EbeneNews – GB – Investor Ubben warns more stocks vulnerable to social and environmental selling


BOSTON (Reuters) – Jeffrey Ubben, the former activist-turned-ethical investor, said on Tuesday that environmental, social and governance concerns would rise hit company stock prices, as did climate change hurt stocks in oil and gas companies

Ubben, who retired from $ 16 billion activist ValueAct Capital Management LP in June to create Inclusive Capital Partners LP, an ESG-focused fund manager, said stock prices of many large companies did not yet fully reflect the global issues they contributed to, such as McDonald’s Corp MCDN on obesity and Coca-Cola Co KON on plastic waste, but that was starting to change

“Core business externalities are now starting to reflect in the share price,” he said in an interview with Reuters Events ESG Investment North America here

In an emailed statement, a Coca-Cola spokeswoman said the company is “committed to being a responsible business” and has invested worldwide to increase the number of bottles and be able to recover while already using at least 50% recycled content in all packaging McDonald’s representatives did not respond to an email requesting comment

Ubben also denounced what he called the “productization” of ESG investing through exchange-traded funds, products that invest in a basket or index of stocks known as ETFs, claiming they made investors feel good but their money was not being used to cause major change

ESG exchange-traded funds managed by BlackRock Inc BLKN and others have too many widely owned stocks that meet ‘checklist’ criteria but whose broader activities could be problematic, said Ubben

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“They own the same 10 stocks as S&P,” Ubben said, citing Google GOOGLO and Facebook Inc FBO as examples “It allows people to run away from the problem and think they are doing something”

A BlackRock spokesperson declined to comment The company has seen some $ 25 billion flow into its ESG ETFs this year, double the amount in 2019, according to its earnings report on Tuesday

CEO Larry Fink said in a January letter to company executives that BlackRock was expanding its line of ESG products because it wanted “to make sustainable investing more accessible to all investors.”

Ubben said he supports Fink’s wider efforts to increase engagement with companies on ESG issues

Ubben said Inclusive, which managed $ 1.3 billion in July and is backed by the AMGN affiliate manager group, would seek investments in growth companies with high potential for ESG impact, or those whose trading is lower after taking into account the external ESG impact late and committed to change

Inclusive’s portfolio so far, said Ubben, includes wood pellet maker Enviva Partners LP EVAN; renewable diesel company Darling Ingredients Inc DARN; interior farmer AppHarvest; educational technology company strategic education STRAO; and electric truck manufacturer Nikola Corp NKLAO

Nikola, of which Ubben is director, recently came under pressure to prove his nascent hydrogen-powered technology

“When price assumes the status quo, we step in and change the strategy,” he said. “This is the idiosyncratic return we’re looking for”

All quotes have been delayed by at least 15 minutes See here for a full list of exchanges and delays

Jeffrey W Ubben, ValueAct Capital, Investor, Stock

EbeneNews – GB – Investor Ubben warns more stocks vulnerable to social and environmental selling

SOURCE: https://www.w24news.com

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