Best practices in ESG management are dynamic; changing with new regulation, lawsuits, investigative journalism, and research. Every month, our team evaluates these changes to provide the best advice to our clients. We’re happy to present a curated list of what we’re reading, which we’ll send on the last Thursday of each month. We hope you enjoy. – Malk Partners
On ESG and Impact:
Restaurant Brands International (RBI), parent company of Burger King, Tim Hortons and Popeyes, has adjusted its sustainability commitments which will now target a 50% reduction in GHG emissions by 2030 and net-zero emissions by 2050. (ESG Today)
Salesforce announced that it has reached net-zero emissions across its entire value chain, and now uses 100% renewable energy for all operations, further demonstrating market awareness for sustainability. (ESG Today)
ESG ratings may be inaccurate and misleading when excluding factors such as unsustainable sourcing practices and labor exploitation. (Bloomberg)
Bumble made significant changes to its employee leave policy to provide options for employees of diverse backgrounds based on their needs, signaling its commitment to diversity, equity and inclusion. (Inc.com)
The fashion industry is receiving increased public scrutiny over its contribution to climate change due to the extensive use of fossil fuels within its supply chain. (Fast Company)
On Regulatory:
The Swiss Federal Council announced that public companies which meet certain thresholds (related to employee counts and/or revenue totals) will be required to disclose and report on climate change matters, aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations, starting in 2024. (ESG Today)
California is aiming to ban companies from using the recyclable three arrows symbol unless they can demonstrate that the materials in question are actually recyclable. (The New York Times)
On Markets:
President Xi Jinping announced that China would cease supporting new coal-power projects overseas; however, his commitment raises questions over China’s persisting domestic dependence on coal. (Economist)
Private market investors have been slower than public market peers to adopt ESG strategies, but they’re starting to catch up on sustainable investment as a mechanism for generating returns. (Institutional Investor)
Harvard University will no longer invest in fossil fuels through its ~$41.9B endowment and will look to wind down legacy commitments. (The New York Times)
The European Commission announced its Green Bond Framework, which is part of the EU’s €800B recovery program, aimed at supporting economic recovery from COVID-19 and making the EU greener, more digital, and more resilient. (ESG Today)