ESG now: Recent Episodes
MSCI ESG Research LLC
Environmental, social, and governance (ESG) news and investment research brought to you weekly covering major market trends and new research insights. With topics ranging from climate impact on investment portfolios, corporate actions, trending investment topics, and emerging ESG issues, host Mike Disabato of MSCI ESG Research walk through the latest news and research that is top of mind for MSCI ESG Research clients and partners. MSCI ESG Research products and services are provided by MSCI ESG Research LLC, and are designed to provide in-depth research, ratings and analysis of environmental, social and governance-related business practices to companies worldwide. ESG ratings, data and analysis from MSCI ESG Research LLC are also used in the construction of the MSCI ESG Indexes. MSCI ESG Research LLC is a Registered Investment Adviser under the Investment Advisers Act of 1940 and a subsidiary of MSCI Inc.
This is the episode four of four we did in partnership with Finance Montreal, recording panelists at their Sustainable Finance Summit. And, fittingly, this last one is on AI.
In this episode, Rheia Khalaf, who leads financial sector collaborations at Mila - Quebec Artificial Intelligence Institute, discusses what she sees when a large, traditional company - the kind that turns like a tanker - decides to bring AI into its systems. She explains why the gap is rarely the technology itself but the governance that can't keep pace with it, from the concentration risk of leaning on a handful of major providers to the "shadow AI" and confidentiality gaps that open up when everyone is vibe coding. She also weighs the other side of the ledger - drug discovery, better climate prediction - against the real environmental cost of the data centers, and the water, energy and materials, that power it all.
You'll also hear from Harlan Tufford of MSCI Sustainability & Climate, on a new model he and his colleagues are building to assess which industries AI is most likely to disrupt - and support. He explores the tension between efficiency gains and job loss, why a figure like sixty percent of labor being automatable is a hypothetical maximum rather than a forecast, and how a company's economic moat decides whether the benefits of automation flow to the company, its competitors, or its customers. He also gets into what gets priced in first - the chatbots automating knowledge work, or the robots that come after.
Enjoy!!
Host: Mike Disabato, MSCI Sustainability & Climate
Guests: Rheia Khalaf, Mila – Quebec Artificial Intelligence Institute; Harlan Tufford, MSCI Sustainability & Climate
This is the third of four episodes we did in partnership with Finance Montreal, recording panelists at their Sustainable Finance Summit.
In this episode, Matthew Lawton, Head of Impact Fixed Income at T. Rowe Price, discusses what makes a blue economy bond credible and impactful, from the alignment of the issuer to the credibility of the proceeds. He explores why emerging markets are leading the global north on blue finance, where the biggest growth is likely to come from - desalination, sustainable shipping and clean drinking water - and how anchoring smaller deals can crowd in capital and scale the market.
You'll also hear from Rik Logtenberg, director of CanAdapt and a city councilmember of Nelson City, on what repeated climate disasters do to a community and why you can't simply build back the same. He also discusses the coordination problem at the heart of adaptation - the workforce, materials, funding and policy that all have to come together at once - and why municipalities carry the responsibility for resilience without the authority to deliver it.
Enjoy!!
Host: Mike Disabato, MSCI Sustainability & Climate
Guests: Matthew Lawton, T. Rowe Price; Rik Logtenberg, CanAdapt
Episode Reading
T. Rowe Price: The Blue Economy
Climate Risk Institute
This is the second of four episodes we did in partnership with Finance Montreal, recording panelists at their Sustainable Finance Summit.
In this episode, Eric Usher, head of the UN Environmental Programme Finance Initiative (UNEP FI), discusses why banks and insurers continue to make progress on their climate commitments despite recent headlines. He explores the global pace of the electric-vehicle transition, the business case for sustainable finance and why leading banks can benefit from lower funding costs.
You’ll also hear from Brian Kernohan, chief sustainability officer at Manulife Investment Management, on why social issues, including housing affordability, income inequality and financial inclusion, deserve greater attention alongside carbon and nature. He also discusses the Taskforce on Inequality and Social-related Financial Disclosures (TISFD) and its potential to make social impacts more measurable for investors.
Enjoy!!
Host: Mike Disabato
Guests: Eric Usher, UNEP FI; Brian Kernohan, Manulife IM
Episode Reading:UN Environmental Programme Finance Initiative
Taskforce on Inequality and Social-related Financial Disclosures | TISFD Global Initiative
This is the first of four episodes we did in partnership with Finance Montreal, recording panellists at their Sustainable Finance Summit.
Today you'll hear from Dr. Sarah Kapnick, the ex-chief scientist of NOAA and how global head of climate advisory at JPMorgan, talking about the weirdening of our natural world is impact all our resources - from drought and the Colorado River to the soil health and how fertilizer shocks are hitting your food supply. And John E. Morton Head of Nature Finance and Investment at the World Wildlife Fund discussing why half of global GDP depends on nature becoming as important as climate in the eyes of investors.
Enjoy!
Episode Reading:
Climate Intuition: Food security: The fates of farming and food in a warming world
Climate Intuition: Food security under pressure: Iran conflict disruptions and a brewing El Niño
Integrating nature into financial decision-making
Guests:
Host: Mike Disabato, MSCI Sustainability & Climate
Guest: Dr. Sarah Kapnick, JPMorgan & John E. Morton, World Wildlife Fund
When conflict disrupted gas exports through the Strait of Hormuz earlier this year, attention focused on gas prices and shipping lanes. But the shock travelled further — quietly rippling through fertilizer markets, where some producers were hit far harder than others, revealing how location-based risk can emerge deep within a supply chain.
Host: Gabriela de la Serna, MSCI Sustainability & Climate
Guest: Cole Martin, MSCI Sustainability & Climate
After the SEC stepped back from shareholder proposal oversight, courts stepped in. We take a look at early signals from this year’s proxy season and whether we're seeing a structural shift in shareholder rights.
Host: Bentley Kaplan, MSCI Sustainability & Climate
Guest: Jonathan Ponder, MSCI Sustainability & Climate
On February 28, the Strait of Hormuz shut down, stranding 20% of the world's crude exports and 20% of global LNG capacity. Energy crises usually send the world running back to coal; but this time, coal generation outside China actually fell, while wind, solar, and batteries picked up the slack. Host Mike Disabato talks with MSCI's Chris Cote about whether a war in the Middle East just accelerated the end of fossil fuels, which industries can pivot now, and why countries burned twice by energy dependence may never go back.
Episode reading: The Opportunity in Energy Disruption — Batteries Included
Host: Mike Disabato, MSCI Sustainability & Climate
Guest: Chris Cote, MSCI Sustainability & Climate
For years, biodiversity risk has been a blind spot for investors — difficult to measure and even harder to link to financial performance. But that’s starting to change. In this episode, we explore how more granular, location-based data is helping investors see where companies are truly exposed to nature-related risks.
Host: Gabriela da la Serna, MSCI Research & Development
Guest: Bettina Meyer, MSCI Research & Development
As climate risk accelerates, insurers face a core challenge — pricing a future that no longer resembles the past. While some are adopting forward-looking models, much of the industry still reacts after losses occur, raising questions about resilience across the financial system.
Guests: David Carlin, D.A. Carlin & Company; Pam Palena, MSCI Research & Development
Host: Bentley Kaplan, MSCI Research & Development
Carbon footprints tell you where a fund has been. But do they tell you how it’s positioned for the road ahead?
In this episode, we unpack new research from Positioning Portfolios for the Energy Transition (link to paper) analyzing more than 37,000 funds representing USD 50 trillion in assets. The research finds that funds with stronger energy transition positioning were associated with higher historical returns — and stronger links to decarbonization outcomes.
We explore the distinction between transition pressure (risk exposure) and transition readiness (strategic preparedness), why managing transition risk is different from achieving temperature alignment, and how investors can balance financial performance with climate objectives.
If you think climate analysis begins and ends with carbon intensity, this conversation may change your perspective.
Host: Mike Disabato, MSCI Sustainability & Climate
Guest: Kishan Gangadia, MSCI Sustainability & Climate
Sustainable investors are redrawing their red lines. As defense spending rises, the definition of “controversial weapons” is being reexamined — from nuclear value chains to AI-enabled systems in the kill chain. Where those lines fall could reshape portfolios.
Host: Bentley Kaplan, MSCI Research & Development
Guest: Mike Disabato, MSCI Research & Development
The 2026 World Cup is bringing the world to North America this summer. But the stadiums hosting the biggest sporting event on the planet face a problem no amount of ticket revenue can solve: the climate they were built for isn't the climate they're operating in. We look at which venues are most exposed to heat waves, flooding, and even the ground sinking beneath them, why this problem goes beyond the beautiful game, and why the insurance and bond markets haven't caught up to what the data already shows.
Episode Reading: What can physical hazard data tell us about the 2026 World Cup?
Host: Mike Disabato, MSCI Sustainability & Climate
Guest: Katie Towey, MSCI Sustainability & Climate
Laura Nishikawa, Head of Emerging Risks R&D at MSCI sits down with Jenn-Hui Tan, Chief Sustainability Officer at Fidelity International, as part of the MSCI Prospectives Podcast to discuss the next phase of sustainable investing. As the public narrative grows noisier and more politicized, they look past the headlines to the economic fundamentals shaping the transition and portfolio management.
The conversation explores where momentum in the energy transition is really coming from, why markets continue to struggle with physical climate risk and how investors are adapting to weaker policy signals, shifting governance dynamics and greater uncertainty in capital markets.
As food retailers work to digitize and enhance their logistics and supply networks, they’re becoming more exposed to cybersecurity risks. In this episode, we discuss how a wave of recent cyberattacks has exposed vulnerabilities across the sector — how prepared companies really are, and why investors may want to sit up and take notice.
Host: Gabriela de la Serna, MSCI Research & Development
Guest: Cole Martin, MSCI Research & Development
Flat prices, steady volumes — carbon markets in 2025 might seem uneventful. But dig a little deeper, and a clearer picture emerges: buyers are paying more for quality. We explore how media scrutiny, new rating systems, and evolving buyer expectations are reshaping how carbon credits are valued.
Host: Bentley Kaplan, MSCI Research & Development
Guests: Nicholas Baldwin & Utkarsh Akhouri, MSCI Research & Development
For years, institutional investors treated human rights as a checkbox exercise, something to monitor after the fact. But a new wave of regulation and stakeholder pressure is forcing a fundamental shift from passive oversight to active due diligence. In this episode, we explore how forward-thinking investors are moving beyond retroactive screening to implement proactive human rights risk management across their portfolios.
Episode Reading: Human-Rights Risks in Portfolios: From Oversight to Due Diligence
Host: Mike Disabato, MSCI Sustainability & Climate
Gust: Aura Dron, MSCI Sustainability & Climate
When policy and markets move in different directions, the results can be surprising. In this episode, we explore five sustainability and climate trends we'll be watching in 2026. From AI-boosted clean tech and central banks enforcing climate risk rules, to investors reckoning with physical hazards in private equity and the rise of state ownership in strategic sectors. We unpack how materiality is maturing, policy is pivoting, and capital is flowing into what works.
To register for the 2026 Trends to Watch webinar, click here.
To review all our trend research we have put out to date, click here.
Host: Bentley Kaplan, MSCI Sustainability & Climate
Guest: Liz Houston, MSCI Sustainability & Climate
When policy and markets move in different directions, the results can be surprising. In this episode, we explore five sustainability and climate trends we'll be watching in 2026. From AI-boosted clean tech and central banks enforcing climate risk rules, to investors reckoning with physical hazards in private equity and the rise of state ownership in strategic sectors. We unpack how materiality is maturing, policy is pivoting, and capital is flowing into what works.
Host: Bentley Kaplan, MSCI Sustainability & Climate
Guest: Liz Houston, MSCI Sustainability & Climate
The EU Sustainable Finance Disclosure Regulation (SFDR) is a corner stone of the EU’s plan to cut carbon emissions and achieve its climate goals. But it has undergone numerous changes, with the most recently announced on Nov. 20. Our question was whether these revisions preserved the SFDR’s stated purpose: promoting transparency and ensuring comparability in how sustainable a financial product truly is.
We explored that question and more in this episode, which covers the changes the EU Commission made to the SFDR.
Host: Mike Disabato, MSCI Solutions & Climate
Guest: Simone Ruiz-Vergote, MSCI Solutions & Climate
Oil spills, labor violations, data breaches. When controversy strikes, should investors pull out, or hold their nerve? We unpack fresh analysis on what happens when portfolios steer clear of scandal-prone firms and the surprising impact on returns.
Host: Bentley Kaplan, MSCI Sustainability & Climate
Guest: Drashti Shah, MSCI Custom Index Solutions
The energy transition is underway, but it’s not a smooth ride. In this episode, we unpack why progress has been so uneven, from surging EV sales to rising coal demand. We explore how tech, cost, and policy are shaping risks and opportunities for investors.
Host: Gabriela de la Serna, MSCI Sustainability & Climate
Guest: Anthony Chan, MSCI Sustainability & Climate
We are in the era of data centers. They are being built with the speed and intensity of factories during the industrial revolution, and with the same sort of capital attraction. But their high emissions, which are under-reported by companies (we will tell you why!), have left both real estate and tech investors with a dilemma: take advantage of the data center boom or have a portfolio with low emissions. We explore this tension in this episode of Sustainability Now.
Helpful Reading: Desire for Data Centers Creates Carbon Dilemma for Property Investors
Host: Mike Disabato, MSCI Sustainability & Climate
Guests: Tom Leahy, MSCI Solutions; Yoon Young Chung, MSCI Sustainability & Climate.
Carbon, selfishly, has dominated the sustainability conversation for some time. But what about the often-overlooked foundation of our everything in our economy: biodiversity. How can you measure that if its basically everything? We show you how in this episode, exploring how every business, from agriculture to technology, depends on the health of ecosystems, and how investors can now quantify those connections through innovative data-driven tools.
By unpacking the creation of our new Biodiversity Risk Index Screen, the conversation reveals how measuring nature’s complexity can help reduce financial exposure to environmental loss and drive more resilient investment strategies. It’s a deep dive into how markets are beginning to account for the true value of the natural world.
Host: Mike Disabato, MSCI ESG Research
Guest: Laura Coomber, MSCI ESG Research
Do hurricanes affect the market? Join us as we cover new research that tracks the financial fallout of storms on company equity. Through asset exposure and climate models, we’ll discuss how storm paths connect to stock prices and why investors may want to take notice, before the next hurricane hits.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Xinxin Wang, MSCI ESG Research
As the planet continues to warm, physical climate risk is no longer an abstract future concern. It is financially material today. The question now is where those risks will materialize and how are companies prepared for those risks. We can help you find out - just by listening to this episode!
Report discussed: https://www.msci.com/research-and-insights/blog-post/the-bill-is-due-physical-hazard-revenue-losses-mount-plans-lag
Host: Mike Disabato, MSCI Sustainability and Climate Research
Guest: James Edwards, MSCI Sustainability and Climate Research
Climate change doesn’t just arrive one disaster at a time. It stacks crises on top of each other: drought followed by flood, heat followed by fire; shocks that turn small problems into big financial hits. In this episode, we talked about how compounding climate hazards are reshaping the bottled water industry, what a 2024 Nestlé scandal reveals about the future of water quality, and why investors should be paying closer attention.
Host: Mike Disabato - MSCI ESG Research
Guest: Cole Martin - MSCI ESG Research
Link to paper discussed in episode: https://www.msci.com/research-and-insights/blog-post/compound-climate-hazards-pressure-beverage-giants
Controlled companies now outnumber widely held ones. New MSCI research shows that this market shift has significant implications for shareholder returns.
Guest: Jonathan Ponder, MSCI ESG Research
Host: Bentley Kaplan, MSCI ESG Research
We already know there is a clear link between ESG ratings and the cost of capital. But the question remains: do ESG ratings matter for bonds and their credit spreads? Should fixed income investors care? Listen to this week’s episode to find out!
Host: Mike Disabato, MSCI ESG Research
Guest: Jakub Malich, MSCI ESG Research
Link to paper discussed in episode: https://www.msci.com/research-and-insights/paper/the-financial-materiality-of-sustainability-risk-in-credit-markets-a-decade-of-evidence
As a new policy landscape emerges in North America, are companies scaling back on sustainability reporting? And will investors go with the flow? Join us as we look at live trends in company disclosures and where the 2025 proxy season is headed.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Julia Morello & Jonathan Ponder, MSCI ESG Research
As the physical risks from climate change grow, so does our reliance on accurate maps to assess them. In this episode, we dig into the limitations of publicly available flood maps and explore how data and modeling in the marketplace have evolved - often surpassing the capabilities of standard public tools.
Host: Mike Disabato, MSCI ESG Research
Guest: Kate Towey, MSCI Climate Risk Center
Let’s venture beyond the portfolio and into the engine room of company performance. In this episode, we explore how ESG Ratings relate to core business fundamentals like profitability, sales variability, and asset turnover. It’s a new piece of a much bigger picture that connects sustainability with financial performance.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Yu Ishihara, MSCI ESG Research
On July 4, the United States enacted the One Big Beautiful Bill Act, a sweeping tax-and-spending package containing some 35 provisions affecting the energy sector. Here, we highlight the most significant measures and examine how the legislation could reshape energy-investment decisions for both corporations and investors.
Host: Mike Disabato, MSCI ESG Research
Guest: Chris Cote, MSCI ESG Research
Junk food is at the center of the political conversation in America and globally, with discussions about ultra-processed and artificial foods, and the changes we need to make to food, and how hungry we are but none of the food is "good." It is a thing! But what does it mean for food companies? And what does it mean for our social pillar where we look at opportunities in nutrition and health - which assess which companies are likely to meet market demand for products with improved nutritional or health profiles. Listen to find out!
Host: Mike Disabato, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research
The energy transition isn’t a straight line. Investors are increasingly look to understand where and how emissions create portfolio risk. In this episode, we explore MSCI’s new energy transition framework and take a closer look at materiality-weighted emissions, a new metric that draws a bolder line to company performance.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Chris Cote & Guido Giese, MSCI ESG Research
How is it going with the carbon credit markets? Are they pricing credits accurately? Is the vitally important Carbon Offsetting and Reduction Scheme for International Aviation also known as CORSIA that relies on functioning carbon credit markets working out? Listen to this episode of Sustainability Now to find out!
Host: Mike Disabato, MSCI ESG Research
Guest: Utkarsh Akhouri and Nicholas Baldwin, MSCI Carbon Markets
Could Swiss pharmaceutical company Roche’s late-stage antibiotic trials signal new hope against antibiotic‐resistant pathogens? On this special REPLAY episode (originally aired August 2024), we take a deep dive into the state of antimicrobial resistance, from hospital wards to farm fields. As these microscopic threats drive up healthcare costs, jeopardize food security, and reshape insurance risk worldwide, understanding the crisis has never been more critical. But while the need to act is clear, the solutions remain complex. In this episode, we examine whether there’s a compelling investment case for fighting back, and what that could mean for the future of global health.
Host: Bentley Kaplan
Guest: Namita Nair
In this episode, we dive deep into the critical role of adaptation finance in helping Asia face the escalating impacts of climate change. As the region experiences rising temperatures and extreme weather events, the demand for resilience-building solutions is greater than ever. With a growing population, rapid urbanization, and a heavy reliance on agriculture, Asia is uniquely vulnerable, but also primed for innovation and growth in climate resilience. Tune in to understand the challenges, opportunities, and investment potential in climate adaptation for Asia’s future.
Episode reading list: https://www.msci-institute.com/themes/climate/how-adaptation-finance-can-help-asia-withstand-a-hotter-future/
Host: Mike Disabato, MSCI ESG Research
Guest: Umar Ashfaq, MSCI Sustainability Institute
Tariffs and tangled supply chains: This week, we explore how commercial aerospace and defense companies are navigating a new wave of trade restrictions. From Boeing to Lockheed Martin, what do transparency and oversight mean when the stakes — and the sky —are high?
Host: Bentley Kaplan, MSCI ESG Research
Guest: Mike Disabato, MSCI ESG Research
From car factories to aluminum smelters to textiles, the purported goal of the Trump administration is to 'reshore' American manufacturing. Its a goal, in part, supported by his predecessor, Joe Biden, who enacted the CHIPS act to bring semiconductor manufacturing back to America. So, let's say manufacturing does come back and companies expand their current factories to meet demand. What climate-driven risks—water shortages, extreme heat, or flooding—will these sites face, and where will those hazards hit hardest? We’ll explore the answers on this episode of Sustainability Now!
Host: Mike Disabato, MSCI ESG Research
Guest: Katie Towey, MSCI ESG Research
Newly imposed U.S. tariffs have triggered market volatility and strategic recalibrations across industries. In this episode, we explore the role of supply chain traceability in managing risk — from regulatory exposure to sustainability trade-offs.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Aura Dron, MSCI ESG Research
As I type this, we are in the midst of a market sell off. So, it’s a perfect time to look at what happened to our ESG indexes during the last market sell offs. Worrisome times!
Host: Mike Disabato, MSCI ESG Research
Guest: Xinxin Wang, MSCI ESG Research
Does the defense industry have an ESG problem? Is there such a thing as an ethical bomb? These are questions emerging as the European Union ramps up investment in its defense sector as part of a broader rearmament effort. In this episode, we examine whether these concerns are well-founded or simply a dubious proposition.
Host: Mike Disabato, MSCI ESG Research
Guest: Olga Emelianova, MSCI ESG Research
Egg prices in the US have soared, but is avian flu the only culprit? This week, we crack open the structural issues in the egg industry, from supply chain vulnerabilities to price-fixing allegations. Plus, what it all means for investors — and your breakfast.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research
In February 2025, the EU Commission proposed the first Omnibus Package of sustainability rules, with the aim of simplifying and reducing EU sustainability reporting requirements. But did it work? Has the outcome been "good" or "bad"? And what are these new rules set to do to the future of sustainable finance in the EU? Listen to this episode of ESG now to find out!
NOTE: The first 12:10 of this episode provides a background of what the Omnibus proposal actually proposes. If you just want our takes on the good, the bad, and the future of this proposal, skip that section!
Host: Mike Disabato, MSCI ESG Research
Guest: Simone Ruiz-Vergote, MSCI ESG Research
Banks face growing pressure from regulators to assess the risks climate change poses to their loan portfolios. Some regions, like Europe, are tightening standards, while others, like the U.S., remain hesitant. Our latest research reveals that banks with high exposure to industrials—especially in APAC—could see default risks rise by 50% over the next decade. Will global banks adapt, or are we heading toward a financial blind spot? Find out on this episode of ESG now!
Host: Mike Disabato, MSCI ESG Research
Guests: Anja Ludzuweit and Guilherme de Melo Silva, MSCI ESG Research
Oil and gas are in, renewables are out — at least, that’s what the headlines say. But what’s really happening in energy markets? We take a closer look at shifting U.S. policies, investor reactions, and how global energy trends might shape the future.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Mathew Lee, Chris Cote & Elchin Mammadov, MSCI ESG Research
The quest for higher returns with lower risk is a fundamental principle of successful investing. Study after study shows that investors can use sustainability data to identify more profitable, less risky companies with higher long-term returns. But what about protecting your portfolio from massive drawdowns? Or better yet, seeing which sustainability data points matter most for which industries? Well, you're in luck because that is what this episode is all about!
Host: Mike Disabato, MSCI ESG Research
Guests: Liz Houston and Xinxin Wang, MSCI ESG Research
What are climate scenarios? Can I do them myself, or do I need a supercomputer and an advanced degree to make them work? They are certainly important in this day and age, especially as once-in-a-lifetime destructive events seem to be becoming the norm. That’s why we decided to do an episode demystifying the whole process of climate scenario analysis. Luckily, our guest today, James Edwards, along with his co-authors, Nathan Faigle and Wenmin Li, wrote a practical guide on the topic called How can I use climate scenarios? A practical guide (link below). Thanks to their work, we were able to gather some useful tips on how even we, the humble listener, can conduct our very own climate scenario analysis. Enjoy!
Report: https://www.msci-institute.com/insights/comment/how-can-i-use-climate-scenarios-a-practical-guide/
Host: Mike Disabato, MSCI ESG Research
Guest: James Edwards, MSCI Climate Risk Center
Fires continue to rage in Southern California, destroying homes and businesses and leaving thousands stranded. But Los Angeles and its surrounding areas are unfortunately not unique when it comes to wildfire risk. So where is the next fire likely to be? And what can investors do about it? We discuss on this week's episode of ESG now.
Host: Mike Disabato, MSCI ESG Research
Guest: Katie Towey, MSCI Climate Risk Center
One of Australia's biggest casinos is in big trouble, plagued by money laundering investigations and a dwindling pool of domestic gamblers. We look at whether the rise of online gambling may make problems like these redundant in future, and what new risks investors may want to be on the lookout for.
Host: Bentley Kaplan, MSCI ESG Research
Guest: SK Kim, MSCI ESG Research
Join us as we cover the sustainability and climate trends that our team thinks will shape the year head. We talk about the energy transition opportunities that are emerging in private markets, rising social risks and the tech giants, falling data access for AI models and much more. Here’s to a big, intriguing 2025!
Host: Bentley Kaplan, MSCI ESG Research
Guests: Liz Houston, Namita Nair & Jonathan Ponder, MSCI ESG Research
We put out the world’s first price forecast for Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)! In it we analyzed the potential demand, supply and prices for credits under CORSIA, and how much the scheme could cost the airline industry in terms of higher ticket prices or lower profits. In this episode we explore the reports findings from one of its main authors, Faris Pleho. Enjoy!
Report: CORSIA: Costs and Implications for the Airline Industry
Host: Mike Disabato, MSCI ESG Research
Guest: Faris Pleho, MSCI Carbon Markets
What do market participants actually think is going to happen to their assets due to climate change? And when do they expect it? And do they think we will ever abandon fossil fuels? Well to answer those questions (and any others!), you need a survey. Luckily, we've got one! We've linked it below, and created a podcast episode about it. Enjoy!
Link to the survey: https://www.msci-institute.com/wp-content/uploads/2024/11/MSI-Survey-Report-061124_2.pdf
Host: Mike Disabato, MSCI ESG Research
Guest: Russ Bowdrey, MSCI ESG Research
Energy-hungry data centers are the backbone of AI. And as big tech companies look to meet rising demand for AI capabilities, their emissions are ticking up. So, are net zero ambitions at risk? Or can they be saved by a decades-old energy source in a new guise?
Host: Bentley Kaplan, MSCI ESG Research
Guests: Yoon Young Chung & Mathew Lee, MSCI ESG Research
VW announced it would shut at least three of its German plants, axe tens of thousands of jobs and slash pay by 10%. This is notable because VW is the powerhouse of Germany which typically has been the EU’s industrial engine – meaning jobs, meaning unions, meaning political might. But this is more than a VW story. It is a story of how the energy transition – the transition from pollutive to non-pollutive forms of economic operations – is upending the global order of established industries. It is the story of the hard tradeoffs we have to make in our effort to cut carbon emissions.
In this episode we explore that new world and what it means for the auto industry; an industry many countries and states rely on for their economic driver.
Host: Mike Disabato, MSCI ESG Research
Guest: Yu Ishihara, MSCI ESG Research
Well not yet. But on October 11, a UN expert group reached a compromise on key elements of a global carbon trading system. If it passes (we go into this, don’t worry), it will resolve nearly a decade of talks on a what is seen as a fundamental tool for the Paris Agreement to be achieved. So, in this episode, we discuss why this global carbon market agreement is so important, and what it will do to the already up and running voluntary carbon markets.
Host: Mike Disabato, MSCI ESG Research
Guest: Juana Hernandez, MSCI Carbon Markets
Heat waves are getting longer and more intense. And although mitigating climate change will remain a long-term priority, investors will also be thinking about adaptation technologies. The humble air conditioner is an off-the-shelf solution, but does it have any downsides?
Host: Bentley Kaplan, MSCI ESG Research
Guest: Mathew Lee, MSCI ESG Research
Today is the last part of a three part series we've done for ESG now: we examine whether investors should care about incorporating environmental data into equity analysis. In previous episodes we discussed the social pillar and the governance pillar, now its on to the environmental pillar of our ESG ratings model. We look at the environmental pillar as a whole and the themes that build it and tell you whether companies that scored well on each theme performed better than their lower scoring peers.
If you want to read the blog that is associated with this podcast, here is the link: https://www.msci.com/www/blog-posts/managing-climate-change-risks/04992064034
Guest: Xinxin Wang, MSCI Research; Elchin Mammadov, MSCI ESG Research
Host: Mike Disabato, MSCI ESG Research
It’s climate week in The Big Apple! And the perfect time to take a look at different investment approaches to a low-carbon transition. We talk through financial risks and opportunities for companies, transition funds, and how the things are playing out in bond markets.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Meggin Eastman, Chris Cote & Michael Ridley, MSCI ESG Research
Flooding is one the costliest of all natural hazards and climate change is raising the stakes. In this episode, we discuss the need for precise asset locations and forward-looking climate models to figure out your risk exposure.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Matthias Kemter, MSCI ESG Research
The 2024 proxy season has come and gone. In recent years, environmental and social proposals were abundant and saw record high support among shareholders. But what about this year? In this episode we take you through our findings from the 2024 proxy season, what they mean for sustainable investing, and where the future is liking headed.
Host: Michael Disabato, MSCI ESG Research
Guest: Jonathan Ponder, MSCI ESG Research
Antimicrobial resistance is getting worse. Set to impact healthcare, agriculture and insurance, it’s a phenomenon worth paying attention to. On this episode, we take a look at whether there’s an investment case for fighting back against the superbugs.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Namita Nair, MSCI ESG Research
We periodically put out this report called the Net-Zero Tracker, and it examines the progress by the world’s listed companies toward curbing climate risk. This episode is a dive into the most important bits of our most recently published report.
Link to the Net-Zero Tracker: The MSCI Sustainability Institute Net-Zero Tracker
Host: Mike Disabato, MSCI ESG Research
Guest: Sylvain Vanston, MSCI ESG Research
The social pillar has often been maligned as the ignored sibling of the ESG acronym. In its essence, the social pillar is a measurement of how a company, its employees, its products, and the community it operates in are supported and often challenged. For this episode, we show you why that all matters for measuring a company’s market performance.
Host: Mike Disabato, MSCI ESG Research
Guest: Liz Houston, MSCI ESG Research; Xinxin Wang, MSCI ESG & Climate Solutions Research
It’s early days for sustainability-linked bonds, where issuers see their interest rates rise after missing sustainability targets. But instead of throwing in the towel after some initial setbacks, we talk about companies that have doubled down on their sustainability commitments.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Guilherme de Melo Silva, MSCI ESG Research
Good governance is foundational to effective capital markets, promoting accountability, transparency and sound decision-making aligned with investor interests. But how do those potential benefits translate into market performance? Well today, we answer that question for you! We answer the question: does governance even matter.
If you want to read the blog mentioned in this podcast, it can be found here: https://www.msci.com/www/blog-posts/corporate-governance-market/04784692180
Host: Mike Disabato (MSCI ESG Research)
Guest: Xinxin Wang (MSCI ESG & Climate Solutions Research)
Data from over 4,000 issuers, spanning nearly a decade revealed that companies with better MSCI ESG Ratings tended to have a lower cost of capital. It’s big news for investors and another step towards understanding the relationship between sustainability and financial performance.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Jakub Malich & Anett Husi, MSCI ESG Research
Our demand for electricity is growing for the first time in decades. Nuclear energy is being proffered as the answer to our veracious energy-appetites. But are investors capable of propping up an industry with so much complexity and risk? This episode provides an answer.
Host: Michael Disabato, MSCI ESG Research
Guest: Elchin Mammadov, MSCI ESG Research
What is impact materiality, you ask? And how is it different from financial materiality? A fine and important question, listener! In this episode we take you through all the details you need to parse through the most important sustainability-jargon out there. Including, an explanation of the EU's Corporate Sustainability Reporting Directive, or the CSRD, which has its first required reporting cycle due next year.
Host: Mike Disabato, MSCI ESG Research
Guest: Meggin Thwing Eastman, MSCI ESG Research
When it comes to climate altering carbon emissions, investors, like asset managers and banks, used to only measure their direct carbon emissions from their buildings and purchased electricity. But now, they are being asked by regulators, stakeholders, and clients to report on the emissions associated with their investment portfolios – a much more complicated and vital task. In this episode, guest Carrie Wang explains to host Mike Disabato why portfolio carbon footprinting is so important to the future of investing and so complicated.
Host: Mike Disabato, MSCI ESG Research
Guest: Carrie Wang, MSCI ESG Research
They may not be new, but climate funds have recently hit their stride. From managing transition risk, to targeting technology opportunities, to aligning with the Paris agreement – these funds come in all shapes and sizes and with pretty diverse objectives. On this episode we catch you up on where climate funds stand today, and how differently they’re evolving in public and private markets.
Host: Margarita Grabert, MSCI ESG Research
Guest: Rumi Mahmood, MSCI Sustainability Institute
Maybe a rose by any other name would smell as sweet, but that’s not going to fly for sustainability funds in the EU. On this episode we break down ESMA’s latest fund guidelines and discuss their place in a regulatory landscape with all kinds of moving pieces.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Meggin Eastman & Simone Ruiz-Vergote, MSCI ESG Research
Airlines are part of a hard to abate industry for a reason as there is not one straightforward path to decarbonization. In this episode, we discuss the options that airlines have to reduce their direct emissions in the coming decades – and we tell you which ones are more likely to be more viable.
Host: Gabriela de la Serna, MSCI ESG Research
Guest: Michael Disabato, MSCI ESG Research
Alcoholic beverage companies are trying to navigate through a changing world, one where tastes are evolving, and resources are getting scarcer. In this episode, delve into the significant challenges and innovative strategies the alcoholic beverage industry is employing to combat this shift in drinking trends.
Host: Michael Disabato, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research
Everyone is talking about AI, but on today’s episode we focus on the technology’s potential to disrupt health care. Then, we switch things up to look at how wildfires are exacerbating physical, legal and financial risks for electric utilities in the U.S.
Host: Gabriela de la Serna, MSCI ESG Research
Guests: Namita Nair & Mathew Lee, MSCI ESG Research
Coal still makes up a big cut of China’s energy mix. But the country’s growth in renewables is undeniable. As climate targets are laid down and climate change accelerates, figuring out China’s emissions trajectory is tricky. And that’s OK – we love a tricky discussion.
Host: SK Kim, MSCI ESG Research
Guests: Cody Dong & Siyao He, MSCI ESG Research
For some investors, having a climate-savvy director on a company’s board may seem like a non-negotiable. But data from some of the world’s biggest greenhouse gas emitters shows that successful climate governance is complex and may require more than pinning all your hopes on a climate superstar.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Florian Sommer, MSCI ESG Research
This week we provide an update to our March 2022 episode titled Children in the Cocoa Field that explored the growing problem of child labor in cocoa harvesting. And the attempt by Nestlé to use money and enhanced mapping technology to combat its prevalence. It sounds bleak, but it was a great story about how technology is allowing for better transparency in our world's supply chain.
Host: Michael Disabato, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research
Plastic is an inescapable reality of the modern world. But trading off its convenience and versatility for environmental and health impacts is getting harder. Companies that make or rely on plastic are being pushed to improve recyclability and reuse. And as tempting as it is to believe everything you read on a label, it looks like the road to a genuine circular economy is still going to be a little bumpy.
Host: Margarita Grabert, MSCI ESG Research
Guest: Sam Block, MSCI ESG Research
The SEC’s climate disclosure rule is finally here. It’s been a journey, one akin to a film drama full of plot twists, cliff hangers and edge of the seat moments. So in honor of the drama, this week we do a film review of sorts on this wide reaching regulation - going into the plot, the actors involved, and how the industry is likely to be affected by it.
Host: Michael Disabato, MSCI ESG Research
Guest: Zohir Uddin, MSCI Government and Regulatory Affairs; Mathew Lee, MSCI ESG Research
We have been reporting on board’s gender diversity since 2009, and while progress has undoubtedly been made, the road ahead is still long. Linda-Eling Lee from MSCI’s Sustainability Institute tells us why we started compiling this report in the first place, and how it has managed to remain relevant in 2024. Then, our colleague Christina Milhomem tells us what the numbers say- what has or hasn’t changed, which regulations are coming our way- and why investors should think of diversity as an indicator of management oversight.
Host: Gabriela de la Serna, MSCI ESG Research
Guest: Linda-Eling Lee, MSCI Sustainability Institute; Christina Milhomem, MSCI ESG Research
ExxonMobil filed a legal complaint against two of its own shareholders, who were hoping to put a climate-related proposal to a vote at the company’s upcoming AGM. We discuss why it’s a decision that could have consequences for the wider shareholder community and the companies they invest in.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Harlan Tufford, MSCI ESG Research
Valentines day is replete with marketing by luxury brands attempting to capture the eyes of anxious lovers wanting to do right by their partners during the holiday. But what can you know about the product you’re buying from a luxury company? Can you know where its raw materials are sourced? Or where that material is produced? And who’re running these luxurious companies? We discuss all this and more on this week’s episode of ESG now.
Host: Mike Disabato, MSCI ESG Research
Guest: Liz Houston, MSCI ESG Research
The stakes on data protection and privacy are only getting higher. Hacks, breaches and data leaks are becoming bugbears of the modern corporate world. Insurers offer products for cyber-related incidents, but in a complex, evolving risk landscape, there are a lot of asterisks. We take a look at the current cyber insurance market, and how insurers are de-risking their positions through cyber catastrophe bonds.
Host: Margarita Grabert, MSCI ESG Research
Guest: Federico Darakdjian, MSCI ESG Research
Audit firms have been under scrutiny lately after scandal and concern have led some to worry the vital industry is in trouble. But to understand whether fears around an auditor are credible, one must understand how to assess auditor quality. In this episode, we teach you how to assess an audit firm, and answer the question that some are posing: is there a crisis in the audit industry?
Host: Mike Disabato, MSCI ESG Research
Guest: Jon Ponder, MSCI Carbon Markets
One door plug blowout, one emergency landing and zero injuries. For Boeing, quality checks and tailored governance structures aren’t adding up to a great safety record. But looking at the underlying ESG data might shed light on where things might be going wrong.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Mike Disabato & Harlan Tufford, MSCI ESG Research
Biodiversity is everywhere from food production to pharmaceutical drugs, so the biodiversity crisis puts both society and the global economy at risk. And while it is like the climate crisis in its cause, there are complexities and measurement difficulties that make the biodiversity crisis a distinct problem for investors to address compared to the climate crisis. On this episode we sat down with our colleague Arne Klug to understand where this complexity comes from and how can investors go about it when trying to include biodiversity in their investment practices.
Host: Gabriela de la Serna, MSCI ESG Research
Guest: Arne Klug, MSCI ESG Research
The carbon markets have been a provider of hope and despair in the fight against carbon emissions. In 2023, there were concerns around whether the carbon credits being sold actually abated the amount of carbon they claimed to. Yet the market still has promise and changes are being made to the methodologies of carbon credit assessment organizations to address the problems uncovered in 2023. For the first ESG now episode, we sat down with our head of Carbon Markets at MSCI, Guy Turner, to understand how carbon markets actually faired in 2023, what they might look like in 2024, and why carbon credits and offsets will remain an important part of our world’s attempts to decarbonize.
Host: Mike Disabato, MSCI ESG Research
Guest: Guy Turner, MSCI Carbon Markets
We think 2024 is going to be a big year! From extreme heat hitting home and work, to the frothy wonderland of AI bumping against data privacy risks and scarce talent, to the role that private capital is going to play in the climate transition, and so much more. Join us as we take a sneak peek at next year's sustainability and climate trends.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Liz Houston, MSCI ESG Research
As extreme weather events become more prevalent, the utilities sector is on the front lines. From investing in microgrids to burying transmission lines, there are ways to help climate-proof infrastructure. But funding is key, and it looks like the green bond market is a good a place to start.
Host: Margarita Grabert, MSCI ESG Research
Guest: Meghna Mehta, MSCI ESG Research
Producer: Bentley Kaplan, MSCI ESG Research
We are on the ground at COP 28!! Right now, in the UAE, most of the world’s power brokers are gathered to talk about the climate emergency, the world’s plans for lowering emissions, and everything in between. For this episode, we interviewed our Global Head of Climate Research, Oliver Marchand, who is at COP 28 - meeting folks and having talks. He told us what he has been seeing and how he thinks the talks are proceeding.
Host: Mike Disabato, MSCI ESG Research
Guest: Oliver Marchand, MSCI ESG Research
We’re thirsty, y’all! In a year, we drink 350 billion liters of bottled water, most of it from plastic. But it’s a product with a hefty environmental footprint, and big climate risks. We take a look at what might lie ahead for companies and investors.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research
Some say oil demand is soon to peak. Well, if that is true, why are some oil and gas producers growing their reserves? If there is uncertainty on how oil will perform in the future, how are oil and gas companies positioning themselves amid an ambiguous low-carbon transition? We try to answer these questions on this episode of ESG now.
Host: Mike Disabato, MSCI ESG Research
Guest: Chris Cote, MSCI ESG Research
You trust a retail store to be convenient. You can walk in and get basically anything you need - be it food, clothes, face wash, batteries...whatever. Retail companies have built their brands on that convenience and affordability factor. But would you trust a retail company to be your healthcare provider? Well they are betting on that - Amazon, Walmart, and others are getting into the healthcare game. And in this episode, we discuss what it might look like to have an Amazon employee administer a flu test.
Host: Gabriela de la Serna, MSCI ESG Research
Guest: Namita Nair, MSCI ESG Research
This week, we are returning to five stories we have already covered to see what progress has been made (if any!): The Adani Group and its attempt to address a short seller report that questioned the group’s governance that led to a massive loss in market share; the United Auto Workers strikes and the continued struggle in the auto industry; the Inflation Reduction Act and the trillions of dollars of capital is supports; what the EPA’s methane rule has done for the gas industry in the US; and how Exxon has changed after having three seats of its 12 member board taken by over by Engine No. 1, an activist investor worried about carbon emissions.
Host: Mike Disabato, MSCI ESG Research
Guest: Harlan Tufford, Yu Ishihara, Mathew Lee, Chris Cote, Antonios Panagiotopoulos; MSCI ESG Research
The Nobel Memorial Prize in Economic Sciences was awarded on Monday to Claudia Goldin, a Harvard professor, for her work to advance the world’s understanding of women in the work force. She made history by being the first woman to win the award solo rather than sharing in the prize. To honor her achievement, we discussed our own gender pay gap research that is in part informed by academics like Dr. Goldin, focusing on a new regulation in Japan that mandated companies disclose their pay gap data. And then, after we go through the numbers, we have a special part of this episode where colleagues come on to share their experiences of work before and during motherhood.
Host: Mike Disabato, MSCI ESG Research
Guest: Yukie Shibano, Laura Nishikawa, Gillian Mollod, Siyu Liu, and Linda-Eling Lee, MSCI ESG Research and MSCI Sustainability Institute
With Governor Newsom poised to sign two new climate reporting bills into law, we look at what’s in them, why they matter, and why everyone is suddenly making a fuss about Scope 3 emissions.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Zohir Uddin & David Bokern, MSCI ESG Research
Despite growing demand for clean energy, price parity with fossil fuels and friendly policies, renewable energy companies are facing some tough headwinds. We take a look at why that's happening and what Orsted's no good, very bad August can tell us about the rest of the industry.
Host: Margarita Grabert, MSCI ESG Research
Guest: Elchin Mammadov, MSCI ESG Research
The demands made by the United Auto Workers (UAW) to the big three auto companies in the US are varied and touch on every part of ESG. But what may loom largest is the ongoing transition to electric vehicles that will change how a massive industry operates and employs its millions of workers. We discussed what the strikes mean for the future of the auto industry, and why the UAW is fighting an uphill battle as its industry changes.
Host: Mike Disabato, MSCI ESG Research
Guest: Yu Ishihara, MSCI ESG Research
We have likely entered in to an El Nino season as of June 2023. El Nino forms and then eventually dissipates as trade winds that blow to the south of the equator shift and impact the flow of the ocean below them. This means the world gets hotter, even hotter than the record heat we have already seen (which is tough to hear). In this episode, we discuss what that sort of warming will likely do to global crop yields and the debt levels of the world’s economies.
Host: Mike Disabato, MSCI ESG Research
Guest: Alex Schober, MSCI ESG Research
With fashion brands now producing 52 “micro seasons” a year, more and more clothing is being unsold or discarded. And recycling clothing is more difficult than you may think. As the EU looks to increase accountability for post-consumer waste, we take a look at what it could mean for clothing companies and their investors.
Host: Gabriela de la Serna, MSCI ESG Research
Guest: Liz Houston, MSCI ESG Research
The EU has set up a number of regulations to define what is and is not environmentally sustainable. Part of those regulations touch investment funds as most assets under management in Europe (~EUR 7 trillion out of EUR 12 trillion) are invested in ESG funds or strategies with some sustainability-related focus. Is this episode we look at what the affect of these defining regulations have been on the fund investment landscape in Europe, and whether the EU has been successful in its intent.
Host: Mike Disabato, MSCI ESG Research
Guest: Rumi Mahmood, MSCI ESG Research
Artificial intelligence is rolling out in a big way across different industries and sectors. With much to lose and much to gain from this new trend, investors will be looking to boards that ask good questions and get good answers – even if that means letting AI into the boardroom.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Tanya Matanda & Harlan Tufford, MSCI ESG Research
Producer: SK Kim, MSCI ESG Research
Commodities like palm oil, beef and cocoa are intertwined with deforestation. The EU wants to change this. We talk about the bloc’s latest law and how it’s going to ask food companies to take supply chain due diligence and traceability to a whole new level.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research
[Cole Martin would like to thank Marc Lieberman for his contributions to this episode]
Airlines have been offering customers with the option to purchase carbon credits or to support sustainable aviation fuel as they are buying a plane ticket. The airlines claim in doing so, the customer can lower the emissions of their trip and thereby lessen its impact on climate change. Sounds great! But, is that true? Are your emissions really lowered by those carbon credits? And can airlines use the promise of abated emissions, or better yet, sustainable fuels, to claim they are already carbon neutral? On this episode, we discuss aviation’s ambitious climate plans, why some of the advertising around these plans has gotten the industry in to legal trouble, and what the future holds for airlines and passengers that are worried about their carbon emissions.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Mike Disabato, MSCI ESG Research
User privacy on internet platforms is sliding higher up the “to do” list of the EU’s regulators. Five years after a trailblazing law was passed – the General Data Protection Regulation (GDPR) – we’re starting to see its enforcement moving up a notch. For big tech companies that rely on personalized advertising, like Meta and Alphabet, their future in the EU is starting to look a little more complicated.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Yoon Young Chung & Andrew Young, MSCI ES Research
Producer: Gabriela de la Serna, MSCI ESG Research
Our planet’s hottest days on record were recorded July 3 to July 5. Global average temperatures rose to a new high of 62.9 Fahrenheit. And even as the days get less sweltering, we all seem to be collectively looking around wondering what might happen next month. It is a collective fear that doesn’t seem to have rattled the market. Even so, today we discuss what the ever increasing temperatures mean for the companies you invest in and what cities might be most effected in the coming decades if the world continues to warm.
Host: Mike Disabato, MSCI ESG Research
Guests: Mathew Lee, MSCI ESG Research
The EU is ironing out the final details of its Corporate Sustainability Due Diligence Directive. We look at what it could mean for how companies identify, mitigate and report on their impacts on human rights. It’s a pioneering step that not only stands to affect European companies, but global ones that earn revenue in the EU market.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Aura Toader & Leslie Swynghedauw, MSCI ESG Research
Part of proxy season is over, so we take a look at the landscape of shareholder proposals. And it is well known for to those who are closely watching shareholder proposals that ESG proposals have pretty much plummeted this year vs. last year and previous years – but why is that? Are ESG shareholder proposals losing steam and momentum? Or is that maybe too simple of a reading of the data? We also discuss the new crop of proposals coming out from a set of contrarian shareholder groups that buck the trend of proposals to date.
Host: Mike Disabato, MSCI ESG Research
Guest: Harlan Tufford, MSCI ESG Research
Semiconductors are used in ev-er-y-thing. But semiconductor manufacturers have a high greenhouse gas (GHG) emissions footprint. Since they are so ubiquitous in our economy, will they get a free pass and not be pressured to lower their GHG emissions? Or will the expanding industry be pushed to lower their emissions a la the oil and gas industry? These questions and more are answered on this week's episode of ESG now.
Host: Mike Disabato, MSCI ESG Research
Guest: Siyu Liu, MSCI ESG Research
Under pressure from wildfires and inflation, State Farm has stopped issuing new homeowner policies in California. We get to the bottom of how physical climate hazards may change the future shape of the insurance industry. And then we ask why the Net-Zero Insurance Alliance is a little different from the other alliances that fall under the GFANZ.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Cody Dong & Sylvain Vanston, MSCI ESG Research
There are a number of looming carbon emission regulations set to hit the commercial real estate sector in the coming years. These regulations would require building managers to retrofit their asset’s with emissions reducing technology else face hundreds of millions of dollars’ worth of fines. We discuss what these regulations mean for the long-term sustainability of the commercial real-estate sector, and the financial importance of making a building more energy efficient.
Host: Mike Disabato, MSCI ESG Research
Guests: Mark Bessoudo, MSCI ESG Research
Are you aware of how much progress we are making on addressing climate change? There are all-these-pledges and all-these-plans made by companies, but have those plans been useful? Are they actually making progress on cutting emissions or are they just saying, “yeah we care about it, and we will do….something.” And what are those “somethings?” Are they far away technologies that can suck the bad stuff out of our atmosphere like a sort of techno-savior? Or something else? We answer those questions on this episode of ESG now.
Host: Mike Disabato, MSCI ESG Research
Guests: Sylvain Vanston and Chris Cote, MSCI ESG Research
NGOs have filed a lawsuit against BNP Paribas, arguing that bank has failed in its “Duty of Care”, under French law. As climate-related litigation escalates, we take a closer look at BNP’s financed emissions. And then, lawmakers have mandated the inclusion of female executives on the management boards of large German companies. We look at how things have shifted at this early stage and what that means for governance.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Guilherme de Melo Silva & Florian Sommer, MSCI ESG Research
To meet net-zero ambitions, it looks like we’re going to need a whole lot of solar energy, and fast. And a complex value chain is bracing for soaring demand. In this episode, we work through the risks and opportunities for investors and companies (and not only the ones you’re expecting).
Host: Bentley Kaplan, MSCI ESG Research
Guest: Mathew Lee, MSCI ESG Research
There is a considerate environmental cost to e-cigarettes. The critical metals that make up their batteries are more likely to be found in landfills than recycling facilities. Not only does this pose a problem for the environment but regulators are starting to take notice. In this episode, we discuss the environmental problem of e-cigarettes and what may be done to address it. Then, we discuss the ambitious new regulation on tail pipe emissions by the US Environmental Protection Agency that might be the most ambitious air quality regulation ever.
Host: Mike Disabato, MSCI ESG Research
Guests: Aura Toader and Yu Ishihara, MSCI ESG Research
Special thanks to Margarita Grabert and Gabriela De La Serna for their help with this episode.
This week we discuss why air pollution is a topic that investors may want to take greater interest in. It is not only a macro-economic burden, but also affects every company operating in polluted areas.
Host: Mike Disabato, MSCI ESG Research
Guests: Simon Albrecht and Jurgita Balaisyte, MSCI ESG Research
The Colorado river is shrinking and the tens of millions of Americans that rely on the water source are having to deal with the possibility of imposed water cuts. The urban sprawls that have peppered the desert are also in competition with the industries that operate in the area and use the water from the Colorado river: agriculture, semiconductors, and energy. In this week’s episode we discuss what happens when companies no longer have access to the water they need to operate.
Host: Mike Disabato, MSCI ESG Research
Guests: Cole Martin, Siping Guo, Mathew Lee; MSCI ESG Research
This week we discuss the new anti-obesity drugs that many have claimed could spell an end to the world’s obesity epidemic. But ESG and diseases are not so straight forward. For example, we include diabetes medication but not obesity medication in our access to healthcare key issue. Why is that? We explore the topic in this week’s episode.
Host: Mike Disabato, MSCI ESG Research
Guest: Namita Nair, MSCI ESG Research
From being a go-to bank for US tech start-ups, SVB’s collapse was swift and chaotic. As investors and regulators pick through the wreckage, we look at how much of this story was actually about ESG. And we draw a bold line between financially relevant ESG risks and financially relevant financial risks.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Harlan Tufford, MSCI ESG Research
South Korea’s government has proposed a change to laws governing working hours. We look at why the proposal has not been well received by key stakeholders and what it could mean for how companies manage their workforces in future. And then we look at how shareholders’ approach to climate engagement might be changing, but also staying the same.
Host: Bentley Kaplan, MSCI ESG Research
Guests: SK Kim & Florian Sommer, MSCI ESG Research
ESG has always been different things to different people. But some of its newest critics suggest that ESG investing is being used to impose liberal ideologies on companies, their investors and their employees. We take a closer look at this backlash in the US, including proposed legislation.
Host: Bentley Kaplan, MSCI ESG Research
Guest: Meggin Eastman, Head of New ESG Research Solutions, MSCI ESG Research
Music: “Curious Play” by PhilLarson [License Code: YFUS65RN4A (Envato Elements)]
A Japanese publishing company allegedly bribed an Olympic committee member to become an official sponsor of the Tokyo Games. As Kadokawa Corp picks up the pieces, we ask what governance factors may have led to this point. And then we look at why doing the “right thing” by sourcing slavery-free cocoa is becoming a regulatory imperative, even for ice cream makers.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Moeko Porter & Aura Toader, MSCI ESG Research
The derailment of a train carrying possibly hazardous materials near East Palestine, Ohio on February 3 has prompted environmental concerns and chemical fears for residents. They have returned home but even as state officials work to reassure them, many remained concerned. The curious thing about all this is Norfolk Southern, the company that operated the train, did not have to label the rail cars carrying the chemicals as hazardous – which would have prompted more safety regulations to be in place. We discuss why the company didn’t have to do this (hint: regulatory thresholds) and what this derailment means for an industry already struggling with labor relations issues.
Host: Mike Disabato; MSCI ESG Research
Guests: Bentley Kaplan; MSCI ESG Research
There have been over 70,000 people laid off from their jobs in the tech industry – an amount unseen since the dot.com bubble burst. Layoffs are an inevitable part of a capitalist system and, so, come with the territory for companies. But what is not inevitable is the reaction the surviving employees have to seeing their friends and colleagues let go: will they be angry at the company they still work for? Motivated? Fearful? ESG tries to assess the long-term effects that layoffs have on company performance. In this episode, we discuss how ESG does this and why it is important.
Host: Mike Disabato; MSCI ESG Research
Guests: Liz Houston; MSCI ESG Research
Research discussed outside of MSCI ESG Research: https://hbr.org/2018/05/layoffs-that-dont-break-your-company
Gautam Adani, whose empire the Adani Group, was rising along with India’s economy. Then a little known US short seller perhaps aptly named Hindenburg released a report that accused the Group of some pretty damaging business practices. Adani said the report was bogus, the market reached anyway, and now one of the most important companies in India is fighting investor perception. But how did this happen? Weeks ago, Adani Group seemed like a stable growth story. Yet, when it comes to Governance, ESG saw some risky signs in Adani Group and companies like it years ago. We explore what those vulnerabilities were, and why they might have left Adani Group susceptible to attack by a small, previously unknown short seller.
Host: Mike Disabato, MSCI ESG Research
Guest: Zanele Mtshali, MSCI ESG Research
The US central bank wants climate data from the country’s “big six” banks. It’s a telling shift and one that is echoed across several jurisdictions. We look at what this means for both banks and their investors. Then we jump into the mosh pit of ticket sales to figure out why Live Nation and Ticketmaster keep landing in the headlines.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Carrie Wang, Sita Subramanian & Helen Marlow, MSCI ESG Research
What if there is a water utility that saves a city millions of gallons worth of water a day, but also increases its carbon emissions by a large amount? What if a company makes a product that saves people, but it allegedly uses forced labor to do so? Do you avoid these companies and products? Are you a follower of the Ethics of Ambiguity in that the means of production is the same as the ends? In this episode, we discuss the conflicts that arise for investors, impact investors especially, due to the inherent conflicts that are present in the operations of some companies.
Host: Mike Disabato; MSCI ESG Research
Guests: Mathew Lee, Namita Nair, and Rumi Mahmood; MSCI ESG Research
After energy prices surged, oil and gas companies reported record profits in 2022. We discuss where this profit bonanza will end up and whether any of it will help the energy industry transition away from fossil fuels.
Host: Mike Disabato, MSCI ESG Research
Guests: Antonios Panagiotopoulos, MSCI ESG Research
As drought is followed by flood, there is renewed talk of how gene-editing techniques can be used to shield our agricultural system against the ravages of climate change. Recently, seed companies have turned to the targeted genome modification of plants using methods like Clustered Regularly Interspaced Short Palindromic Repeats or CRISPR for short. We discuss what companies are involved in using CRISPR to make new gene-edited crops and what governments might be softening to their use. Then, we discussed the ruling by the EU that Meta’s ad practices were illegal under EU law.
Host: Mike Disabato, MSCI ESG Research
Guests: Cole Martin and Yoon Young Chung, MSCI ESG Research
As the biodiversity focused COP15 continues in Montreal, we discuss how investors and companies have begun to understand the risks caused by biodiversity loss – maybe the most important long-term environmental problem we face. But If biodiversity is so important, why has climate change been the favorite child in the ESG space? And why has it taken a bit longer for the investment community to examine biodiversity loss with the same rigor as climate change? We answer that and more!
Host: Mike Disabato, MSCI ESG Research
Guests: Arne Klug, MSCI ESG Research
An audio exploration of our latest annual trend report on the ESG trends that may shape the environment for investors and companies in the year ahead. We discuss new digital policies in the EU, EU and China maybe embracing GMOs, lab grown commodities like pineapple leather(!), new fund regulations, and more!
Host: Mike Disabato, MSCI ESG Research
Guests: The MSCI ESG Research Team
As COP27 in Sharm El-Sheikh winds down, we talk to Oliver Marchand about his impressions from the conference. While staving off the worst effects of climate change is definitely getting harder, we also find some reasons for hope. Then we review an updated rule that is looking to clamp down on methane emissions from oil and gas wells in the US. The document is 504 pages long, but we promise a briefer precis.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Oliver Marchand & Chris Cote, MSCI ESG Research
Glencore admitted to bribery in five African countries between 2011 and 2016. A £276 million payment ordered by a UK court highlights the financial risks of bribery. We take a look at the company’s broader ESG risks and how its operations create positive and negative externalities. And then, with COP27 in full swing, we walk through how climate change could affect the insurance industry.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Sam Block & Cody Dong, MSCI ESG Research
One well-worn critique of ESG investing is that some companies with a high rating aren’t actually making the world a better place. We break down this conflation of ESG impact with financial risk by looking at the different sides of J&J and Nestle.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Julia Giguere-Morello & Cole Martin, MSCI ESG Research
There’s much more to Tesla than electric vehicles. We tackle some apparent contradictions by looking at the company through four lenses: financial risk, environmental and social impact, climate risk and climate impact. And then, the rights of local communities prove to be a stumbling block for another Australian extractives company.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Yu Ishihara & Gabriela De La Serna, MSCI ESG Research
What is ESG for? Why aren’t ESG ratings correlated between ratings providers? Is greenwashing a problem in the industry? Is ESG a scam? This week we define, in our words, what ESG investing actually is, and address some of the criticisms against the industry.
Host: Mike Disabato, MSCI ESG Research
Guest: Meggin Thwing Eastman, MSCI ESG Research
What does a board do if an executive bites someone on the nose? What about if they use corporate resources to stalk and intimate a blogger? What if an allegation against an executive is more serious and criminal chargers are brought against them? We break down what a company’s board of directors can do in these dastardly situations of executive misconduct, and what sort of structures might be useful for the board to reach quickly and effectively to any problems. Then, in the aftermath of hurricane Ian, we discuss the risks companies face due to from more intense and frequent hurricanes.
Host: Mike Disabato, MSCI ESG Research
Guest: Harlan Tufford and Katie Towey, MSCI ESG Research
Farming fish and shrimp might be a much-needed solution to feed a growing population. But it’s not without risks – both regulators and investors will be rooting for more sustainable practices. And as the SEC considers mandatory climate reporting, we take a look at its recent letter to a manufacturer of adventure vehicles.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Mike Disabato and Helen Marlow, MSCI ESG Research
It is climate week in New York city! For this episode we bring you clips from our live panel called Infrastructure finance for the energy transition and climate adaptation. The show is curated by host, Mike Disabato, but the content is all from the live show. The panel was on how might the new U.S. climate law supercharge America’s energy transition; and what mechanism can help to close the gap globally between where capital goes and where countries need it?
Panelists:
- Elchin Mammadov, Vice President, ESG & Climate Industry Research, MSCI
- Bruce Schlein, Director, Head of ESG, OMERS
- Kim Carnahan, Senior Director for Net Zero Fuels, ENGIE Impact
- Valerie Hannah, Managing Director, Renewable Power & Transition, Brookfield Asset Management
- Moderator: Sue Reid, Climate Finance Advisor, Global Optimism
A labor dispute in the freight rail industry that brought the US to the brink of a potential economic catastrophe was averted this week, as unions and rail companies came to an agreement. One of the main reasons for the labor dispute was a newish system the rail industry was using that they claim maintained service while using fewer resources. We discussed why this new system is a paradigm for the current troubles many industries are having due to labor disputes, and what to watch when companies and labor have strife. Then, we discuss how institutional asset owners, some of the largest, most influential participants in the financial market, can take their portfolios toward net zero (this has more to do with you than you think).
The reading list for this episode is the Implementing Net-Zero: A Guide for Asset Owners found on MSCI.com: https://www.msci.com/www/research-report/implementing-net-zero-a-guide/03298099988
Host: Mike Disabato, MSCI ESG Research
Guests: Bentley Kaplan and Sylvain Vanston, MSCI ESG Research
Not many industries are as important as the automobile industry is to developed economies (some say it is the most important). At the moment, it is going through a deep structural change as it shifts toward electric vehicles and the industry works to lower its emissions. In this episode, we discuss what the biggest changes the auto industry has made so far in 2022 and where it may to go.
Host: Mike Disabato, MSCI ESG Research
Guest: Yu Ishihara, MSCI ESG Research
Water levels in key rivers are at historic lows which is creating havoc for our global economies. We use our climate risk models to assess which companies are most at risk and understand what the continued drought means for the smooth running of our economy and our society. Then, we assess the ESG components of the recently passed Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America act.
Host: Mike Disabato, MSCI ESG Research
Guests: Gillian Mollod & Siyu Liu, MSCI ESG Research
Mining for Lithium usually calls for large quantities of water or fossil fuel. But an intriguing venture in the Rhine Valley is looking to flip that idea on its head. And for the UK, an ambitious green building standard will see new homes a lot leaner, but a lot more comfortable too.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Kuldeep Yadav & Mark Bessoudo, MSCI ESG Research
A massive provision called the Inflation Reduction Act was passed in the US Senate on August 7 and is making its way to US President Biden. If signed into law, it hails as one of the largest climates, health care and tax bills ever passed in the US. We discussed some of the most impactful provisions in the climate and energy security provision of act through an ESG lens. We will discuss the changes to the tax code and healthcare in later episodes.
Host: Mike Disabato, MSCI ESG Research
Guest: Mathew Lee, MSCI ESG Research
The S of ESG has become more useful in understanding company performance in down times. When things are bad, companies that take care of their workers, for example, often perform better than their counterparts. We discuss why this might be by looking at growing job vacancies in some parts of the US economy. Then, we discuss what could happen to the food system if the rare “triple-dip” La Nina, an atmospheric and oceanic phenomenon, happens this winter.
Host: Mike Disabato; MSCI ESG Research
Guests: Liz Houston, Umar Ashfaq, Cole Martin; MSCI ESG Research
The G of ESG has always been the more accepted of the three in more traditional investment circles. Ric Marshall of MSCI ESG Research is one of the reasons for that. He is one of the pioneers of corporate governance analysis and is retiring this month. Ric is our special guest this episode. He takes us through the origins of his corporate governance research (surprise! it involves a co-op) and where he thinks corporate governance analysis will go next.
Host: Mike Disabato, MSCI ESG Research
Guest: Ric Marshall, MSCI ESG Research
By May 2022, a giddy 46% of MSCI ACWI constituents had controlling owners. We look at what this concentrated ownership means for minority shareholders. Then we look back at Shinzo Abe’s legacy as a reformer of Japan’s corporate governance practices.
Host: Bentley Kaplan; MSCI ESG Research
Guests: Ric Marshall, Jonathan Ponder, and Moeko Porter; MSCI ESG Research
The US Customs and Border Protection agency released operational guidance for importing companies on how to comply with the Uyghur Forced Labor Prevention Act (UFLPA), which was signed into law on December 23, 2021. The big ask for companies was for more supply chain transparency. We discussed what UFLPA means for the world’s economy and why supply chain transparency is still so difficult. Then we discussed the most recent ruling US Supreme Court ruling that limited the Environmental Protection Agency's ability to regulate greenhouse gas emissions from power plants.
Host: Mike Disabato; MSCI ESG Research
Guests: Miranda Carr, Liz Houston, and Mathew Lee; MSCI ESG Research
As biodiversity loss accelerates, companies and investors are under increasing pressure to act. But turning data into decisions is trickier than it seems. And after a bumpy ride for the EV start-up, ELMS files for bankruptcy and rings a cautionary governance bell.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Gillian Mollod and Yu Ishihara, MSCI ESG Research
Every fund manager with an ESG fund seems to be under routine but detailed examination by financial regulators into their use of “ESG” in said fund label or how they incorporate ESG in their investment process. We explore what this means for the industry and why it matters. Then, we discuss the current state of the wind energy industry, exploring the companies that are leading the chart for a cleaner energy world.
Host: Mike Disabato, MSCI ESG Research
Guests: Mathew Lee and Nelson Lee, MSCI ESG Research
REPLAY! This week the voluntary carbon markets integrity initiative or VCMI launched a consultation to assess companies use of carbon offset credits and how they impact progress towards their climate targets. So we decided to replay our carbon markets 101 episode. It is a discussion around companies that use carbon markets and carbon offsets to meet their plans to reduce their greenhouse gas emissions. Carbon markets, in the broadest sense, turn the power to pollute into a credit that can be bought and sold. They are marketed as one of the major pillars in combating climate change and are an important tool for investors to understand.
Host: Mike Disabato, MSCI ESG Research
Guest: Maximiliane Heidenblut, MSCI ESG Research
AGL Energy, Australia’s largest electricity generator and polluter, abandoned plans to spin-off its coal assets after tech billionaire Mike Cannon-Brookes bought shares to help block the move. It was a continuation of a trend we are seeing: the offloading or spinning off of pollutive assets away from the parent company. We discuss AGL’s attempt, this offloading trend, and where the company goes from here.
Related content:
ESG Trends: Private-Company Emissions Under Public Scrutiny
MSCI’s Net-Zero Hub
Host: Mike Disabato; MSCI ESG Research
Guests: Elchin Mammadov, Harlon Tufford; MSCI ESG Research
Abbott Laboratories is having to answer difficult questions after the F.D.A found its Michigan plant to be “egregiously unsanitary.” The plant closed after four infants became ill and two died after consuming Abbott’s baby formula that was made at the plant leading to a national formula shortage. We discussed what happened and why product quality and safety is such a key issue in ESG analysis. Then, we discussed the Australia election results which were heavily influenced by climate change concerns.
Host: Mike Disabato; MSCI ESG Research
Guests: Namita Nair, Elchin Mammadov, Antonios Panagiotopoulos; MSCI ESG Research
After a stellar 2021 for mining company Sibanye-Stillwater, its CEO is banking a hefty pay package. But as the company squares off against 25,000 striking mineworkers, we pick apart the arguments for and against bumper executive paydays.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Zanele Mtshali and Samuel Block; MSCI ESG Research
Carl Icahn, a billionaire investor and storied corporate raider, has mounted a proxy fight at McDonald’s Corp. to change how it sources it’s pork. At the moment, McDonald’s, and all other fast-food companies, source pork from farmers that use what are called gestation crates. These crates have caught the ire of Icahn and the US Humane Society for some time, and they decided to mount a public proxy fight to change the practice. We discuss what this means for McDonald’s and the future of pork producers. Then, we look at the first enforcement action ever made by the relatively new SEC Climate and ESG Task force against Vale over its misleading ESG disclosures on the safety of its tailings dams.
Host: Mike Disabato, MSCI ESG Research
Guests: Jonathan Ponder and Samuel Block; MSCI ESG Research
After a draft opinion leaked from the U.S. Supreme Court showed the possible reversal of the landmark abortion law called Roe v. Wade, a new spotlight has been put on companies that manufacture abortifacients (aka abortion pills). We give you a quick look into what those pills are used for (not just abortions) and the companies that manufacturer them. Then we explore what sovereign bonds can tell us about how climate change is going to affect governments.
Host: Mike Disabato; MSCI ESG Research
Guests: Bhaveer Shah and Namita Nair; MSCI ESG Research
For short sellers, ESG data offers new strategic considerations. But when it comes to reporting the ESG-related impacts associated with short positions, you’d be forgiven for scratching your head. We take a look at the differences between financial and double materiality and what key investors had to say about this brave, new world.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Rumi Mahmood and Miranda Carr; MSCI ESG Research
A spate of auditor resignations for real estate developers in China have prompted whispers of economic contagion. The real estate market in China is really important and if it were to collapse, then the world might go with it. We discuss what ESG has to do with the looming, potential crisis, and how the problems we are already seeing in the market could be fixed with better company governance processes.
Host: Mike Disabato, MSCI ESG Research
Guests:Yan Zhou, Sophia Chang, and Miranda Carr; MSCI ESG Research
This week we saw a landmark win for labor as Amazon workers on Staten Island voted to unionize. The decision and others like it at Starbucks and REI gives us a chance to explore unions from an ESG perspective. Then, we touch on some of the important findings in the recently published IPPC Climate Change 2022: Mitigation of Climate Change report.
IPCC Report: https://www.ipcc.ch/report/ar6/wg3/
Host: Mike Disabato, MSCI ESG Research
Guests: Liz Houston and Chris Cote, MSCI ESG Research
Researcher: Gabriela De La Serna
As Russia invaded Ukraine, endless briefing documents were thrust in front of company directors. Navigating supply chain disruptions, sanctions and a humanitarian crisis is not supposed to be easy. And as the war continues, investors will find that not all boards are equal. And war aside, Boeing’s board will be navigating a crisis of its own, following the fatal crash of a 737-800 in southern China.
Host: Bentley Kaplan, MSCI ESG Research
Guests: Harlan Tufford & Umar Ashfaq, MSCI ESG Research
Coal is a complex topic: it's the main factor driving up global energy-related carbon emissions, yet it is a cheap and stable fuel source millions rely on for their energy and livelihoods. So, why does it have such staying power? And why has 2022 seen so many planned coal expansion projects? We discuss such things in our first story. Then, we give you the MSCI ESG Research hot take on the new proposed requirement by the SEC that companies will need to reveal detailed information about their greenhouse gas emissions. This is a major development in how the SEC addressed climate disclosure in the financial markets.
Episode Reading List:
- Net Zero Tracker: https://www.msci.com/research-and-insights/net-zero-tracker?utm_medium=social&utm_term=ESG%2CNet-Zero&utm_content=100002979498471
- Global Coal Exit List: https://www.coalexit.org/
Host: Mike Disabato, MSCI ESG Research
Guests: Sylvain Vanston and Linda-Eling Lee, MSCI ESG Research
ESG MORAL CONUNDRUM: Can defense companies (which are also the weapons companies) make a positive contribution to ‘social sustainability’ and so should be consider social impact companies? I may not have a good answer but I go through the data so you can decide. Then, we discuss a Chinese ride sharing company that left Russia right before Putin invaded Ukraine because of market difficulties (i.e. not enough profit) and then decided to go back AFTER the Ukraine invasion. We discuss why.
Host: Mike Disabato; MCSI ESG Research
Guest: Bentley Kaplan; MSCI ESG Research
We begin this episode with an update on the invasion of Ukraine by Russia. Western companies have begun an exodus from Russia as sanctions and atrocities mount. Yet, some are deciding to stay. The decision behind why is ultimately one that can be explained by examining their board of directors. We do this, with a focus on one of company specifically: Danone. Then, we discuss the growing problem of child labor in cocoa harvesting. And the attempt by Nestlé to use money and enhanced mapping technology to combat its prevalence. It sounds bleak, but it is a great story about how technology is allowing for better transparency in our world's supply chain.
Host: Mike Disabato, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research
As a country and its people reel, we look at some of the early implications of the conflict in Ukraine. We’ll take you through Russia’s shifting ESG risk profile, the moral dilemma facing social media platforms and the implications for climate change.
Host: Bentley Kaplan
Guests: Bhaveer Shah, Andrew Young & Antonios Panagiotopoulos; MSCI ESG Research
As the Russian escalation in Ukraine continues, Germany has decided to suspend certification of the Nord Stream 2 Baltic Sea pipeline that would have doubled Russia’s natural gas export capacity to Germany. We discussed what this move means for the energy mix of Western Europe and what companies are exposed to the pipeline’s construction. Then, we discussed the equitable distribution of the COVID-19 vaccine: which company has distributed the most vaccines to lower income countries and which company has distributed the least, and why it matters.
Host Mike Disabato
Guests: Elchin Mammadov and Namita Nair; MSCI ESG Research
Tensions continue to rise between Russia and Ukraine. The crisis is complicated because of the dependence of the West on Russian natural gas. We discuss how that dependence plays out and what could happen to companies’ carbon targets if Russia cuts off its supply of natural gas. Then, we discuss the proliferation of online gambling in the US.
Host: Mike Disabato
Guests: Elchin Mammadov and SK Kim; MSCI ESG Research
As banks feel the heat over financed emissions, we look at current disclosures and the challenge of putting out credible numbers. Then we sift through recent and colorful electric vehicle start-ups that hit public markets with some SPAC-merger magic.
Host: Bentley Kaplan
Guests: Nigel Fletcher, Carrie Wang, Yu Ishihara; MSCI ESG Research
The EU has made a last minute change to its green bible, the EU Taxonomy: It proposed including natural gas as a sustainable transition fuel. The move would have notable effects on investors and companies. And would give natural gas a coveted green label by the EU. Then, a self-commissioned report by Rio Tinto revealed sexual assaults and culture of ‘systemic’ bullying at the Australian mining giant.
Host: Mike Disabato
Guests: Hanna Ogilvy, Elchin Mammadov, and Sam Block; MSCI ESG Research
A labor strike ends at Kroger after contract negotiations give the employees a wage increase. But Kroger is supposed to be a decent employer, so what is going on here? Is this all due to the great resignation or renegotiation or restructuring of labor caused by pandemic? Or is there something deeper? We answer all these (floating) questions. Then, we discuss how a new EU proposal to ensure that people working through digital labor platforms can enjoy the labor rights and social benefits they are entitled to is linked to the Kroger strike.
Host: Mike Disabato
Guests: Cole Martin and Andrew Young from MSCI ESG Research
China’s toymakers are staring down rising sea levels. And that’s not just bad news for Santa – a sizable portion of global supply chains are anchored in the manufacturing powerhouses of Guangdong, Shanghai and Fujian.
This week we provide you with a carbon markets 101, and a discussion around companies that use carbon markets and carbon offsets to meet their plans to reduce their greenhouse gas emissions. Carbon markets, in the broadest sense, turn the power to pollute into a credit that can be bought and sold. They are marketed as one of the major pillars in combating climate change and are an important tool for investors to understand.
Antibiotic resistance is getting more worrisome. It's possible by 2050, antibiotic resistant super bugs could kill three times as many people could a year as during the worst parts of the COVID-19 pandemic . But there may be hope in the development of novel antibiotics. We discuss how this is related to the development of the COVID-19 vaccine. Then we finally put ESG ratings in their rightful place and tell you what they are REALLY used for.
The antibiotic story references research from our 2022 ESG Trends which can be viewed here: https://www.msci.com/research/2022-esg-trends-to-watch
The ESG ratings portion references an interactive chart which can be fond here: https://www.msci.com/research/2022-esg-trends-to-watch/esg-ratings-in-rightful-place
Host: Mike Disabato
Guests: Julia Giguere-Morello, ESG Research; Laura Nishikawa, ESG Research
Everyone wants to get into mining these days. The extractive industries have seen a flurry of interest as the rush to decarbonize our economies sparks a race to control the metals those low-carbon technologies need to work. We discuss the ESG paradox this creates: on the one hand, mining is a fundamentally challenging sector when it comes to ESG and on the other hand for renewable energy to be a feasible solution to fossil fuels, we need batteries. Then we discuss a sustainability bond issued by Teva Pharmaceuticals with some of its provisions tied to both better access to healthcare and lower greenhouse gas emissions.
Host: Mike Disabato
Guests: Samuel Block, MSCI ESG Research; Namita Nair, MSCI ESG Research
Jack Dorsey, the eccentric and visionary co-founder of Twitter, announced he was stepping down on Monday. Parag Agrawal, the chief technology officer, will replace him as CEO. We discuss what this move means for the governance of Twitter, for Block (previously called Square), and for the tech world in general. It's a good old governance episode!
COP26 dropped an unstoppable wave of headlines. As delegates catch their breath for the hard work that starts in the aftermath, we take a look back at what happened in Glasgow. For one, it looks like big change lies ahead, especially for energy producers. But a recent surge in the prices of coal, oil, and gas may dampen the spirits of climate investors. Should it?
Host: Bentley Kaplan; Guests: Simone Ruiz-Vergote, MSCI ESG Research; Elchin Mammadov, MSCI ESG Research.
A USD 1 trillion deal is scheduled to be signed into law by US President Biden on Monday, November 12. The deal, in the White House’s words, is imperative for the US to meet its commitment to reduce U.S. emissions by 50-52% from 2005 levels in 2030, create a 100% carbon pollution-free power sector by 2035, and achieve a net-zero economy by 2050. It allocates funds toward updating the US transportation system, its energy infrastructure, its climate resiliency, and its water system. We discussed how these plans move from the political stratosphere to the more habitable land of economic stimulus.
Host: Mike Disabato; Guests: Bentley Kaplan, MSCI ESG Research; Yu Ishihara, MSCI ESG Research; Mathew Lee, MSCI ESG Research; Chris Cote, MSCI ESG Research; Gillian Mollod, MSCI ESG Research.
We talk about two of the most consequential agreements made at COP26 this week. The first is the deforestation pledge signed by around 100 world leaders. And the second is an agreement by 46 countries to halt the growth of coal in our energy sector. Each is a step among many toward a more sustainable future, but each, as with many agreements, has its pitfalls.
Ahead of the UN COP26 summit, many governments have revisited their Nationally Determined Contribution or NDC pledges to reduce national emissions between now and 2030. We developed a map visualizes the change between each government’s revised pledge and its previous commitment, based on estimated further reductions in 2030 greenhouse gas emissions. We decided to talk about that map today. And Hertz bought a lot of cars from Tesla.
Some hedge funds are saying they can net their greenhouse gas emissions exposure by shorting companies, a practice that bets on a company's collapse. We discuss what that strategy could mean for transparency in the ESG marketplace. Then, we look into the efficacy of Facebook's oversight board, a trust set up by the company to act as its judiciary.
As international delegates thrash out new targets to save biodiversity, the food industry could quickly become a pariah. And for Taiwan’s all‐important semiconductor manufacturers, water shortages are raising uncomfortable questions.
This week we answer questions about cryptocurrency in a tolerable manner: What are the key environmental, social, and governance (ESG) risks from cryptocurrency exposure? What should investors consider when assessing the ESG practices of cryptocurrency-exposed companies? What are the opportunities for engagement relevant to cryptocurrency?
It is episode 2 of 2 of the climatepalooza series. This week we discuss two huge sectors, banking and technology, with more sway in the carbon reduction of our world than you might think. For banking, we take a broad look at the sector. For technology, we focus on two of the industries behemoths.
It is Climate Week this week in New York city. So, we decided to throw a climatepalooza for you all by examining the climate plans of three companies in the most the most pollutive industries. In this episode, we give you a roadmap for the climate plans that have been coming out this week and tell you what to pay attention to as you sort through a company's emissions reduction plan.
Giving shareholders a vote on a company's climate strategy is trickier than it seems. And while Louisiana reels after hurricane Ida, we look at what investors can learn.
Greenpeace and Deutsche Umwelthilfe (DUH ) think VW, along with German rivals Daimler and BMW, are not decarbonizing their car fleets fast enough. They think it so much they are taking the companies to court. In response, the auto makers have said they are going as fast as possible and any faster would be impossible. We discuss whether these environmental non ‐profits are making a solid case. And China has put into place more stringent carbon reduction goals. We have a recent report out discussing those goals and where there might be gaps. So of course, we gotta talk about it.
China tightened its already stringent rules on gaming this week. Chinese children under the age of 18 can now only play video games for one hour a day and only on Friday, Saturday, and Sunday and holidays. We discussed what this means for video game companies and the future of gaming in the region. At the end of the episode, corporate governance guru Ric Marshall joined us to do a fire round on what happened in the world of corporate governance this week.
A low carbon alternative to maritime shipping is coming to the market. The largest shipping company in the world, Maersk, has ordered eight vessels propelled by cleanly made methanol instead of an oil-based fuel. But their shipping costs will increase by 15%. So who is going to pay for that? Then, the German government adopted a new gender diversity quota that will require certain listed companies to have at least one woman on their management board starting in 2022. But will it work? Listen to find out.
The largest mining company in the world, BHP Group, has made three massive moves this week. First, it said it would sell its oil and gas operations to oil and gas company Woodside Petroleum in exchange for shares that it will distribute to its own investors. Second, it approved a 5.7 billion USD investment to build a very large new potash fertilizer mine in Canada called the Jansen potash project. And third, it will collapse it’s dual listing across London and Australia and focus only on its Australia listing. We discuss the first two moves and what they mean for the global fight to reduce carbon.
The IPCC's newest climate science has signaled a code red for humanity. As the specter of physical climate risk looms large, we look at how railways will need to adapt and how investors can think about the challenge. Then we break down the decision of the South Korean government to grant early parole to Samsung's de facto leader, Lee Jae–yong.
Some companies are mandating their employees be vaccinated if they want to continue working at the company. The idea sort of seems like a mandatory health and safety procedure, albeit one with a bit more controversy surrounding it than others. Still, the companies that have a fully vaccinated workforce may be in a better place come winter than those without. We discuss how vaccine mandates are similar to the proactive health and safety policies implemented at companies in more traditionally dangerous industries. Then we ask whether Walmart has become a social impact company with its new relatively low cost insulin product offered to uninsured Americans.
In a sweeping overhaul of its private education sector, China issued new regulations that requires the USD 100 billion industry to register as a non‐profit. The move threatened to wipe out billions of dollars of market capital for any publicly listed Chinese education company and ignited a debate around profits, education, and private capital. We discuss what the move means from a local standpoint, a market standpoint, and from an impact investor standpoint. Then we discuss the ongoing sexual harassment controversy at Activision Blizzard that led to thousands of employees walking out of their jobs in protest this week.
In the world of climate mitigative energy sources, natural gas lives in an uneasy balance. It is viewed by some as a bridge from heavy polluting fossil fuels to lower‐emission sources, while others see it as a much more pollutive source than advertised. This is because of the issue of flaring, venting, and fugitive methane emissions along the natural gas supply chain. We discuss the new regulations that are coming to prevent methane emissions that are likely to impact oil and gas companies, and the attempts by some companies to make carbon neutral natural gas sources. Then we discuss the two devastating floods in Germany and China, and what it means for our world’s critical infrastructure.
This week we bring you a special episode of ESG now: The speech Linda‐Eling Lee gave at the International Conference on Climate in Venice, Italy held by the G20 summit. In her speech Linda focused on the dwindling pool of companies that are able to meet the goals set in the Paris climate agreement and what should be done to address that in the future.
As a vicious heatwave hovers over the US and Canada, we get into the dirty details of oil pipelines and the intersection between climate change and community and biodiversity impacts. And in a world of growing inequality, we take a look at Ally Bank’s decision to permanently scrap overdraft fees
The APAC region is one of the richest in terms of ESG opportunities, such as renewables and electric vehicles, yet also one of the highest risk areas, with pollution and supply chain risk in abundance. The good news? Some of the highest risk markets in APAC have seen some of the biggest improvement in ESG scores in the past three years. We talk about what this means. And then we discuss what would happen to global emissions if everyone in the world drove electric vehicles for a year.
After nearly a decade, the SEC has begun to update the reporting requirements for companies on climate change. But before they can do that, they need to hear what the public has to say. In March 2021 the SEC sent out a 15‐question consultation that asked investors, data providers, companies, academia, and others what the most appropriate climate change disclosures would be. Comments were due this week, and we discuss what we wrote to the SEC and what we think is the best way forward. We also discuss the trouble that is brewing at Toshiba after a report was made public that said the company worked with the Japanese government to suppress shareholder votes. As its board chair refuses to step down and the Japanese government remains intransigent, we ask what is next for Toshiba and corporate Japan?
Biodiversity has finally become mainstreamed, and the world is better understanding what its destruction means for our ongoing concern as a species. Many industries play a significant role in global biodiversity loss, and the mining industry is one of the big ones. We look at how mining is impacting biodiversity and where mining is impacting biodiversity. Then we provide you with another proxy season update with the bombshell resolution at HSBC that commits the bank to phasing out coal-fired power and thermal coal mining financing by 2040 that passed at 99%. And that makes it legally binding.
After the murder of George Floyd, protest and unrest rocked the world as people gathered to express outrage at systemic inequality. In the corporate world, many companies made big promises in the name of advancing racial equality in the workplace. A year later, we revisit those promises and see if there have been any advances in the disclosure of workplace racial and ethnic diversity. And discuss why better transparency about inequality in the workplace is so important.
There has been a paradigm shift in the oil industry. An activist investor campaigns against Exxon's preparedness for climate change and wins two board seats because of it; A Dutch court orders Royal Dutch Shell to cut its emissions; and shareholders for Chevron and ConocoPhillips vote to have to the companies report on their scope 3 emissions. We discuss what this all means for the future of the energy industry.
A military coup in Myanmar has left Telenor with a complex stakeholder balancing act. Meanwhile Eskom looks for its deus ex machina in the form of five floating powerstations.
More regulations have been enacted to try and stop the use of modern slavery and coerced labor in the global supply chains. We discuss what companies are affected by these regulations and what they say about companies' responsibility to prevent its use in their supply chains. And then we discuss how mining needed for renewable energy is encroaching on Native American Nations.
This week’s episode is a special five-person roundtable on this year’s proxy season! It’s a long one but full of good knowledge about the current proxy season highlights and emerging trends. We go through how companies are reacting to the current environmental and social issues, and how investors are trying to keep them accountable.
As a vicious second wave hits India, we talk to Ravi Sankar about the conditions on the ground in Mumbai and Pune and the resilience of our colleagues based there. Then we rifle through the contents of the US' recent climate pledge and confront the devil lurking in the details of carbon budgets
Joined by the CECP's Brian Tomlinson and our own Sam Sue Ping, we look at how companies are taking a firmer step onto the ESG stage. Executives and directors are starting to talk a serious game. But can they do it where it matters ‐ in the haloed earnings call? For more, check out Brian’s paper here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3607921
Earth Day was this Thursday and in its spirit, companies and countries have announced net‐zero plans as a climate summit began in the US. We explore a new tool we are using to track the progress the global economy is making toward a low‐carbon future. An important player in lowering our collective carbon emissions is China. And we explore what China is trying to do to limit its carbon footprint.
Amazon workers have voted down a union drive at the company's Alabama warehouse. The victory was decisive, and it the loss signals a change in the corporate labor market. We discuss what that paradigm shift is, as well as some good old discussion about Amazon as an economic force. Then we discuss the move by the French government to try and ban short‐haul flights in order to cut the country's carbon footprint.
The COVID‐19 pandemic has overshadowed the opioid epidemic in the US, but the opioid crisis in the has grown during the pandemic creating more problems for communities and companies that have been blamed for the crisis. During the 2021 proxy season, companies are disclosing more opioid related liabilities to shareholders causing dissent in some cases. We discuss both the opioid epidemic and these shareholder reactions. Then, as a new controversial voting rights law is passed in the US state of Georgia, we discuss why some companies wade into politics and others stay away.
A ship blocked the entire Suez Canal! To honor that, we discuss the ESG of marine shipping, the industry that handles 90% of the world's shipping. And then we discuss how billion‐dollar leverage bets by a family investment office called Archegos exposed a major systemic risk in the banking industry.
Industries like steel and cement are some of the most important sectors and largest emitters of carbon dioxide. This is due both to the molecular makeup of their products and a possible lack of effort in finding viable low-carbon solutions. In this episode we discuss if hydrogen, the molecule that helps power the sun, can help lower our Industrial emissions.
Most of the largest online education companies are based in China. As the industry gets larger, so too does pushes for regulation and concern that companies are spending more on advertising than they are on educating their students. We discuss what this might mean for the industry’s future. And then we discuss the push by Yum! Brands to eliminate antibiotics from its massive meat supply chain.
New research about sustained board gender diversity suggests that companies with more people that identify as women demonstrated a stronger track record on reducing carbon emission than their sector peers. We discuss this finding and what it means for the future of board gender diversity. Then we hear from five primary care givers about how they have fared during the pandemic.
How a company sets CEO pay is an important function of its board of directors. When its effective, pay can align a CEOs interests with the strategic goals of the companies it runs. When its ineffective, CEOs can take home millions while their company flounders and fails. In this episode, we discussed new research on how effective CEO pay has been between the years of 2006 to 2020. And then we discuss whether oil rigs are safer now than I the past.
As Schneider Electric and LafargeHolcim issue their first sustainability‐linked bonds, we ask how to tell apart a marketing exercise from a genuine effort to improve. And for Amazon, the transition of founder and CEO, Jeff Bezos into the role of executive chair may have kicked up more questions than answers.
As Texas continues to suffer from power outages caused by a rare cold front, we discuss how energy grid resiliency plays an important role in preparing for the effects of climate change. And then we discuss the feasibility of the announcement by auto manufacturer GM that it will only sell electric vehicles by 2035.
Exxon has pledged to step up its carbon capture efforts, but climate‐focused investors may be keeping their champagne on ice. And although the COVID‐19 pandemic may have spurred a government veto, we take a look at why this is not necessarily a new phenomenon in the murky intersection between shareholder rights and national interests.
Japan announced that they would be recommissioning their nuclear power plants in order to meet their 2050 net zero goals. We discuss what the ESG implications of this decision are and how nuclear is viewed in the sustainable investment world. Then we discuss why Facebook is so pissed at Apple.
The CEO of BlackRock, Larry Fink, has issued another public letter to companies and CEOs about climate change. Last year it was about getting companies to disclose climate‐related risks in line with the TCFD's recommendations. And this year, Fink is pushing companies to set net zero emissions targets by 2050 at the latest. We discuss how both the TCFD recommendations have fared and what we think about net zero emissions targets. Then we discuss how market concentration has changed due to the global pandemic. If you would like to see the research that accompanies the market concentration discussion, please click this link: https://www.msci.com/insights-gallery/industry-concentration-in-the-us.
Britain's split from the European Union has just taken full effect and there is already trouble in the airline industry. In this episode, we discuss how airlines are dealing with foreign ownership rules in a post‐Brexit era and how one airline (Ryanair) decided it had to disenfranchise its shareholders in order to comply with the rules. Then we discussed the ruling by the Office of The Comptroller of the Currency that prohibits banks from denying lending to oil, gun companies.
COVID‐19 vaccines have been administrated to select groups in certain countries. But we need to vaccinate a large part of the world in order to emerge from the shadow of the pandemic. In this episode we discuss how low‐income countries are being left behind in the rush to vaccinate. And then, we discuss the lackluster auction by the Trump administration for oil and gas leases in the Arctic refuge.
As 2020 comes to a skidding halt, we throw a glittery holiday lens over innovative and hopeful developments in energy and food. While 2021 may see restaurant giants trying to scoop up market share, a shifting social fabric will make things trickier. And yes, Santa's emissions make for sober reading, but offer a sliver of hope too.
Special guest, Tim McCourt from CME Group joins us this week to discuss their launch of the first ever water futures based on the Nasdaq Veles California Water Index. We discuss how the water future might affect water efficiency and water scarcity. And then we discuss the new proposal by the Nasdaq stock exchange to adopt new listing rules related to board diversity and disclosure.
We talk about an interactive chart in this episode, the link to it is here: https://www.msci.com/our-solutions/esg-investing/2021-esg-trends-to-watch/climate-reality-bites-paris. But the episode is not about an interactive chart. It is about how two similar oil and gas companies are facing two different revolts ‐ one internal and one external ‐ caused by the same problems: climate change and carbon emissions.
Pfizer‐BioNTech, Moderna and Oxford‐Astra Zeneca are all looking to roll out COVID‐19 vaccines after successful phase 3 trials. Amid the hope of locked down populations, we look at the ESG risks of what’s coming next. Meanwhile, although the pandemic has created an e-commerce boom for South Korea’s logistics companies, delivery workers are bearing the burden of competition. And finally, we walk through some of the longer-term forces moulding governance practices at banks.
We downgraded Facebook from a BBB to a B; but why? Well, it has to do with a little something called governance, and the fact that we revamped how we assess governance in our ESG ratings model. Today, we discuss the Facebook downgrade and the changes to how we assess corporate governance in our ESG ratings model.
President‐elect Joe Biden has indicated that, early in his administration, he will sign executive orders focused on combating climate change: He will rejoin the Paris Agreement, reverse the 2017 executive order by the Trump administration that called on federal agencies to dismantle their climate policies, instruct agencies to develop new methane limits for oil and gas wells, reinstate and strengthen fuel economy standards for automobiles, and to tighten efficiency standards for buildings. We discuss what all these actions mean for the ESG world.
WAs we all stress over the US election, it is a good time to reflect on what makes an ideal leader and what makes a tyrannical one. In this episode, special guest Matt Moscardi joins us to explore how board interconnectivity (also called interlocking) has a major influence on whether a board practices proper corporate governance.
We held a (virtual) roundtable in September with companies to discuss racial diversity in the workplace. In this episode, we examine the details of the meeting. And then we discuss the antitrust suit against Google brought by the Department of Justice.
Join us for our Halloween special as we hunt down zombie directors, test a shareholder's arsenal of zombie deterrents and map out some handy escape routes in the event of a corporate zombie apocalypse.
As millions of Americans continue to be unemployed due to the coronavirus pandemic, the insurance industry is scrambling to figure out how to deal with the loss of its customer base. We discuss what is unique about the American health care system and how insurance is changing due to COVID‐19. And then we discuss the largest social bond ever issued by the EU which will provide loans to members states trying to keep workers in jobs during the pandemic.
Due to the COVID‐19 pandemic, there has been more single-used plastic purchased in 2020 than ever before. We discuss what this and other increases in waste are doing to our ecology and economy. And then we discuss a Financial Times article that claims that asset managers are ready to push companies to disclose more racial diversity data during next year's proxy season.
On September 24, it was revealed that the biggest provider of shareholder services in Japan had miscounted investor votes at the annual meetings of nearly 1,000 listed companies. We discuss what this means for Japanese investors and why it is not just a problem for Japan. And then we talk about why the SEC recommended civil action be taken against General Electric for allegedly violating securities law.
A new organization was created in July to address the financial industry's role in biodiversity destruction. Called the Task Force on Nature-related Financial Disclosures, it hopes to do what its predecessor the TCFD did for carbon disclosures. But will it be successful? And then we discussed Ant Group's IPO, the likely largest ever IPO to hit the market.
For climate week, we looked at the climate plans of four tech companies: Facebook, Alphabet, Apple, and Microsoft. And only one of them is committed to actually removing carbon from the atmosphere (which is crucial for combating climate change). And then we discussed the recent investigation that alleges five global banks have knowingly laundered USD 2 trillion for drug cartels, corrupt regimes, arms traffickers and other international criminals.
As climate week kicks off in New York, we break down the basics of climate scenario analysis using the example of MSCI’s Climate Value at Risk model. Translating future climate impacts into direct financial consequences has been a key development in outlining the shape of climate risks for companies and their stakeholders.
There have been a record amount of natural disasters in 2020 and there are certain companies that position themselves as the solution for recovery after a disaster. We discuss how those companies look and how they get the contracts to help out a community. And then we discuss why Apple decided not to respond to a UK inquiry on its electronic waste.
A polarized election and social unrest have raised the stakes on content integrity for Facebook, Google and friends. Meanwhile the pandemic’s long‐term consequences may be a boon for gender diversity in Japan’s workforces, but a blow to cruise liners that are going nowhere slowly.
September brings a change in season as companies navigate shifting ESG risks. Bonus cuts may not be enough for Rio Tinto to win back community trust, Microsoft could be biting off more user data than it can chew and more sophisticated risk maps highlight gaps in asset location data.
We laid our cards on the table and predicted five trends that would reshape ESG investing in January 2020. But then fate played its COVID‐19 wildcard. In this episode, we take a look at how much things have changed, how much they haven't and how human capital risks may emerge in a post‐pandemic world.
First, we discuss the ruling by a California judge that Uber and Lyft must now designate its drivers as employees, striking a blow to both Uber and Lyft's business models and the gig‐economy. And then we discuss why McDonald's is trying to get 40 million USD back from its former CEO.
As the world cautiously moves back indoors, travels on planes and subways, many have been promoting the use of HVAC systems that can dilute the viral particles, like those of COVID‐19, as their answer to safety concerns. But what does this mean for the building product companies that build and sell these ventilators? And then we discuss the growth of social ESG bonds as a way to restart our economy.
A country's ESG risk is made up of many factors: Protests and civil unrest, public health crises, labor strikes, natural disasters, and environmental policy and litigation against the government. In this episode we talk about three of them ‐ environmental policy and litigations, the public health crises caused by the pandemic, and natural disasters. And then we discuss why Nike is unique in its relationship with workplace diversity.
When the pandemic was in full force, 12 airlines were bailed out by their respective governments. But there were stipulations to accepting these bailouts, and most of those stipulations were of the ESG category. And then we discussed the weird ways directors of companies are on the hook when the company gets sanctioned by a government administration.
Does rewarding CEOs for things like more diversity, better climate policy, and better health and safety actually work? Or are investors just giving rich people more money for not really doing much? And then we discuss how important immigration is for semiconductor (aka everything digital) development.
A ruling by a US judge has put the entire oil and gas pipeline industry at risk in the US, and a lot of it is because companies have terrible community relations. And then, we discuss the price tag on Remdesivir, the first drug shown to be effective against the coronavirus ‐ and how drug prices affect company incentives.
There are three types of emissions ‐ scope 1, 2, and 3; and while scope 3 are the hardest to measure, they can teach investors the most about a company's carbon footprint and climate change; and then we discuss some of the unexpected joiners to the Stop The Hate Campaign against Facebook.
This Thursday, one of the hottest companies in Europe, Wirecard, filed for insolvency as its former CEO was arrested on suspicion of false accounting and market manipulation. It is one of the largest cases of possible fraud at a single company since Enron. But how could such a thing happen at a company with not one, but two oversight boards? And what does this mean for how we assess companies going forward? Then we have a history lesson on past scandals by a man who has seen some of the biggest.
The spilling of 21,000 tons of diesel in Siberia in late May, 2020 echoes the Exxon Valdez disaster from more than 30 years ago. But the case of Norilsk Nickel also highlights how today's responsible investors find themselves in a new landscape as climate change accelerates, with better data but more vexing conundrums.
This episode explores the complexity of collecting and using companies' racial diversity data, and then we discuss how at risk construction companies are as economies start to open and COVID‐19 continues to spread.
When a company hands over the reins to an external manager, it shifts the dynamic between shareholder, board and management. And although that may offer potential benefits, there is plenty to draw the attention of a wily governance analyst or a wary investor.
This episode begins with our head of ESG research, Linda‐Eling Lee discussing the global protests surging across the US and the world; then we discuss the decision by Facebook management to not affix warnings to US President Trump's tweets after its industry peer, Twitter, decides to do so; and then we talk about one utility company that is successfully transitioning to a carbon neutral future.
Climate change has increased the frequency and severity of flooding, exposing companies with operations that abut or lay within the US Federal Emergency Management Area designated flood zones to possible damage. The breaching of two dams in Central Michigan this month resulted in historic flooding that mixed with Dow's chemical containment ponds and may have stirred up toxic sediment at a downstream superfund site where Dow is the responsible party. But could investors or the company have guessed the disaster would occur ?
There are some promising COVID‐19 vaccines in early human trails, but we have some questions if they are successful: Who will own the patent? Who will distribute them? Who will be responsible if something goes wrong? And then we discuss the recent proxy battle at JPMorgan that ended with some interesting wins for climate activists.
Have COVID, will travel: As regions begin to tentatively reopen, airport employees find themselves on the frontline of possibly sick passengers, we discuss how the type of airport and what plans were in place before the pandemic are affecting airport security; then we discuss the ESG merits of biofuel in light of the industry's recent bailout request; finally, we look at how the EU Taxonomy will affect investors that have a sustainable mandate.
With COVID‐19 hitting the pause button on the global economy, many are wondering if this is the start of the end for the oil and gas industry. We break down the basics, look at the different ways companies are planning for the future and discuss how investors can make sense of the risks involved.
Like a cleaver and a scalpel, COVID‐19 is slicing through pre‐existing ESG vulnerabilities in the meat‐packing and medical tourism industries. Palm oil certifications make for sober reading as the New York Declaration on Forests nears its first milestone and India's strict lockdown is inspiring innovations both big and small.
At MSCI ESG Research, we spend a lot of time collecting information about workplace safety, but as economies start to reopen, we might need to pay attention to how close everyone is to each other while working. And then we discuss why the safety upgrades in green buildings might be the safest option for people during the COVID‐19 pandemic; then we continue our series where we ask our colleagues around the world what its like to live in their region during the coronavirus pandemic.
In the last recession, Banks were the villains but now they are the conduit through which governments are providing credit lifelines, we discussed who will survive. Then we discussed the decision by the German government to allow Bayer to call a virtual Annual General Meeting aka the annual shareholder gathering, which might mean an erosion of shareholder rights. And lastly we heard how the Government of Japan is dealing with the COVID pandemic.
Skeptics and converts alike are watching how ESG performs under the pressure of COVID‐19. We review the evolution of ESG data in index construction and possible ways to assess its performance through a pandemic.
The first COVID‐19 deaths were recorded in a privately run prison this week, we discuss what this means for the future of the industry and what it means for investors in companies with essential but precarious workforces; then we begin our new series on how investors will be affected by different regions' response to COVID; afterward Linda‐Eling Lee, our head of ESG Research, joins us to discuss "The Investor Statement on Coronavirus Response." .
During a global pandemic, carbon emissions decrease along with the economy and everything else, we discuss if it is a sustained decline or a respite; then we have a short take on what drugs are being pushed forward to fight COVID‐19 and what happens when drugs are used for purposes different than the drug marker's original intention.
In this long‐form episode of ESG Now, we looked at sustainable real estate ‐ how the greening of the property portfolio will move from a nice‐to‐have reputation‐booster to an imperative in the face of a looming "brown discount" if real estate investors don't kick start their journey to zero carbon.
Companies are making drastic moves in an effort to survive as the economy comes to a grinding halt ‐ the market gets new rules, people get laid off, people get put at risk for a job, and alcohol companies save the day. We answer how you can use ESG to understand these complicated times.
Private companies are issuing coronavirus bonds in China in hopes to use the proceeds to fight the spread of the virus. But wait, it's only 10% of the bond's proceeds? And what is a coronavirus bond anyway? Then we discuss what happens when a director on a company board becomes incapacitated and why that is now a serious problem for many companies because of the spread of COVID.
Airlines grit their teeth for now, but when the fog clears, labor practices may help some rise up faster than others. And for food retail and restaurant companies, adaptability is the name of the game as customers hunker down.
What the novel coronavirus 2019 can tell us about workforces around the world and the risks unheeded by some companies. And then we discuss how the price wars are different than ever before. This week, we talk to the experts about catastrophe and future risks.
The market is freaking out about the coronavirus because it is everywhere but Antarctica, and now everyday medicine is becoming scarce because of supply chain disruptions. But what is a drug supply chain? And why do patients and investors need to worry about vitamin and antibiotic shortages due to disruptions in India and China? We talk to the experts about supply chains and disasters.
The Camp Fire of 2018 was one of the worst wildfires in California's history. After it was found to be caused through negligence on the part of utility giant Pacific Gas and Electric, the victims sued the company and won compensation. But then PG&E did something off and made the victims part owners of the beleaguered company. We ask : Does this help the victims, the company, or the market? Then we have two hot takes on an organization started by an ex‐facebooker that tries to hold companies accountable for climate change and Boeing switches up its board.
BP announced it would work toward a carbon‐neutral future, but that would mean it has to grown its revenue from renewables at speeds seen only by alphabet, which is difficult because renewables aren't the same money makers as fossil fuels, so oil and gas might have to start moving into new businesses; And Japan announces it will build 22 new coal plants in the next five years which is odd because everyone else is moving away from coal.
As the 2019 Novel Coronavirus spreads with worrying speed, we debate the applicability of ESG when it comes to discussing infectious disease and short‐term pandemics; and after the EU watchdog says ESG rating firms allow companies to be greenwashed, we discuss what it even means for a company to be considered "green ".
Companies are finding they can now be guilty by association and attract the ire of stakeholders for something as simple as a railway. Siemens found this out after it invested a relatively small amount in a signaling system for a railway that connected a coal mine in Australia. Many of Siemens' stakeholders descended, and it got so bad that both the CEO and Chairman of the company had to weigh in and it did not go very well. This week we discuss what happens when a company decides to invest even a small amount in a controversial project.
Amazon employees publicly shamed the company over its Amazon Web Services' connection with oil and gas companies and US federal agencies. But how does a web service company work with an oil and gas company? And does this mean Jeff Bezos won't be able to keep his pledge with the Business Roundtable?
ConocoPhillips partnered with Aboriginal groups in Australia to implement a carbon offset program. It is innovative and considers more stakeholders than just shareholders, but there is debate around the effectiveness of carbon offsets. And heavy carbon emitters that rely on carbon offsets to cut their emissions might be setting themselves and their stakeholders up for failure.
This week we discuss The World Economic Forum's finding that, for the first time in its 15-year history, the climate crisis fills the top 5 risks global leader believe our world will face in the coming decade, and then Siyu Liu and Andrew Young explain how the new California Consumer Privacy Act will change how tech companies can collect and monopolize our personal data.
This week we discuss how insurance companies address the physical risks and business risks caused by climate disasters such as the wildfires in Australia, then Andrew Young joins us to give his hot 2020 take on how social media will drop the ball during the US election year.
This week we discuss our new report on the progress companies have made toward gender diversity after Intel decides to release all its pay data to the public, and Ric Marshall joins us to discuss what happens we an oligopoly fails.
This week we discuss how automakers in the EU are under pressure to lower emissions while European customers continue to buy more and more SUVs, and Velina Karadzhova and Ric Marshall join us to discuss energy power Drax's net ‐negative 10 year carbon emissions plan (9:39) and Exxon's victory over the New York state attorney (12:24).
From smart watches to smart TVs and connected homes, today's hackers are increasingly spoilt for choice. For the healthcare sector, hacking pacemakers isn't just the stuff of TV fantasy (4:07). Automakers may have traded the upsides of safety and convenience for more hackable cars (9:23). But it's in telecoms that the true shape of hacking risks emerge, not in devices, but in the data they're pumping through bigger, faster data highways (14:19), all on the record.
Two stories this week with ESG glasses: Temporary, part‐time, contracted out, or contingent work arrangements are creating risks for investors across the entire economy as companies face liabilities for a workforce they don't want to claim (0:53). And then Ric Marshall and Umar Ashfaq joins us to discuss the founders of Google stepping down (12:27) and a report by an insurance industry group on coal's uninsurability (14:15), all through an ESG lens.
Two stories this week with ESG glasses: Antibiotic resistance ‐ the ability of germs to defeat the drugs designed to kill them ‐ is one of the greatest public health challenges of our time; but as the crisis grows what will happen to the companies that produce antibiotics (0:54)? And then Mario Lopez‐Alcala tells us which companies are slowing the transition to a deforestation free supply chain in South America (10:17), all through an ESG lens.
Two stories this week with ESG glasses: SoftBank decided all the wild and crazy founders its Vision Fund is investing in need some rules of operation (0:37), and then Siyu Liu warns us about all the data streaming‐companies must now protect (16:07), all through an ESG lens.
Two stories this week with ESG glasses: Ken Bertsch, the executive director of Council of Institutional Investors and an all‐knowing proxy god joins Ric Marshall and Mike Disabato to discuss the new rule by the SEC to limit shareholder engagement (0:37), and then we get two hot takes by our analysts on Boeing and Saudi Aramco (12:23), all through an ESG lens.
Investors have witnessed an exodus from the private prison industry but what is the core function of a private prison ‐ is it to help prisoners? Is it to help the government? Or is it to help investors? In act 1, we look at how the growth of the 80s helped build the prisons of the 2000s (2:55). In act 2, we discuss how private prisons became interwoven into our society. In act 3, we discuss the issue of incentives for private prison operators and what friction is caused by their misalignment (9:42). In act 4, the final act, we discuss the broader implications for investors that invest in private sector companies that provide a public service (28:33), all on record.
Two stories this week with ESG glasses: The Attorney General of New York alleges that Exxon first calculated the risks posed by climate change but then freaked out and suppressed the data, an accusation that might change how companies disclosure their data on climate risks far into the future (0:46), and then our cartography expert Gillian Mollod discusses new data on sea level rise and how it might affect the real estate market (11:04), all through an ESG lens.
Two stories this week with ESG glasses: A SPECIAL GUEST joins us to discuss how shareholders should deal with Facebook and Mark Zuckerberg as the founder continues his PR campaign (1:42), and then Meggin Eastman discusses the relevance of Intel's plan to release pay and gender pay data (13:22), all through an ESG lens.
Two stories this week with ESG glasses: There are power cuts throughout South Africa after its largest utility Eskom has a number of generating units break down which has threatened the country's economy (0:41), and Andrew Young gives us a quick update on the issue with private prisons as a business model (10:45), all on the record.
Two stories this week with ESG glasses: 3M and DuPont failed to disclose their findings on the hazardous impact and proliferation of PFAS (0:40), and Hong Kongers are leaving Hong Kong for everywhere but the U.S.(10:11), all on the record.
Two stories this week with ESG glasses: The Council of Institutional Investors recommendation that investors check their CEOs pay packages (0:42), and then we discuss the continuing physical risk to real estate posed by climate change (12:52), all on the record.
Two stories this week with ESG glasses: The different tools available to investors to address ESG risks (0:39), and Thomas Cook collapses into liquidation stranding hundreds of thousands (10:09), all on the record.
Those Facebook workers are actually contractors (1:16), it is not just Facebook because everyone uses temporary workers in vital company roles (2:00), this is bifurcating the workforce and some are taking advantage (4:30), if you want to see how this can affect a society just go to Japan (9:32), this might be a canary in the mine for other countries (14:14), and investors are beginning to take notice (17:12), all on the record.
Two stories this week with ESG glasses: The United Auto Workers go on strike at GM (0:57), and Australia rejects a coal mine due to long‐term health effects (10:58), all on the record.
Note! This is a re-released version with one detail corrected about nuclear power generation. Two stories this week with ESG glasses: Nuclear energy and its role in the low-carbon future (0:42), and California rules contract workers are employees for app-based companies (11:58), all on the record.
Two stories this week with ESG glasses: Companies selling data have difficulties keeping data private (0:43), and Germany bans glyphosate usage (9:06), all on the record.
Two stories this week with ESG glasses: Johnson & Johnson's brand wavers as the opioid crisis comes home (1:10), and the fashion industry tries to lower its waste (11:09), all on the record.
Two stories this week with ESG glasses: The Singapore Health Board partners with Fitbit (0:54), and Meggin and Ric discuss the Business Roundtable's anti-Friedman claim (17:49), all on the record.
Is new stuff the best way to lower our emissions(3:36), maybe not because everything new uses everything old (7:40), well then should investors do something about it (12:00), because cement and fossil fuels are closer than you would think (15:15), all on the record.
Two stories this week with ESG glasses: Shell builds a petrochemical facility (0:41), and Matt and Ric quickly try to understand WeWork and the purpose of disclosures (13:44), all on the record.
Two stories this week with ESG glasses: Walmart's CEO must address gun sales at his stores (0:44), and the CMO of L Brands resigns amid company turmoil (8:58), all on the record.
Two stories this week with ESG glasses: Capital One does not know who is in your wallet (0:38), and NGOs call Cargill the worst company in the world (10:25), all on the record.
Two stories this week with ESG glasses: Equifax is fined a record USD$800 million after its 2017 data breach (0:36), and subprime auto loans area threaten both the auto industry and drivers (8:01), all on the record.
Two stories this week with ESG glasses: Texas landowners sell their water to oil companies in the desert (0:53), and companies get pulled into social movements (11:22), all on the record.
Two stories this week with ESG glasses: Vedanta loses a mine, but is it Vedanta's fault (1:10), and Slack's direct listing works but does it obscure risks (7:18), all on the record.
Two stories this week with ESG glasses: Tesla announces record delivery of cars (0:58), and Wayfair's labor walkout is the new CEO problem (5:03), all on the record.
Two stories this week with ESG glasses: San Francisco bans the use and sale of e-cigarettes (0:44), and poultry processors are accused of collusion in chicken prices (9:11), all on the record.
Karl Marx's biggest meme was a labor innovation (2:42), but also an investor problem (4:48), but someone should tell South Korea (6:42) because the tech model has labor problems (11:00) and Jack Ma and Richard Liu poked the bear (13:11), all on the record.
Two stories this week with ESG glasses: Facebook announces its crypto solution in Libra (0:33), and Canada's Trans Mountain pipeline is approved (8:28), all on the record.
Two stories this week with ESG glasses: Raytheon/UTC could have a human capital problem (1:11), and Ocado's vertical farm is a sustainability love story (8:25), all on the record.
One story this week with ESG glasses: GE, Siemens, and Philips get caught in a corruption scandal in China, so who cares about it most? (0:42), all on the record.
Two stories this week with ESG glasses: Renault/Fiat could end up confusing investors (0:42) and Malaysia rethinks its recycling strategy (6:26), all on the record.
Two stories this week with ESG glasses: McDonald's contends with a discrimination lawsuit (0:47) and Overstock.com's CEO contends with fallback from his stock sale (5:41), all on the record.
Two stories this week with ESG glasses: the US-China trade war has a weird ESG twist (0:45) and Amazon's robot boxing investment (5:45), all on the record.
Two stories this week with ESG glasses: swine fever is disrupting the global pork market (0:44) and Zillow targets inefficiency with iBuying (7:15), all on the record.
Two stories this week with ESG glasses: Norsk Hydro's subsidiary pays NASA for false metal testing (0:58) and Marriott looks to AirBnB for inspiration (7:36), all on the record.
ESG critics and detractors might be right as we look at three big criticisms one by one: there's not enough good data (2:43), there's too much useles data (7:32), and the ESG rating built from the data are meaningless (11:07), all on the record.
One story this week with ESG glasses: Umicore saw its earnings drop and blamed undercutting competition for cobalt (0:37), but the problem might be child labor at artisinal mines (2:12), all on the record.
Two stories with ESG glasses: Amazon employees are turning to shareholder activism to change the company (1:27), and did Jack Ma poke a sleeping employee giant by calling 12 hour work days a blessing (5:47), all on the record.
Two stories with ESG glasses: Saudi Aramco may be oversubscribed, but the disclosure might be the bigger deal (0:47), and the regulators are coming for social media in the UK (4:28), all on the record.
Two stories with ESG glasses: what exactly is the investor angle for Burger King's Impossible Burger play (1:34), and what does it mean that Wells Fargo can't find a new CEO (4:16), all on the record.
Two stories with ESG glasses: are the efficiency gains of AI at McDonald's worth the data risk (1:19), and what does it mean for Purdue to settle some opioid litigation for the industry(5:26), all on the record.
Two stories with ESG glasses: is Paul Ryan on the board of Fox Corp a good idea (1:35), and how the next tech disruption might be social and not technological (3:25), all on the record.
The cocktail of hyper transparency and societal change makes for vulnerable leaders (3:25), but predicting who's next may be a bridge too far (5:15), but investors have solutions to limit the pain (7:18), all on the record.
Two stories with ESG glasses: is the Boeing problem software, or automation (1:48), and how with the Uber and Lyft IPOs, one is not like the other (6:26), all on the record.
Two stories with ESG glasses: Nordea and money laundering (3:48), and the toilet paper conundrum (7:00), all on the record.
We all pay for corruption, maybe without knowing it (2:12), or maybe in ways that are obvious (3:48), but investors are finding out corruption isn't just an emerging market problem (7:04), all on the record.
Companies pick their peers, and it matters, and sometimes investors aren't happy (2:49), even if directors are protected (4:16), but not from shareholders with power (6:20), all on the record.
It's Halloween, and that means ghosts need not apply (2:55), shareholder value might get eaten by zombies (7:33), and your creation might be a monster (12:03), all on the record.
Modern ESG investing is a choose your own adventure, especially when soda meets marijuana. Path 1: Invest your values (1:47), Path 2: Invest for the money (6:02), Path 3: Invest for impact (9:33), all on the record.
For more than 3,000 years, you've been ESG investing, in four chapters. Chapter 1: Your religion is also your financial advisor (1:36), Chapter 2: Financial outcomes are secondary considerations (3:06), Chapter 3: We find out what you really know (4:51), Chapter 4: The milk spills (6:37), all on the record.
A task force chaired by a billionaire has sent investors looking for advice on climate from unlikely sources that may just have them joining a gang. The TCFD (0:00), learning from... oil and gas? (4:00), don't forget renewables (6:32), to divest or engage (8:41), all on the record.
Could the data you provide your dishwasher some day be more valuable than the dishwasher? Internet of Things (0:00), hacking and Hackers (2:55), the GDPR (4:00), Cambridge Analytica (7:06), converging IoT and social media data (10:06), all on the record.
Thinking of Tesla, how should an investor balance good governance with visionary brilliance? Atari and Tesla (0:22), checks and balances (2:32), overgovernance at Apple (4:13), Google's golden shares (5:38), and the Tesla "problem" (9:10), all on the record.
Student debt is huge in the US, but as an investor, is it a good bet? The trend of consumer finance (1:44), Navient stands out (3:38), the reckoning is... robots?(5:35), and it might actually be a skills crisis (8:30), all on the record.
Longtime PepsiCo CEO Indra Nooyi... or one of few women CEOs?... steps down. We talk to Meggin Thwing-Eastman about why that matters. 'Another female CEO done' (0:36), board diversity and employee productivity (1:44), diversity as an investment theme (3:40), more data (6:17), and a little game (9:47), all on the record.
Environmental, social, and governance investing related news, research, and trends. In this episode, we start at the beginning... of 2018. We revisit our conversation with Linda-Eling Lee from January as she walks us through the major ESG trends of this year. Emerging markets (1:48), carbon and asset allocation (4:10), fixed income and ESG (6:30), how much disclosure matters, or does it (9:28), and the Year of the Human (12:49) are discussed.
Environmental, social, and governance investing related news, research, and insights. The MSCI ESG Research podcast series, ESG Now, officially launches soon. In this teaser episode, one of the hosts, Matt Moscardi, asks his family what they think he does for work exactly (before turning to an expert to get a real answer).