Sunday Brunch: what is important for food producers
The key issues for food companies - healthier diets and climate resilient supply changes. Do you really understand where the food companies you are invested in, or involved with, stand on these key issues.
Sunday Brunch: our future forecasts don't need to be precise...
As an investor I would rather be roughly correct than precisely wrong. Or more strictly I would rather be broadly right about the two or three things that really matter to a company, even if it meant that I got everything else wrong.
Thematic Thoughts: Electricity demand management, jargon and investor communication
We often use too much jargon, and as a result instead of informing investors, we just end up confusing them. This is not a good thing at a time when we want more money to come into sustainability solutions.
Sunday Brunch: good companies vs good investments
A bad company does not always make a bad investment. If we want to persuade investors that a low sustainability company is too risky, we need to understand the difference between price & value.
Sunday Brunch: do politicians lead or follow?
Most politicians follow not lead. And so we need to think less about our message, and more about if our proposal speaks to the values and aspirations of the wider population.
Sunday Brunch: why do we have equity markets?
Financial markets exist to provide liquidity, and to enable companies to raise new financial capital. Or do they? Are they more a mechanism to generate financial returns. If so, what might this mean for sustainability.
Thematic Thoughts: How firms adapt to climate change
Do we really think enough about how firms will adapt to climate change. At the risk of sounding defeatist, we are already heading for c. 3 C of global warming. We need companies to prepare = adaption.
Sunday Brunch: investment, buybacks, and CEO tenure
If a CEO knows they might not be in the job for long, they might focus on short term wins over long term value creation. As shareholders we need to be vocal in our support of good investment, even if it has a long payback.
Thematic Thoughts: will Europe hit its EV targets, or do fines beckon? Who really knows?
Estimates of the fines the European automotive companies might need to pay for missing emissions targets vary massively. Understanding the company strategies is key, but for this we need better disclosure.
Sunday Brunch: profits, buybacks and sustainability
High levels of share buybacks are often quoted as evidence that companies can afford sustainability investments. But the link is poor and better measures, such as profit margins and ROIC are available.
Thematic Thoughts: wine, cognac, sustainability and financial risk
Grape growers face material climate change risk, in terms of temperature increases, water shortages and climate volatility. Companies are starting to disclose some information on their responses, but we need to dig deeper.
Sunday Brunch: proxy voting should be part of engagement and value creation.
Proxy voting can be made better. This is important for all investors. Two foundations should be, better linking voting outcomes to long term value creation, and making proxy voting an integral part of the corporate engagement process.
