It appears much of the backlash and political vitriol aimed at ESG standards and investing is calming a bit. But there’s no telling when those flames could be reignited.
In what could be good news for ESG ETFs like the Invesco ESG Nasdaq 100 ETF (QQMG), corporate boards at large companies, including some QQMG member firms, are bolstering sustainability and ESG credentials.
As reported by Tenise Whelan of Fortune, the 2023 update of the NYU Stern Center for Sustainable Business (CSB) report indicates 89 companies that are Fortune 100 firms have sustainability committees, or more than quadruple the amount seen in the previous five years. That could be sign that large corporations are prioritizing ESG and sustainability. They may be standing ready to refute criticism that they’re just “talking the talk” on those fronts.
Sustainability Credentials Increasing Among Directors
Improving sustainability credentials among the Fortune 100 boards is meaningful. That’s because last year, those companies generated over $18.1 trillion in combined sales. And they employed north of 30.4 million people.
“This is about improving corporate management and financial performance. As such, it is the obligation of management and the board leadership to educate the full board and bring on members who can help the organization successfully navigate sustainability cross-currents,” according to Fortune.
QQMG holds shares of 94 companies, a fair amount of which are also Fortune 100 firms. Nine of the top 50 Fortune 100 companies are held by QQMG. That group includes Amazon (AMZN), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOG) and Facebook parent Meta Platforms (META).
That’s just a handful of examples. But they’re indicative of QQMG member firms living up to the fund’s stringent ESG standards while prioritizing sustainability. A case can be made that the corporations mentioned above and other QQMG holdings are ready to “walk the walk” when it comes to sustainability. Some have already been doing just that. There’s still work to be to done, but it appears some QQMG holdings are off to strong starts.
“Today’s business environment is increasingly characterized by volatility and disruption. Climate change, worker rights and welfare, geopolitical risk, cyber security, and corruption are just a few of the material sustainability issues that corporate leaders need to manage in order to reduce risk and drive positive financial returns. Engaging corporate boards in that journey will be critical to success,” observed Whelan.
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