Biden makes ESG investing a key focus of new administration

Published 01-FEB-2021 17:57 P.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

Newley elected US President Jo Biden’s expected regulatory changes will push environmental, social and governance (ESG) investing “to become the ultimate megatrend,” says deVere Group CEO Nigel Green.

President Joe Biden has picked Gary Gensler to head the Securities and Exchange Commission (SEC), the US financial regulator.

Joe Biden’s administration is going to usher in an era of serious momentum for responsible and sustainable investing.

This is not just because of the likely tougher approach to the use of fossil fuels and his campaign’s vow to take swift action to tackle the climate emergency.

It is also because of the expected appointment of Gary Gensler to lead the SEC, who is likely to heavily reform and broaden ESG investing and corporate disclosure rules in the US.

In doing such, we can assume that Gensler would have the major support on the Commission.

For instance, upon her appointment as acting SEC chair, Allison Herren Lee said that during her time as a Commissioner, 'I have focused on climate and sustainability, and those issues will continue to be a priority for me'.

In The New York Times she wrote that: 'Both investors and the broader public need clear information about how businesses are contributing to greenhouse gas emissions, and how they are managing — or not managing — climate risks internally. Realistically, that can happen only through mandatory public disclosure'.

Should the SEC push ahead with beefing-up green investment rules, as is expected, it will close the transatlantic gap that has emerged in recent years as the European watchdogs pushed ahead with increased stricter ESG investing and disclosure regulations.

At the beginning of 2020, I described ESG investing as a ‘megatrend’ of the decade. And throughout the year inflow doubled and ESG funds outperformed the market.

But the tag ‘megatrend’ would now seem somewhat underplayed if the US moves towards ESG-related regulatory reforms and comes into line with Europe.

Responsible investing will become the ultimate investment megatrend should this happen.

The likely rule changes in the US on ESG investing and corporate disclosures are not as yet heavily priced-in to markets.

Investors should keep a keen eye on this area and move to take advantage of the opportunities.

NB: In a move to encourage clients to consider the ESG opportunities, last month deVere Group announced it is planning to offer free, independent advice on socially responsible investing, with the aim of positioning $1BN in environmental, social and governance (ESG) investments within five years.

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12BN under advisement.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X