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.

In the last few months, there has been a spate of mergers and coalitions in the sustainability/ESG reporting landscape. Most recently, the announced merger of International Integrated Reporting Council (IIRC) and Sustainability Accounting Standards Board (SASB), but there are others.
Intuitively, this activity seems like a good thing. Intentions behind the "deals" are universal; to fix the fragmented sustainability/ESG reporting ecosystem, simplify corporate reporting, and advance sustainable investing and finance. Lack of consistency is the main hindrance to further adoption.
Conversely, there is real chance that all of this activity makes matters worse; more confusing, and sure to break a bunch of financial models. I think there is a very good chance of "worse," but I also believe that it will be short-lived and well-worth the short-term pain for the long-term gain.
One step back, then two steps forward.

In the last few months, there has been a spate of mergers and coalitions in the sustainability/ESG reporting landscape. Most recently, the announced merger of International Integrated Reporting Council (IIRC) and Sustainability Accounting Standards Board (SASB), but there are others.
Intuitively, this activity seems like a good thing. Intentions behind the "deals" are universal; to fix the fragmented sustainability/ESG reporting ecosystem, simplify corporate reporting, and advance sustainable investing and finance. Lack of consistency is the main hindrance to further adoption.
Conversely, there is real chance that all of this activity makes matters worse; more confusing, and sure to break a bunch of financial models. I think there is a very good chance of "worse," but I also believe that it will be short-lived and well-worth the short-term pain for the long-term gain.
One step back, then two steps forward.

"M&A" Activity Amongst Sustainability/ESG Reporting Organisations Might Be a Good Thing, Maybe Not

MSCI Inc

"M&A" Activity Amongst Sustainability/ESG Reporting Organisations Might Be a Good Thing, Maybe Not