First Affirmative’s Chief Investment Officer, Theresa Gusman, is on a mission to change the way companies, advisors, and individuals see their investments. Gusman’s commitment to incorporating environmental, social, and governance (ESG) issues into investment decisions began early in her 30-plus year investment career. She understands the full investment process, from research and portfolio management to asset and wealth management leadership roles, including Senior Portfolio Manager, Global Head of Equities, and Global Executive Committee Member at Deutsche Bank.
Theresa's commitment to sustainable, responsible, and impact (SRI) investing is driven by her fiduciary responsibility to clients and strong belief that ESG issues are financial issues that can affect performance and risk -- in addition to being the right thing to do. She is convinced that clients' financial and impact objectives are attainable simultaneously.
First Affirmative’s unique AffirmativESG platform provides a unique, proprietary foundation for analysis, assessment and measurement. All of these factors combine to help Gusman in her work toward making sustainable, responsible, and impact investing accessible to all.
ESG (Environmental, Social, and Governance) investing is becoming increasingly popular, as more investors recognize the potential financial benefits of considering a company's environmental and social impact in addition to its financial performance. However, there are also a number of issues that have arisen with ESG investing.
Our event will discuss a few of the many issues that have arisen with ESG investing. However, it's important to note that as the ESG investing field matures and more data and guidelines become available, these issues may be addressed. However, we think that the playbook that is being written can not be is incomplete and needs to take in points of view from a diverse section of stakeholders, not just financial professionals.
The Securities and Exchange Commission (SEC) is the primary federal regulator of securities markets in the United States. The SEC has not established specific regulations or guidelines for ESG investing, but it has issued guidance to companies and investment advisers regarding their disclosure of ESG-related information.
In February 2020, the SEC issued interpretive guidance that addresses the application of existing SEC rules and regulations to climate change-related disclosures by companies, in particular, “in the context of their business and their financial condition, including how their businesses and financial condition may be impacted by climate change risks and how companies are managing those risks.”
The SEC also clarified that ESG disclosures and performance should not be misleading or inconsistent with other financial disclosures to the SEC, and that companies should be consistent in the way they report their ESG data and performance.
As for investment advisors, SEC has provided guidance stating that Advisers to investment companies, should consider how Environmental, Social, and Governance (ESG) factors may be relevant to the fund’s investment goals and strategies, and how they would integrate such considerations into their investment process.
In summary, while the SEC has not established specific regulations for ESG investing, it has issued guidance that companies and investment advisers should be transparent and consistent in their disclosure of ESG-related information and not making misleading claims.
Resources listed below provided courtesy of Duel Glass, Principal
1. Blanket bans on fossil-fuel funds will entrench poverty An article in Nature.
2. Household air pollution World Health Organization article
4. Saudi Aramco: Biased ESG Policies Will Undermine Energy Security | OilPrice.com
5. Why The White House Is Wrong About Oil Major Share Buybacks | OilPrice.com
6. Bettering Human Lives - Liberty Energy ESG Report - libertyenergy.com
7. Liberty CEO, Chris Wright, Responds to WSJ Article - libertyenergy.com
8. Chris Wright - Energy & Health Presentation.
9. The Dual Challenge: Energy and Environment | Scott Tinker | TEDxUTAustin
10. The Switch Documentary - YouTube
14. Archive - Energy Talking Points by Alex Epstein
15. Resources from Alex Epstein | Center for Industrial Progress
16. The Moral Case for Fossil Fuels | Alex Epstein | Talks at Google - YouTube
17. MCFF Handout 20160708 Summary of The Moral Case For Fossil Fuels
Speakers: James Trapp, Rick Stone, Theresa Gusman, Duel Glass, and Ravi Gupta MD
First Affirmative Financial Network has partnered with YourStake.org to create a strong force in the ESG/SRI arena with portfolio construction and reporting platforms that can elevate the conversation and assist in creating investments for a better future. Advisors have a wealth of information at their fingertips through these comprehensive tools. Both First Affirmative and YourStake.org are working to improve the understanding of investment performance, reduce risk and have a positive impact on the world through SRI investing and ESG principles. AffirmativESG and YourStake – can help advisors align their clients’ investments with their values by providing customized investment portfolios and tangible metrics on issues from animal to human rights and climate change to corporate responsibility.
Speakers: Theresa Gusman, Gabe Rissman, and Patrick Reed
First Affirmative is an independent, employee-owned investment advisor registered (RIA). First Affirmative provides investment advice consistent with the philosophies of sustainable, responsible, impact (SRI) investing. First Affirmative began conducting business in 1999 and believes (as it has from the beginning) that the ways in which people save, spend and invest can dramatically influence both the fabric and consciousness of society. Investors can make a meaningful difference by consciously directing investment capital toward enterprises that contribute to a clean, healthy environment, that treat people fairly and embrace equal opportunity, that produce safe and useful products, and support efforts to promote world peace. Clients who choose to invest with First Affirmative make a conscious choice to put their money to work for a dual purpose—to provide for a secure retirement, for example, while working for a better, more socially just and environmentally sustainable future for all.