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: ESG Considerations for a Budding Industry

Innovative Industrial Properties (IIPR US)

In <a href="https://www.smartkarma.com/insights/cannabis-stocks-esg-considerations-for-a-budding-industry" target="_blank" data-smartkarma-citation="insights:56947" rel="noopener">Cannabis Stocks: ESG Considerations for a Budding Industry</a>, I addressed ESG considerations related to the legal cannabis industry. The cannabis industry is an emergent subject of debate in ESG circles, and a real conundrum from an ESG perspective. That Insight covered two aspects:<ol>
<li>
Classification: Whether cannabis stocks should be considered "sin stocks" (along with alcohol, gambling, adult entertainment, and tobacco). This is the crux of most discussions to date, and primarily affects exclusionary screening typical of socially-responsible investing (SRI).</li>
<li>
ESG Concerns: Regardless of classification, the cannabis industry presents a multitude of ESG concerns relevant to general ESG investing. Environmental concerns dominate, and are mostly negative. Social and Governance issues are more balanced, and more company-specific.</li>
</ol>This Insight takes that conversation a step further, assessing the current cadre of cannabis-related stocks and identifying the most ESG-friendly among them. It is a subjective assessment, albeit one based on generally accepted criteria (based on the little discourse the ESG world has held so far).

In Cannabis Stocks: ESG Considerations for a Budding Industry, I addressed ESG considerations related to the legal cannabis industry. The cannabis industry is an emergent subject of debate in ESG circles, and a real conundrum from an ESG perspective. That Insight covered two aspects:

Classification: Whether cannabis stocks should be considered "sin stocks" (along with alcohol, gambling, adult entertainment, and tobacco). This is the crux of most discussions to date, and primarily affects exclusionary screening typical of socially-responsible investing (SRI).

ESG Concerns: Regardless of classification, the cannabis industry presents a multitude of ESG concerns relevant to general ESG investing. Environmental concerns dominate, and are mostly negative. Social and Governance issues are more balanced, and more company-specific.
This Insight takes that conversation a step further, assessing the current cadre of cannabis-related stocks and identifying the most ESG-friendly among them. It is a subjective assessment, albeit one based on generally accepted criteria (based on the little discourse the ESG world has held so far).

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