Why Consider Company Labor Relations When Investing?
Posted on July 11, 2008
Filed Under Human Rights
Company violates labor laws – potential $billions in losses
Not everyone puts two and two together so, we’ll do it for you… Yesterday, Minnesota District Court Judge Robert R. King Jr. ruled that the world’s largest retailer owes $6.5 million to thousands of current and former employees because of wage the violations, which included a failure to give workers their full rest breaks and requiring hourly employees to work off-the-clock during training, according to Reuters.
Last year, Alex Edmans won the Moskowitz Prize, recognizing his outstanding quantitative research in the field of socially responsible investing (SRI). His paper analyzed the relationship between employee satisfaction and long-run stock performance. He demonstrated that companies with good labor relations significantly outperformed the overall market.
Does it make sense to utilize socially responsible investments that are incorporating labor practices into their decisions on whether or not to buy stock in a company? Hmmm… I wonder…
Green Investing: A Ripe Time for Alternative Energy
Posted on July 10, 2008
Filed Under Alternative Energy
2008 Investor Education Workshop Series:
As we soar past 6 billion people on the planet and living standards rise in the developing countries, our demand for energy is growing exponentially. Coupled with the fact that oil resources are reaching their peak (or have already), and we get the rising costs that we’re experiencing today. Econ 101 tells us that prices will continue to rise until we reach equilibrium where, demand is diminished to match the available supply. So, our options are:
- get used to higher prices and therefore accept that some people will be unable to have cars & electricity
- find alternatives to fossil fuels that can provide these goods at a lower price
- or some combination of the above two.
To what degree we incorporate alternative energy into our infrastructure here in the
In the meantime, investors are pouring billions of dollars into this space, believing that invariably, we’ll need to create new technologies and systems to adapt to these realities in the decades to come.
What about you? Are you protecting your investments from the risks presented by climate change and the rising costs of oil? Are you taking advantage of the opportunities that alternative energy sector might produce? If you are interested in learning how alternative energy has emerged as a major investment opportunity, then join Blue Summit Financial Group for our FREE workshop.
Thursday, July 17th at 6:00pm - 8:00pm
The Ridgehaven “
Guest Speaker: Jeanine Perkins (Regional V.P. Calvert Funds)
Refreshments will be served.
Presented by Blue Summit Financial Group, one of the nation’s most trusted financial services firms specializing in sustainable and socially responsible investing since 1994.
3,000 Investors Affirm Blue Summit Financial Group’s Foresight.
Posted on July 1, 2008
Filed Under Climate Change
Years of efforts by investment professionals gaining traction.
More than 3,000 investors have already sent messages in the form of letters to the U.S. Securities and Exchange Commission (SEC) to require publicly traded companies to “fully disclose their current and future risks regarding climate change to their investors and the public,” according to Co-op America.
“Corporate disclosure on climate change benefits investors, consumers, and the corporations themselves. On the other hand, poor climate disclosure and risk management practices will lead to costly surprises for companies and their owners,” said Co-op America Corporate Responsibility Director, Todd Larsen.
Only when companies assess and disclose their risks can they start to address them. Investors are likely to be adversely affected by corporate losses in the future that are tied to climate change impacts.
We know corporate secrecy benefits no one and we are not as surprised to see this reaction from investors. We think it is exciting to see the continued efforts to reduce our impact on the environment, especially in spite of the other market “noise” taking place right now. We feel that now more than ever, given the rising cost of oil and our shaky economy, it is important that we make bold steps like these toward real sustainable change in the way we measure success in this country.
It’s doubly encouraging to see this issue manifest in such a grassroots manner.
Human Rights is Risky Business
Posted on June 25, 2008
Filed Under Human Rights
Earlier this month, UN Special Representative of the Secretary-General on Human Rights and Business, John Ruggie presented his third report to the Human Rights Council. According to CSRwire Weekly Alert, the report sets standards for states to protect against human rights abuses, companies respecting human rights, and victims accessing remedies.
A group of socially responsible investors hailed the report for promoting greater transparency on corporate human rights performance. The social investors also noted that an “affirmative approach to human rights” could benefit “risk-conscious corporations” by reducing the need for shareholder activism, according to Bill Baue on the CSRwire Weekly Alert.
Following Ruggie’s report, the National Labor Committee (NLC) released a surprising report which documented serious human rights violations made by the Toyota Motor Company. The NLC report appears to be the first serious research in 35 years on
- Human trafficking and sweatshop abuse in countries like
- Ties with Burmese dictators who use these revenues to repress and torture the people of
- 10,000 low-wage temps; who are unpaid overtime and overworked to death
This string of reports reinforces the value of screening investment portfolios for human rights issues that is the normal practice for Socially Responsible Investments (SRI) at Blue Summit Financial Group.
By incorporating a variety of social and environmental criteria into our investment process, we not only place fundamental importance on respect for human rights but also protect our investors against the risks of labor mandates and negative corporate image that can significantly affect shareholder value.
Keeping abreast of these issues takes a commitment to stay involved at a deep level. Judy Seid, founder of Blue Summit Financial Group, took on a role as an as member of the organizing committee for last year’s “SRI in the Rockies” conference, put together a breakout session on Human Rights and Corporate Supply Chain Management, with executives from Gap and Ford on the panel.
SRI is becoming main-stream.
Posted on June 24, 2008
Filed Under SRI
10 years ago, SRI investments weren’t generally accepted by many trustees and consultants who were responsible as fiduciaries, looking over other people’s money.
However, a letter from the Department of Labor (DOL) has given firms like Blue Summit Financial Group the support it needed for socially responsible investing (SRI). The DOL sanctioned a letter that endorsed the use of social and environmental criteria in the investment decision-making processes.
According to a survey by the Social Investment Forum, a national organization dedicated to advancing socially and environmentally responsible investing, some $1.49 trillion were held in socially screened separate accounts managed for institutional clients as of 2004. In 2006 we are up by 27% with $1.88 trillion in assets.
A survey released in June 2007 by the Social Investment Forum and Mercer defined that 129 contribution plan sponsors found that 19% already had an SRI option and an additional 41% planned to add one over the next three years.
Although SRI has proven to be as profitable as “regular” investing, often-times people aren’t motivated to utilize an SRI approach purely for financial reasons; they’re more concerned with supporting companies that are ethical and that are in line with their values.
The SRI industry has been integral in putting pressure on companies and on government to be more sensitive to our environmental and social impact. It’s an area that affects everybody and offers an avenue for people who care to affect the world.
Report: Socially Responsible Investing Assets In U.S Surged 18 Percent From 2005 To 2007, Outpacing Broader Managed Assets
Posted on March 6, 2008
Filed Under SRI
Spurred by such factors as rising institutional investor interest, growing demand for climate-related renewable energy alternatives, concerns about the Sudan humanitarian crisis, and the emergence of new products, socially responsible investing (SRI) in the United States is now growing at a much faster pace than the broader universe of all investment assets under professional management, according to the new edition of the Report on Socially Responsible Investing Trends in the United States published by the nonprofit Social Investment Forum (SIF). The report found that, from 2005 to 2007, SRI assets increased more than 18 percent while all investment assets under management edged up by less than 3 percent.
Highlights of the new Social Investment Forum Trends report include the following:
SCREENED FUNDS: Assets in all types of socially and environmentally screened funds – including mutual funds and exchange-traded funds (ETFs) – rose to $201.8 billion in 260 funds in 2007, a 13 percent increase over the $179.0 billion in the 201 tracked in 2005. Eight socially and environmentally screened exchange-traded funds (ETFs) with $2.25 billion in total net assets were available through the end of 2006 – the first time SRI-focused ETFs have been a factor in a Social Investment Forum Trends report.
INSTITUTIONAL INVESTORS: At more than $1.9 trillion in assets, socially screened separate accounts managed for institutional investors and high net worth individual clients constituted the bulk of SRI assets tracked in 2007, up 28 percent from $1.5 trillion in 2005. Institutional investors have also used the stock they hold to increasingly participate in shareholder resolutions.
SHAREHOLDER RESOLUTIONS: The average level of shareholder support for resolutions on social and environmental issues increased 57 percent from 9.8 percent in 2005 to 15.4 percent in 2007, a record high.
COMMUNITY INVESTING: Assets in community investing institutions rose nearly 32 percent from $19.6 billion in 2005 to $25.8 billion in 2007.
Walden Asset Management Senior Vice President Tim Smith, immediate past chair of the Social Investment Forum, said: “Shareholder resolutions on environmental, social and related corporate governance questions are now enjoying major mainstream acceptance and the vote totals that go with that. Part of that is due to widespread investor concerns about such issues as climate change, the
Social Investment Forum CEO
OTHER KEY FINDINGS
Mutual Funds: The largest share of socially and environmentally screened funds are mutual funds, with $171.7 billion in total net assets invested in 173 different funds available in 358 different share classes. Of these socially and environmentally screened mutual funds, 19 of them with $12.5 billion underlay variable annuity products.
Other Screened Funds: Three socially and environmentally screened closed-end funds with assets of $850 million were tracked separately for the first time. Also, an estimated $5.3 billion in capital were identified under the management of 46 different socially or environmentally screened alternative investment vehicles, such as social venture capital, double- and triple-bottom-line private equity, and hedge funds, typically organized as unregistered limited partnerships or limited liability companies and available only to accredited institutional and high-net-worth investors. Nearly 11 percent of the total assets in all socially screened funds – $21.7 billion – were invested through 30 other pooled products, typically commingled portfolios managed primarily for institutional investors and high-net-worth individuals.
Large Investors: $1.88 trillion in assets are managed in institutional client accounts, a 27 percent increase over the $1.49 trillion identified in 2005. Additionally, investment advisers managed $39.5 billion for individual high net worth clients, a $22.2 billion increase over the $17.3 billion identified in 2005.
Shareholder Resolutions: The total number of resolutions increased from 360 in 2005 to 367 in 2006. Institutional investors that filed or co-filed resolutions on social or environmental issues controlled $739 billion in assets in 2007, a more than 5 percent increase over the $703 billion in assets counted in 2005.
For the full text of the executive summary of the 2007 Trends report, go to www.socialinvest.org/resources/research on the Web.
Toxic Chemicals in Products: Financial Risks & Opportunities
Posted on February 4, 2008
Filed Under Product Safety
Thursday, February 28th
6:30pm – 8:00pm
Blue Summit Financial Group
9001 Grossmont Blvd.
La Mesa, CA 91941
Refreshments and hors d’oeuvres will be served
Toxic chemicals from everyday products contaminate the bodies of every person in this country. Shower curtains, water bottles, baby bottles, toys, shampoo, cosmetics, couch cushions, computers, and hundreds of other common products that people use every day contain toxic chemical ingredients that leach out of the products and into our bodies.
A recent survey conducted by the Centers for Disease Control and Prevention found 148 chemicals in Americans of all ages, including lead, mercury, dioxins, and PCBs. These and related findings are contributing to rising awareness that the choices businesses make about managing toxic chemicals in their products can have major financial consequences.
In this workshop you will learn how poor corporate management of toxic hazards can increase risks for investors and hinder share performance. Alternatively, corporate efforts to minimize toxic exposures, or to offer safer alternatives, can benefit corporate bottom lines and potentially reward investors.
Presented by Blue Summit Financial Group, one of the nation’s most trusted financial services firms specializing in sustainable and socially responsible investing since 1994.
Socially Responsible Investing (SRI)
Posted on December 12, 2007
Filed Under SRI
What is Socially Responsible Investing (SRI)? According to the Social Investment Forum, SRI is a broad-based approach to investing that now encompasses an estimated $2.3 trillion out of $24 trillion in the U.S. investment marketplace today. SRI recognizes that corporate responsibility and societal concerns are valid parts of investment decisions. SRI considers both the investor’s financial needs and an investment’s impact on society. SRI investors encourage corporations to improve their practices on environmental, social, and governance issues. You may also hear SRI-like approaches to investing referred to as mission investing, responsible investing, double or triple bottom line investing, ethical investing, sustainable investing, or green investing.As a result of its investing strategies, SRI also works to enhance the bottom lines of the companies in question and, in so doing, delivers more long-term wealth to shareholders. In addition, SRI investors seek to build wealth in underserved communities worldwide. With SRI, investors can put their money to work to build a more sustainable world while earning competitive returns both today and over time.
Socially responsible investors include individuals and also institutions, such as corporations, universities, hospitals, foundations, insurance companies, public and private pension funds, nonprofit organizations, and religious institutions. Institutional investors represent the largest and fastest growing segment of the SRI world.
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