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.

ThaiBev: A Quick Run Through Fundamentals as ThaiBev Pushes Ahead with the Beer Business IPO

ThaiBev: Unwinding of Holdco Discount Is Possible as ThaiBev Prepares to IPO the Beer Business

At US$2 billion give-or-take, ThaiBev's float of 20% of its regional beer business ("BeerCo") will be the largest IPO on the Singapore Exchange in nearly a decade – that much we have all heard – but the deal will also raise the average ESG rating of SGX's listed issuers.I'm not sure what that average ESG rating is exactly, but it's definitely going up.Putting a brewery under the ESG microscope usually doesn't end well. For one thing, beer's carbon footprint is substantial, not to mention the issue of water consumption. Then, there are those two elephants in the room – alcohol, and socially-responsible investing.Somehow, despite all that, BeerCo looks relatively good under the ESG microscope.To be clear, BeerCo faces a few Social-pillar issues. Minor issues, such as the two highest per-capita alcohol consumption rates in Southeast Asia, and that whole Fifth Precept thing with Thailand's de facto religion. Plus, a host of laws to curb consumption and all of its socio-economic ills.An important distinction, however, is that those negative aspects of BeerCo's ESG story are mostly  circumstantial – i.e., external and beyond management control – whilst positive elements can be traced back to proactive Corporate Social Responsibility (CSR) policies and actions.It's not perfect, but by all indications thus far, BeerCo will rank among the world's more sustainable brewery stocks, even outperforming some of the sector's big-name "sustainability leaders."

At US$2 billion give-or-take, ThaiBev's float of 20% of its regional beer business ("BeerCo") will be the largest IPO on the Singapore Exchange in nearly a decade – that much we have all heard – but the deal will also raise the average ESG rating of SGX's listed issuers.I'm not sure what that average ESG rating is exactly, but it's definitely going up.Putting a brewery under the ESG microscope usually doesn't end well. For one thing, beer's carbon footprint is substantial, not to mention the issue of water consumption. Then, there are those two elephants in the room – alcohol, and socially-responsible investing.Somehow, despite all that, BeerCo looks relatively good under the ESG microscope.To be clear, BeerCo faces a few Social-pillar issues. Minor issues, such as the two highest per-capita alcohol consumption rates in Southeast Asia, and that whole Fifth Precept thing with Thailand's de facto religion. Plus, a host of laws to curb consumption and all of its socio-economic ills.An important distinction, however, is that those negative aspects of BeerCo's ESG story are mostly  circumstantial – i.e., external and beyond management control – whilst positive elements can be traced back to proactive Corporate Social Responsibility (CSR) policies and actions.It's not perfect, but by all indications thus far, BeerCo will rank among the world's more sustainable brewery stocks, even outperforming some of the sector's big-name "sustainability leaders."

ThaiBev BeerCo ESG Analysis: Among the World's More Sustainable Brewers Despite Social-Pillar Issues

Thai Beverage

ThaiBev BeerCo ESG Analysis: Among the World's More Sustainable Brewers Despite Social-Pillar Issues