risks and make decisions that will affect the long-term health of our clients’ portfolios. Our corporate clients believe that meaningful disclosure that communicates how they are managing environmental, social and governance matters helps them to attract long-term capital.

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

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.

Exploring Ways to Close the ESG Info Gap: Perspective from Canada

A growing body of research confirms that investors around the world are incorporating environmental, social and governance (ESG) issues into their investment decision-making. Adding to the evidence, a recent study of institutional investors in Canada found that investors do consider ESG issues when making investment decisions.