Corporate misconduct over federal loans shadowing top-tier financial institutions

In a recent business memo, JPMorgan is to investigate clients and staff over illegally obtained federal aid. The largest US bank has nearly arranged $29bn of forgivable loans under the Paycheck Protection Program (PPP), a business loan initiative established as part of the $2.2 trillion economic stimulus package passed by US…

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Pakistani army to sideline Islamabad over China’s $62bn infrastructural project

Pakistani military seeks greater control over China’s $62bn infrastructural project “Belt and Road Initiative” (BRI) in the country. The army, with close ties with Beijing, is muscling Pakistani government out China’s BRI project in the country with a bill that will cede more responsibility to the army to implement the…

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Hydrogen-powered driving company Nikola makes green solutions look sexy

When it comes to transportation and other industries heavily dependent on fossil fuels, what does create a stronger emotional commitment than the image of a Huracán 5.2 V10? Perhaps nothing, as far as the vast majority of zero CO2 emission vehicles look like Fred Flintstone’s “car”. However, Nikola’s founder Trevor…

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Morgan Stanley, Citi and Bank of America join PCAF and commit to measuring greenhouse emission of loans and investments

Morgan Stanley, Citi, Bank of America and NatWest Group have announced that they will track CO2 emissions of their loans and investments, committing to disclosing the climate change impact of their financings. The banks have joined the Partnership for Carbon Accounting Financials (PCAF), a global group composed by 70 financial…

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Investors demand corporate financial statements to incorporate climate change risks

A growing number of investors, among which we find Calpers, Schroders, DWS and Sarasin & Partners, have been pressuring firms and auditors to include material climate change risks into financial statements. Investors fear that companies accounting reports do not represent the real long-term outlook for many businesses as only a…

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Local and international investors and authorities are pressuring Bolsonaro to fight deforestation

Last July, Jair Bolsonaro, the current President of Brazil, has imposed a ban on forest fires during the dry season and arranged military operations against deforestation practices. This decree comes after pressure from local and international investors and European governments on the need to improve Brazil’s environmental commitment and to…

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Stock ownership by institutional investors cause higher stock price volatility, inefficiency and fragility, study finds

A study by four finance professors, Itzhak Ben-David, Francesco Franzoni, Rabih Moussawi and John Sedunov (June, 2020), has found evidence that the 10 larger institutional investors’ trading activities are responsible for increasing stock price volatility and mispricing in company stocks. In relation to this, the study shows that stocks with…

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Alphabet launches largest sustainable bond offering ever, but this new frontier is not without risks

The Covid-19 pandemic has boosted the offering of socially-related bonds, as underlined in our previous article (http://en.sustainablevalueinvestors.com/2020/07/15/social-impact-bonds-have-outpaced-green-bonds-during-covid-19-pandemic/). Sustainability bonds differ from pure Social Bonds insofar as their proceeds are used to support investments in both environmental and social initiatives. The latest news in the sector comes from Alphabet, Google’s parent company,…

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Boohoo received good ESG ratings despite exploitation of modern slavery in its supply chain

The Manchester-based online fast-fashion retailer Boohoo has launched an independent review of its domestic supply chain after the Sunday Times published an investigation affirming that workers manufacturing its products at a factory in Leichester were paid less than half the minimum wage set by the British law. Additionally, the company…

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Wirecard scandal: the German fintech firm linked to Maltese gambling companies used to launder money for the Mafia

The German payment service provider Wirecard, which went bankrupt last June after its fraud scheme was unveiled, has also been linked to the Italian Mafia. According to a report published by the Financial Times, the company processed payments for two Maltese gambling companies that have laundered money for the ‘Ndrangheta.…

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