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.

Synergy Grid & Development Philippines / ESG

Synergy Grid & Development Philippines (SGP PM)

The National Grid Corporation of the Philippines (NGCP) – the operator of the country's electricity transmission system – is reportedly preparing for an IPO of at least US$1 billion, valuing the utility at US$5 billion or more. It would be the largest IPO in Philippine Stock Exchange (PSE) history.Reportedly. Possibly. An "imminent" IPO has come and gone several times in recent years, so there is no sense holding one's breath. However, this time feels different; there are new reasons to think it might happen. Perhaps not in February as has been suggested, but months not years.Ergo, this Insight. My pre-pre-IPO ESG analysis of NGCP. That extra "pre" prefix suggests a follow-up when an IPO is official. Though this Insight is thorough for a pre-pre-IPO analysis, some issues warrant a deeper dive, when a listing is officially imminent, and real money is on the table.I would have preferred a neutral rating for NGCP, but given a binary choice (bullish or bearish), the decision was clear. Despite compelling long-term ESG positives (I can even envision an upgrade in the future), there is just too much near-term uncertainly to stick one's neck out this early.

The National Grid Corporation of the Philippines (NGCP) – the operator of the country's electricity transmission system – is reportedly preparing for an IPO of at least US$1 billion, valuing the utility at US$5 billion or more. It would be the largest IPO in Philippine Stock Exchange (PSE) history.Reportedly. Possibly. An "imminent" IPO has come and gone several times in recent years, so there is no sense holding one's breath. However, this time feels different; there are new reasons to think it might happen. Perhaps not in February as has been suggested, but months not years.Ergo, this Insight. My pre-pre-IPO ESG analysis of NGCP. That extra "pre" prefix suggests a follow-up when an IPO is official. Though this Insight is thorough for a pre-pre-IPO analysis, some issues warrant a deeper dive, when a listing is officially imminent, and real money is on the table.I would have preferred a neutral rating for NGCP, but given a binary choice (bullish or bearish), the decision was clear. Despite compelling long-term ESG positives (I can even envision an upgrade in the future), there is just too much near-term uncertainly to stick one's neck out this early.

National Grid Corporation of the Philippines: Pre-IPO Uncertainty Eclipses Positive Long-Term Story