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.

U.S. ESG Regulation Expected By Year-End; SEC to Mandate Climate/ESG Disclosure By Listed Companies

During the 2020 U.S. Presidential Election and transition (August 2020 through February 2021), I published a series of Insights on the likely U.S. sustainability/ESG policies under various election outcome scenarios. Too many Insights to list, but the following are representative examples:<ul>
<li>
<a href="https://www.smartkarma.com/insights/u-s-elections-a-biden-win-would-be-a-win-for-esg-investing-and-sustainable-finance" target="_blank" data-smartkarma-citation="insights:44503" rel="noopener">U.S. Elections: A Biden Win Would Be a Win for ESG Investing and Sustainable Finance</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/u-s-elections-a-biden-win-would-include-reversing-trump-s-anti-esg-handiwork" target="_blank" data-smartkarma-citation="insights:44764" rel="noopener">U.S. Elections: A Biden Win Would Include Reversing Trump's Anti-ESG Handiwork</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/biden-making-good-on-major-environmental-promises-new-sec-is-more-esg-focused" target="_blank" data-smartkarma-citation="insights:48662" rel="noopener">Biden Making Good on Major Environmental Promises: New SEC Is More ESG-Focused</a> </li>
</ul>Since then, I have not written much about ESG in the U.S., for two reasons: 1) the interesting ESG activity in Asia stole my attention, and 2) there was little worth writing about here. Early in 2021, there were a few events – individually important, but too isolated to be collectively substantive.That changed in the last month, as the Biden administration's climate agenda manifested itself in several areas, not the least of which is ESG disclosure – ESG disclosure legislation in Congress, and ESG disclosure regulation at the U.S. Securities and Exchange Commission (SEC). This Insight is a brief update on the ESG disclosure legislation working its way through Congress, notably House Bill 1187 (H.R.1187), the "ESG Disclosure Simplification Act." H.R.1187 is likely dead on arrival in the Senate (too much Republican opposition), but it heralds more to come.It is the proverbial tip of an iceberg.

During the 2020 U.S. Presidential Election and transition (August 2020 through February 2021), I published a series of Insights on the likely U.S. sustainability/ESG policies under various election outcome scenarios. Too many Insights to list, but the following are representative examples:

U.S. Elections: A Biden Win Would Be a Win for ESG Investing and Sustainable Finance 

U.S. Elections: A Biden Win Would Include Reversing Trump's Anti-ESG Handiwork 

Biden Making Good on Major Environmental Promises: New SEC Is More ESG-Focused 
Since then, I have not written much about ESG in the U.S., for two reasons: 1) the interesting ESG activity in Asia stole my attention, and 2) there was little worth writing about here. Early in 2021, there were a few events – individually important, but too isolated to be collectively substantive.That changed in the last month, as the Biden administration's climate agenda manifested itself in several areas, not the least of which is ESG disclosure – ESG disclosure legislation in Congress, and ESG disclosure regulation at the U.S. Securities and Exchange Commission (SEC). This Insight is a brief update on the ESG disclosure legislation working its way through Congress, notably House Bill 1187 (H.R.1187), the "ESG Disclosure Simplification Act." H.R.1187 is likely dead on arrival in the Senate (too much Republican opposition), but it heralds more to come.It is the proverbial tip of an iceberg.

U.S. ESG Legislation (H.R.1187) Unlikely to Survive the Republican Senate But There Is More to Come

MSCI Inc

U.S. ESG Legislation (H.R.1187) Unlikely to Survive the Republican Senate But There Is More to Come