Alpha-Centric ESG Research

Kyle Rudden

I am an ESG (Environmental, Social, Governance) analyst with an alpha-centric approach to ESG research. After all, ESG investing is, first and foremost, investing. "Alpha-centric" does not mean apathetic, however. Quite the contrary. I believe global sustainability – i.e., environmental stewardship, social equality, and economic prosperity – is imperative, and private-sector capital is its cornerstone. Private-sector capital still has fiduciary responsibilities. Profitability is necessary for sustained impact. The Triple Bottom Line. People, Planet, AND Profit.

More importantly, you. I value your investment in Smartkarma research, and commit to Insights worthy of your time and money. That means giving ASEAN ESG the attention it deserves, and with Insights that are substantive and differentiated; the intersection of material and under-covered. You can expect investigative research into emergent ESG issues; data-driven analyses of deals (pre-IPO ESG research, ESG-focused M&A consequence analyses, etc.); and trading-oriented ideas like ESG short selling and playing ESG index constituency changes.

I bring both ESG expertise and traditional investing experience, as well as some rather unique perspectives on ESG (a lesson in governance from Enron, anyone?). I spent the last decade exclusively on ESG, researching links to equity returns, credit ratings, cost of capital, and yield spreads. I also contributed to ESG reporting standards (SASB and GRI), and the MBA curriculum (Impact Investing) at the Kellogg School of Management. Previously, I was an Institutional Investor and Wall Street Journal All-Star sell-side analyst at J.P. Morgan.

Please, feel free to contact me about anything.

Cannabis Stocks: Some of the More ESG-Friendly Stocks in This Budding Industry

As marijuana legalization continues to spread across the globe, related investment opportunities – i.e., "pot stocks," "weed stocks," or as I prefer "legal cannabis stocks" – become harder to ignore.Historically just a bunch of volatile penny stocks on second-tier exchanges, but now the industry leaders boast market capitalisations of US$5-10 billion; large enough for ESG index inclusion.Even investors uninterested in direct cannabis investment opportunities could find that they have indirect exposure via issuers in other industries (e.g., beverages, agriculture) getting involved.Regardless, the cannabis industry is an ESG investing conundrum, with limited discussion thus far and little consensus within that limited discussion. Cannabis is a truly emergent ESG issue.This Insight addresses the primary ESG considerations vis-à-vis the emerging legal cannabis space and investing therein. Specifically, it covers two broad categories of ESG considerations:<ol>
<li>
Classification: The debate about cannabis as another "sin stock" for exclusionary screens.</li>
<li>
ESG Concerns: Top ESG concerns (mainly Environmental), regardless of its classification.</li>
</ol>

As marijuana legalization continues to spread across the globe, related investment opportunities – i.e., "pot stocks," "weed stocks," or as I prefer "legal cannabis stocks" – become harder to ignore.Historically just a bunch of volatile penny stocks on second-tier exchanges, but now the industry leaders boast market capitalisations of US$5-10 billion; large enough for ESG index inclusion.Even investors uninterested in direct cannabis investment opportunities could find that they have indirect exposure via issuers in other industries (e.g., beverages, agriculture) getting involved.Regardless, the cannabis industry is an ESG investing conundrum, with limited discussion thus far and little consensus within that limited discussion. Cannabis is a truly emergent ESG issue.This Insight addresses the primary ESG considerations vis-à-vis the emerging legal cannabis space and investing therein. Specifically, it covers two broad categories of ESG considerations:

Classification: The debate about cannabis as another "sin stock" for exclusionary screens.

ESG Concerns: Top ESG concerns (mainly Environmental), regardless of its classification.


Cannabis Stocks: ESG Considerations for a Budding Industry

Canopy Growth

Cannabis Stocks: ESG Considerations for a Budding Industry