If you are like most investors, you dislike uncertainty.
The debt negotiations, the potential downgrade from AAA, and the most recent economic figures -- have given us plenty of uncertainty. But at least we investors have the luxury of being able to sell our shares today and buy them back tomorrow, right?
Business leaders don't have that luxury. They must invest with longer time periods in mind, and with scant opportunity to get their money back if conditions turn ugly. Is it any wonder then that leading indicators of business activity (durable goods sales, surveys of future expectations, and even unemployment) have looked more and more bleak in recent weeks?
Business leaders and US consumers both react to uncertainty by changing their spending patterns in the short term. High unemployment, declining real estate prices and high personal debt levels are all legitimate reasons for consumer spending to remain restrained. Unfortunately, much is riding on the consumer, since we account for about 2/3 of all US economic activity...
Contrary to US economic activity (which was already "slow" and is now merely "sputtering"), corporate earnings have held up rather well. Nearly 80% of earnings reports this quarter have met analysts' expectations. In other words, the economy is disappointing us, but earnings really aren't.
How does one reconcile weak economics with decent earnings?
Consider this: We consumers are more important to the US economy than we are to US companies. Domestic sales now account for less than half of the revenue of the S&P500. And most, if not all of the incremental growth for S&P500 firms is coming from overseas markets.
When China became GM's largest market, it told us that times have truly changed. The US market still matters, of course. But for many companies, other markets might matter more.
Perhaps as investors we should think a bit differently. Conditions might not be as dire as the headlines indicate.
Sunday, July 31, 2011
Monday, July 25, 2011
Large investors urge Russell 1000 companies to adopt ESG practices
California Public Employees’ Retirement System, California State Teachers’ Retirement System and other major institutional investors called on the 1,000 largest U.S. companies to “embrace a new reality” and imbed environmental, social and governance concerns into their business models.
“Environmental and social sustainability issues can no longer be considered off-balance-sheet issues,” the letter said. “Rather they are material, financial issues posing both risks and opportunities to the long-term success of corporations.”
We couldn't agree more.
Read more at Pensions & Investments
“Environmental and social sustainability issues can no longer be considered off-balance-sheet issues,” the letter said. “Rather they are material, financial issues posing both risks and opportunities to the long-term success of corporations.”
We couldn't agree more.
Read more at Pensions & Investments
Saturday, July 23, 2011
Despite its own Sustainability Index, Nasdaq Blacklisted for Lack of Corporate Transparency
A classic case of "Do as we say, not as we do..."
In a terrible twist of irony, Nasdaq (NDAQ), home of the NASDAQ OMX CRD Sustainability 100 Index was one of 58 large coporations 'black-listed' for their lack of transparency on issues related to corporate responsibility.
Each year, in its well-regarded 100 Best Corporate Citizens list, Corporate Responsibility Magazine doesn't just identify the best. They also single out those companies who show a complete disregard for disclosure on issues such as the environment, philanthropy, employee relations.
According to the magazine's editor and publisher Dirk Olin, "We track hundreds of data points of transparency for the Best list, but the companies tied for least transparent disclose exactly zero items." To paraphrase another participant, "It's a pretty low bar. Disclose one item and your off the list."
Interestingly, more than half of the black list is occupied by financial firms. Isn't a lack of transparency what got us into this mess in the first place?
C'mon guys... You can do better.
Read more at Matter Network
In a terrible twist of irony, Nasdaq (NDAQ), home of the NASDAQ OMX CRD Sustainability 100 Index was one of 58 large coporations 'black-listed' for their lack of transparency on issues related to corporate responsibility.
Each year, in its well-regarded 100 Best Corporate Citizens list, Corporate Responsibility Magazine doesn't just identify the best. They also single out those companies who show a complete disregard for disclosure on issues such as the environment, philanthropy, employee relations.
According to the magazine's editor and publisher Dirk Olin, "We track hundreds of data points of transparency for the Best list, but the companies tied for least transparent disclose exactly zero items." To paraphrase another participant, "It's a pretty low bar. Disclose one item and your off the list."
Interestingly, more than half of the black list is occupied by financial firms. Isn't a lack of transparency what got us into this mess in the first place?
C'mon guys... You can do better.
Read more at Matter Network
Chevron: A Boardwalk Sustainabilty Leader with Big Green Aims
Chevron is one of the six “supermajor” oil companies in the world. Interestingly, the firm has also been involved in a large number of clean technology initiatives, and is now the world's largest producer of geothermal energy. (Please see the link below for info.)
We named company a Boardwalk Sustainability Leader in 2011, but not because they dabble in the latest green sectors, but because our research suggests that their environmental policies, safety practices, leadership structure are among the industry's best. These characteristics lead to long term business sustainability. We may applaud their community and philanthropic practices, and feel delighted by their green initiatives, but as investors we hold their feet to the fire, demanding continuous improvement, year after year.
We have seen that oil and gas drilling (especially in deep water) is high pressure, dangerous and dirty work. Chevron hasn't always been at the top of the class here. These days, however, the company can claim amazing progress -- reducing spill frequency and volume, improving worker safety, increasing its own energy efficiency while enacting a plan to that is reducing greenhouse gas and other emissions around the world. Yes, this is an oil company, and their processes and products have massive environmental impact. But thanks to interactions with shareholders and consumers, pressure to mitigate that impact has had positive results -- for the environment, for workers and for the company's share price.
Read more about Chevron's renewable energy initatives at CleanTechies.com
We named company a Boardwalk Sustainability Leader in 2011, but not because they dabble in the latest green sectors, but because our research suggests that their environmental policies, safety practices, leadership structure are among the industry's best. These characteristics lead to long term business sustainability. We may applaud their community and philanthropic practices, and feel delighted by their green initiatives, but as investors we hold their feet to the fire, demanding continuous improvement, year after year.
We have seen that oil and gas drilling (especially in deep water) is high pressure, dangerous and dirty work. Chevron hasn't always been at the top of the class here. These days, however, the company can claim amazing progress -- reducing spill frequency and volume, improving worker safety, increasing its own energy efficiency while enacting a plan to that is reducing greenhouse gas and other emissions around the world. Yes, this is an oil company, and their processes and products have massive environmental impact. But thanks to interactions with shareholders and consumers, pressure to mitigate that impact has had positive results -- for the environment, for workers and for the company's share price.
Read more about Chevron's renewable energy initatives at CleanTechies.com
Thursday, July 21, 2011
If you are like most investors, you dislike uncertainty.
The debt negotiations, the potential downgrade from AAA, and the most recent economic figures -- have given us plenty of uncertainty. But at least we investors have the luxury of being able to sell our shares today and buy them back tomorrow, right? Business leaders don't have that luxury. They must invest with longer time periods in mind, and with scant opportunity to get their money back if conditions turn ugly. Is it any wonder then that leading indicators of business activity (durable goods sales, surveys of future expectations, and even unemployment) have looked more and more bleak in recent weeks?
Business leaders and US consumers both react to uncertainty by changing their spending patterns in the short term. High unemployment, declining real estate prices and high personal debt levels are all legitimate reasons for consumer spending to remain restrained. Unfortunately, much is riding on the consumer, since we account for about 2/3 of all US economic activity...
Contrary to US economic activity (which was already "slow" and is now merely "sputtering"), corporate earnings have held up rather well. Nearly 80% of earnings reports this quarter have met analysts' expectations. In other words, the economy is disappointing us, but earnings really aren't.
How does one reconcile weak economics with decent earnings?
Consider this: We consumers are more important to the US economy than we are to US companies. Domestic sales now account for less than half of the revenue of the S&P500. And most, if not all of the incremental growth for S&P500 firms is coming from overseas markets.
When China became GM's largest market, it told us that times have truly changed. The US market still matters, of course. But for many companies, other markets might matter more.
Perhaps as investors we should think a bit differently. Conditions might not be as dire as the headlines indicate.
The debt negotiations, the potential downgrade from AAA, and the most recent economic figures -- have given us plenty of uncertainty. But at least we investors have the luxury of being able to sell our shares today and buy them back tomorrow, right? Business leaders don't have that luxury. They must invest with longer time periods in mind, and with scant opportunity to get their money back if conditions turn ugly. Is it any wonder then that leading indicators of business activity (durable goods sales, surveys of future expectations, and even unemployment) have looked more and more bleak in recent weeks?
Business leaders and US consumers both react to uncertainty by changing their spending patterns in the short term. High unemployment, declining real estate prices and high personal debt levels are all legitimate reasons for consumer spending to remain restrained. Unfortunately, much is riding on the consumer, since we account for about 2/3 of all US economic activity...
Contrary to US economic activity (which was already "slow" and is now merely "sputtering"), corporate earnings have held up rather well. Nearly 80% of earnings reports this quarter have met analysts' expectations. In other words, the economy is disappointing us, but earnings really aren't.
How does one reconcile weak economics with decent earnings?
Consider this: We consumers are more important to the US economy than we are to US companies. Domestic sales now account for less than half of the revenue of the S&P500. And most, if not all of the incremental growth for S&P500 firms is coming from overseas markets.
When China became GM's largest market, it told us that times have truly changed. The US market still matters, of course. But for many companies, other markets might matter more.
Perhaps as investors we should think a bit differently. Conditions might not be as dire as the headlines indicate.
Friday, July 8, 2011
Shareholder Activism Moved the Needle on Sustainability in 2011
A record number of shareholder resolutions were filed over the past year, calling for companies to be more responsible in handling corporate sustainability challenges. The net response to these actions was surprisingly positive, and some companies chose to engage on issues before votes were taken -- illustrating the growing impact of the strategy as well as a dawning realization by shareholders of the power they can wield.
As signatories to the UN principles for Responsible Investment, Boardwalk Capital has committed to being "active owners". We plan to publicly disclose all shareholder/company engagements via our Twitter feed: Boardwalk_SRI. And to promote cooperation among investors, we plan to post our corporate research and sustainability assessments on the web for all to see.
As signatories to the UN principles for Responsible Investment, Boardwalk Capital has committed to being "active owners". We plan to publicly disclose all shareholder/company engagements via our Twitter feed: Boardwalk_SRI. And to promote cooperation among investors, we plan to post our corporate research and sustainability assessments on the web for all to see.
Wednesday, July 6, 2011
Three states named as finalists for $1.4 billion solar project
Seven counties in Florida, Georgia and North Carolina are in contention to be chosen by National Solar Power, a utility solar company based in Melbourne, Florida, as the location for the construction of the world's largest solar farm.
Sumter and Tatnall Counties in Georgia and Guilford County in North Carolina were selected as possible locations to house a 400-megawatt solar project. This would be the world's largest photovoltaic power plant, according to National Solar Power.
The project would be made up of 20 related 200-acre solar farms, NSP said. Each would generate 20-megawatts of energy. The current largest solar plant is an 80-megawatt solar plant in Ontario, Canada.
This project would be capable of generating enough energy to power 32,000 homes, NSP said.
Read more at Cooler Planet News
Sumter and Tatnall Counties in Georgia and Guilford County in North Carolina were selected as possible locations to house a 400-megawatt solar project. This would be the world's largest photovoltaic power plant, according to National Solar Power.
The project would be made up of 20 related 200-acre solar farms, NSP said. Each would generate 20-megawatts of energy. The current largest solar plant is an 80-megawatt solar plant in Ontario, Canada.
This project would be capable of generating enough energy to power 32,000 homes, NSP said.
Read more at Cooler Planet News
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