…BUT THIS VOTING SEASON has turned into a big disappointment. Despite ISS’ shareholder-rights campaign, the presidents of Japan’s top 200 companies received median voting support of 96.6%—a 0.5 percentage point rise from 2014. Even the president of Toshiba (6502.Japan), which lost a third of its market value from an accounting scandal and write-downs, got a 94% approval rating. Some 76% and 91% of investors voted against dividend hikes and share buybacks, respectively.
Category: Investment
New Stewardship Code Signatories (Highlighted on this list)
There are now 191 signatories to the Stewardship Code. The most recent signatories are highlighted on this list:
http://www.fsa.go.jp/en/refer/councils/stewardship/20150611/02.pdf
“Stewardship Code: 9/2/2014 Message from the FSA – To institutional investors that have yet to accept the Code”, and others
September 2, 2014
[To institutional investors that have yet to accept the Code]
160 institutional investors have already announced their acceptance of Japan’sStewardship Code (hereinafter referred to as the “Code”) by the end of August2014.
The Financial Services Agency (FSA) would welcome the decision to accept the
Code by those who have yet to do so. The Code allows its signatories to take intoaccount their specific conditions and situations, as far as it is in line with the “aimand spirit” of the Code.
The acceptance of the Code by asset owners is particularly important becausethey are expected to work as a “driver” for the implementation of the Code.
The Economist Intelligence Unit: “Cost of inaction – Recognising the value at risk from climate change”
The value at risk to manageable assets from climate change calculated in this report is US$4.2trn, in present value terms. The tail risks are more extreme; 6°C of warming could lead to a present value loss worth US$13.8trn, using private-sector discount rates. From the public-sector perspective, 6°C of warming represents present value losses worth US$43trn—30% of the entire stock of the world’s manageable assets.
Cary Krosinsky: “Sustainability is ESGFQ – How to Measure Your Investments on Sustainability”
Q – Quality of management is something that can be achieved only by direct interaction and investor judgment. Hence, sustainability inevitably needs human interaction, face-to-face dialogue and understanding that management is committed to full integration of sustainability — walking the walk, not just talking the good talk.
Cary Krosinsky: “The Future of Air Travel – Efficiencies and Business Success Taking Off”
Since most of an aircraft’s lifetime GHG emissions occur in service, Boeing feels it is critical to design and build products and systems with sustainable technologies to reduce the environmental footprint while reducing cost. Boeing’s engineers look to make design decisions considering environmental performance measures that:
Cary Krosinsky: “The Future of Electric Utilities – Calls For Change Proving Disruptive”
There is also clear connectivity between Utilities and Cars and their footprint, as Electric Cars will only be as 'green' as the electricity input is.
Tesla can and will design and sell electric cars, and consumers can buy them as a badge of honor of sorts, but if the car is being charged with electricity sourced from a utility that is mostly burning coal, then electric cars are likely worse for the environment than driving a car, and filling up at your local gas station.
The Japan Times:”Toyota Wins Approval For Shares Locking In Owners For Five Years”(w/quote from BDTI’s Representative Director)
Toyota Motor Corp. has won approval to sell a new class of stock to long-term shareholders, a proposal that divided proxy advisers and drew criticism from foreign investors.
Cary Krosinsky: “The Future of Cars – The Sustainable Investing Sector Series Begins”
As seen years back when GM didn't act fast enough to change with the times while Toyota became dominant through its Prius success and focus on quality, sustainability is in many ways now the most important trend to consider in the Auto sector. GM used to be one of the largest companies in the world, and they faded in value while Toyota became dominant. The performance of this sector has arguably directly been tied to sustainability focus and success over the last 20 years, and this is likely to reoccur in future. At minimum, sustainability considerations need to be directly in the mix of investor considerations. Watch for future pieces across all sectors where sustainability has become increasingly critical to ongoing investment success.
Full article:
http://socialinvesting.about.com/od/Sustainable-Investing-Strategy/fl/The-Future-of-Cars.htm
The New York Times:”Norway Will Divest From Coal in Push Against Climate Change”
Norway’s $890 billion government pension fund, considered the largest sovereign wealth fund in the world, will sell off many of its investments related to coal, making it the biggest institution yet to join a growing international movement to abandon at least some fossil fuel stocks.