Global Power Energy’s Post

This message is not surprising to me. The lack of understandable guidelines for ESG made investments in 2024 very wobbly for PE and VC investors. Unlike ADA codes in 1990's ESG never formulated "rules" of S & G. The (E) environmental side is filled with data that supports actions for carbon emissions and long term economic benefits. I hope that investors continue to see E as an evolving feature that goes hand in hand with real estate. Nice summary Brendan Wallace! #inteliGlas #smartbuildings #betterlives

ESG should not be a political football This post by Brendan Wallace has highlighted that ESG has unfortunately turned into a political football, overshadowing their fundamental purpose: to provide stakeholders -ranging from employees to investors—with relevant and material non-financial insights. These metrics are essential for understanding risks and opportunities and enabling boards, senior management and investors to make informed decisions. Essentially, ESG acts as a non-financial audit of a company’s overall impact—on the environment, society, and its workforce. With global challenges like climate change and a greater emphasis on employee wellbeing post-COVID, the demand for transparency in ESG performance has grown. Regulatory bodies, employees, customers, and investors alike expect companies to demonstrate accountability and progress against ESG targets. It is not just about compliance; it is about equipping leaders with actionable insights to navigate risks and seize opportunities. In an increasingly conscientious market, integrating material EESG metrics into regular reporting is no longer optional—it is essential. By the way, as Employees are a company's most important asset they should have a separate initial. So it should be EESG!

Two things about the current moment's ESG sentiment really struck me after attending the J.P. Morgan Asset Management Conference: 1. Larry Fink’s Shift on ESG Larry Fink from BlackRock spoke, and what stood out was the complete absence of any mention of ESG. A year ago, ESG dominated his messaging—it was everywhere. This time, when someone from the audience brought it up, he skirted the topic entirely. Absolutely a noticeable and deliberate shift in tone. 2. Jamie Dimon's Opposition to ESG Jamie Dimon from JP Morgan followed with an incredibly direct and unvarnished speech. He expressed strong antipathy toward ESG, equating it with "woke" policies and saying JP Morgan had gone too far in its embrace of it. His message was distinctly anti-ESG and unapologetically critical. This conference, which featured top CEOs and CIOs from major asset managers, left me thinking about how much momentum ESG has provided for climate, sustainability, and impact funds over the last four years—it’s been massive. But now, with some of the world’s largest capital allocators expressing disinterest at best and outright opposition at worst, I’m wondering what this means for the future. I’ve always felt ESG was an unnatural fit for climate funds, because it lumped together unrelated issues, like ethics and sociology, with the very technical challenge -- it's literally a physics problem -- of solving the energy transition. With this fracturing of ESG gaining traction, I’m curious: How will this shift affect private market capital flows into climate, and what does it mean for climate funds going forward?

Facing challenges with ESG data? Our latest blog (https://hubs.ly/Q02yFRPw0) explores the need for standardized metrics and how funds and asset managers can position themselves to navigate an evolving ESG landscape. #FinanceForward #Blog #esgdata #esgreporting #esginvesting #esgintegration #buyside #hedgefunds #assetmanagement #ESG

I wrote my first blog post for the CI blog this week! If you want a relaxing beach read for the holiday weekend, take a quick glance over my blog post—and the whole site if you’re in need of more material—for some insight on how firms are implementing ESG positioning in a time of greater SEC scrutiny. https://lnkd.in/e-qP8Sp4

- Better data means better action? – Why CSRD matters A recent article in the Financial Times highlighted the ongoing struggles asset managers face with inconsistent and incomplete ESG data. A BNP Paribas poll of 420 investors, including asset owners, managers, hedge funds, and private equity groups, found that 70% cite “inconsistent and incomplete” data as the biggest barrier to ESG investing. It immediatly made me think about why frameworks like the CSRD are so important. While the article didn’t mention the CSRD directly, the issues it raised; the lack of reliable data, challenges in comparability, and gaps in disclosure, are exactly what the CSRD is designed to address in my view. Don’t get me wrong, directives like the CSRD come with their challenges and are far from perfect. They’re complex, time-consuming, and, at times, I imagine, frustrating. But their purpose is clear: to align efforts and improve transparency. So, beyond compliance, the CSRD is about building a foundation for better decision-making, accountability, and trust in o.a. ESG investments. Let’s not loose sight of the bigger picture: better data (potentially) drives better action. Inspired by the Financial Times article: “Data shortfall undermines ESG investment, asset managers warn”: https://lnkd.in/eA7xypSG #CSRD #Sustainability #ESG #ESGInvesting

Nanuk's Dan Powell speaks to smstrusteenews News on why investors should exercise a degree of caution when considering portfolio allocations which reference the term 'ESG'. “Our perspective on it has always been that 'ESG' is an extraordinarily unhelpful acronym because people use it to describe a series of discrete and quite different things. Unless you get to the heart of what it is you’re actually talking about, it’s just confusing," Dan says. Read more here: ESG labels unreliable - SMS Trustee News @Nanuk's @Dan Powell speaks to SMS Trustee News on why investors should exercise a degree of caution when considering portfolio allocations which reference the term 'ESG'. “Our perspective on it has always been that 'ESG' is an extraordinarily unhelpful acronym because people use it to describe a series of discrete and quite different things. Unless you get to the heart of what it is you’re actually talking about, it’s just confusing," Dan says. Read more here: https://lnkd.in/ghFqij2w #NanukAssetManagement #ESG #sustainableinvesting 

ESG Isn’t Dead, Just Delayed: Why Asset Managers Must Balance Data Challenges with Long-Term Commitments According tot the below FT article - asset managers face criticism on two fronts: not doing enough to tackle climate change and overstating their funds' green credentials. They argue that unreliable and inconsistent ESG data makes it difficult to assess companies’ environmental efforts, especially for smaller firms and emerging markets. However, critics like ShareAction say this is no excuse, as many managers fail to act on existing data or engage systematically with companies. While ESG data quality is improving, regulators and asset managers must drive better disclosure and accountability. Data imperfections shouldn’t stall progress—using available tools more effectively can drive real change. My Take: ESG data still lacks maturity. For now, consolidating multiple sources remains the best approach until common standards and regulatory enforcement drive consistency among data providers. While ESG was a major trend a few years ago, focus has shifted toward ETF growth and, more importantly, investments in multi-asset classes, particularly private markets. Does this mean the buy side should abandon ESG? I don't think so. Firms must proceed cautiously, recognizing ongoing data challenges and building robust data management frameworks to address this. With the new political environment in the U.S. in 2025, a regulatory push on ESG standards seems unlikely. ESG’s time will come again—just not now. #buyside #esginvesting

ESG investing is entering a phase of maturity as regulatory oversight and politicization shape how companies and investors approach risk and transparency, says Aaron White, vice president of sustainable investments at CIBC Asset Management / Gestion d'actifs CIBC.

Sustainable investing continues to show promise, with 73% of asset managers expecting market growth despite challenges from political opposition. ESG factors remain integral to risk management and long-term returns. https://hubs.la/Q0302f3M0