End of Week Notes

Does sustainable investing need “quality control”?

Jon Hale
Jon Hale
Jun 14 · 5 min read
US SIF CEO Lisa Woll interviews Minneapolis Mayor Jacob Frey at the 2019 US SIF Conference in Minneapolis

Toward a U.S. Sustainable Investment Policy

Sustainalytics’ Diederik Timmer moderated an interesting breakout session at the conference on the EU Sustainable Finance Action Plan. At one point, he asked the audience, seated at tables, to discuss amongst themselves for five minutes what policies might be appropriate in the U.S. and then report back to the entire group. Besides being a great way to make a conference panel more interactive, it got me to thinking about what a U.S. Sustainable Investment policy might entail.

  • Protection of shareholder rights (effect: defends active ownership from attacks from right-wing business lobbyists in D.C. by preserving the ability of shareholders to surface material risks)
  • Tax incentives for certain targeted sustainable investments (effect: drives more investment into areas of need — renewable energy, climate resilience, mobility, affordable housing, underdeveloped economies)
  • Company impact disclosure (effect: clarity on the costs of externalities, encourages long-termism and positive corporate purpose)

Weekend Reads

Many U.S. companies are taking note of the urgency of recent climate reports and are changing corporate policies…

The ESG Advisor

Incorporating sustainability and impact into your investments

Jon Hale

Written by

Jon Hale

Global Head, Sustainable Investing Research, Morningstar. Views expressed here may not reflect those of Morningstar Research Services LLC. or its affilliates.

The ESG Advisor

Incorporating sustainability and impact into your investments