Some episodes at KPMG are creating tension between partners and are unsettling staff. "Two of KPMG’s most senior financial consultants have quit the Big Four firm after Tim Howarth, their boss, was ousted following an investigation into his conduct". We are talking about Mike Walters and...
Corporate Governance, ESG / 07.09.2019
Does capitalism need saving from itself?
Gillian Tett, chair of the editorial board for the Financial Times, reflects on "why bosses are buying into the idea of a purpose beyond profit", after decades in which shareholder interests have dominated the boardroom and shareholder value has been the 'mantra' in financial markets. She interviews...
Oil and Gas / 06.09.2019
Trump reverses methane emission limits, resulting in GHG increase in the USA
Controversial news coming from the White House: Trump administration has taken another step back for US environmental regulations. Indeed, it proposed to remove the limits and rules for companies which are required to prevent methane leaks during drilling operations for oil and gas. The issue with methane...
Big Four, Women empowerment / 03.09.2019
Former female KPMG members launch rival consulting firm as a response over concerns about bullying
Maggie Brereton and Ina Kjaer, former KPMG partners, launched their consulting firm, Eos Deal Advisory. The company has been named after the Greek goddess of the dawn. The two advisors left KPMG this February, as a form of protest to the response that the firm alleged...
Corporate Governance / 02.09.2019
Shareholders press US boards to split chief executive and chairman roles
In the US, companies seem to be under pressure by shareholders proposals to separate the roles of chief executive and chairman, claiming for an independent board leadership. Data confirm the separation of roles is increasingly seen as a best practice in corporate governance, indeed, "according...
Not only Amazonia: large parts of Earth are burning, and the problem might be bigger than it appears. Journalists have focused on the enormous devastation that is occurring in Amazonia this year: in comparison to last year, the number of fires in the region has enormously...
On August 26, 2019, Johnson & Johnson was ordered to pay USD 572 million in Oklahoma, the US, to resolve allegations of fraudulently downplaying the hazards and overemphasizing the benefits of opioids. According to the ruling from a US County Court, the firm has used misleading...
The asset management giant Vanguard has ejected 29 stocks from the funds created to invest in companies with strong environmental, social and governance records. The news published by the Financial Times as of August 13, 2019 reports Vanguard statement after the event: “the companies were included...
Climate change, Oil and Gas / 04.08.2019
Renewable energy is good money, not just good for the earth
As the Financial Times points out in the article dated August 4, 2019, climate change is not anymore just a mere ethical issue concerning our planet health, but also as the call for socially responsible investments. "Rise of electric vehicles makes solar and wind better long-term investments than...
ESG Rating / 01.08.2019
LSE acquisition of Refinitiv
London Stock Exchange ("LSE") signed a deal with investment funds affiliated with Blackstone and Thomson Reuters to acquire Refinitiv, financial data and trading platforms provider. Refinitiv shareholders will acquire a stake of approximately 37 per cent economic interest in LSEG and less than 30 per cent of the total voting rights...
A report from Institute for Energy Economics and Financial Analysis (IEEFA) found out recently that BlackRock lost $6.5tn by betting on oil companies and missing out growth in clean energy investment. According to the IEFA report, BlackRock ignored “the serious financial risk of investing in fossil fuel and...
Investors seeking more than just financial return face the risk to issue bonds that are green in the name only. According to Financial Time, “the green bond market is growing faster that ever, and companies and government have borrowed more than $100bn so far this year”. However,...
ESG Rating / 22.07.2019
ESMA advises against explicit ESG analysis mandate for credit rating agencies
“Credit rating agencies should not be explicitly required to consider environmental, social and corporate governance (ESG) factors when assessing issuers’ creditworthiness, according to the EU financial markets watchdog.” This is what IPE claims right after ESMA (European Securities and Markets Authority) decision of excluding the explicit...
A US$ 500m ETF run by Vanguard that claims in its marketing material to specifically exclude "fossil fuel" stocks invest in several companies in the oil and gas industry, including oil services company Schlumberger, pipeline company Kinder Morgan and crude oil refiner Marathon Petroleum, as of...