In April, it seemed like every day there was a new update on COVID-19 (and the government response) that would have an impact on the future of the economy. Amidst these changes, it is clearer than ever before the importance of ESG issues in responding to this crisis. Working from home, we’ll continue to provide you a list of what our team is reading each month. We hope you enjoy. – Ryan Miller
On COVID-19:
COVID-19 may reveal the true priorities of ESG-focused investors through three issues: executive pay cuts to avoid layoffs, government lobbying expenditures, and easing the burden on small business (Financial Times)
The pandemic will permanently change the landscape of American retail, leaving small business and restaurant closures in its wake and catalyzing the shift to an all-delivery economy (The Atlantic)
Supported by leaders in venture capital and private equity, a group of scientists has become a crucial link between research and the administration’s policy (Wall St. Journal)
On ESG and Impact:
Moody’s cited ESG risks as material considerations in one third of its rating actions in 2019 (Bloomberg, Moody’s)
After criticism, Blackrock renamed ‘impact’ funds to ‘ESG’ funds to align with industry terminology (Responsible Investor)
A survey by Aberdeen Standard Investments shows increasing attention to ESG in private equity, with European investors continuing to lead the way (International Investment)
As of April 13th, major ESG investment funds were outperforming the S&P 500 during the COVID-19-induced market downturn (S&P)
Using misleading carbon-intensity metrics, low-carbon portfolios may be having the exact opposite of their intended effect (Responsible Investor)
On Private Equity:
Backed by Elizabeth Warren and Alexandra Ocasio-Cortez, the Pandemic Anti-Monopoly Act underscores the role of PE-backed acquisitions in reducing market competition, though it has a slim chance of becoming a law (NBC News)
Challenges in the US healthcare system that make quality care inaccessible or unaffordable are being exacerbated and exploited by PE firms in the name of profit (New Yorker)
On Business:
Safety through social distancing is a luxury more accessible to wealthier Americans (New York Times)
Carnival Cruises ignored warning signs related to COVID-19, resulting in preventable fatalities (Bloomberg)
Amazon’s self-publishing arm has become a haven for white supremacists (ProPublica)