Companies are about to face a big challenge but might not know it. As #GenerativeAI turns to analyze #ESG content, the model's responses may be as confused as employees are. After all, is the company saving the world, saving the company, or a nuanced mix of both?

In this confusion lies an opportunity to clearly define a company's ESG goals beyond its mission statement and public commitments.

Two key points:
🗨️Consistent language must inform the model to be effective
🙌People, as always, sit in the middle of the outcomes

Don't miss the latest!
https://esgadvocate.substack.com/p/generative-ai-may-help-mainstream
#AI #technology #Governance #Language

This past week, we saw the first US Congressional Hearing on #ESG, courtesy of the House Oversight Committee.

Over three hours, it was clear that both parties were talking past each other as ESG is ill-defined, confusing, and full of nuance. However, at the center of the conversation was the definition of fiduciary.

While the hearing was largely reported as a disjointed mess, a few callouts are worth examining....and for #FinancialServices firms, I predict this is a precursor of things to come.

To learn more, check out my latest newsletter and remember to subscribe!
https://esgadvocate.substack.com/p/overseeing-esg-means-defining-it

While I’m enjoying asking Bing Chat and ChatGPT questions, it is becoming more obvious that these tools aggregate the surface headlines well, but miss the deeper analysis.

For example, if you were to ask these tools if Warren Buffett likes ESG, you will hit the headline answer of ‘No.” I don’t think it’s that simple, though.

Coming tomorrow, my analysis on how Governance is actually the reason ESG pressures aren’t making headway at Berkshire Hathaway. Don’t miss it!

https://esgadvocate.substack.com

Coming tomorrow: The Great Disclosening!

Sign up now to question the value of disclosures against the mountain of work to do next 👀
#ESG #sustainablity #climatechange
https://esgadvocate.substack.com

If you're trying to build an internal ERG for #sustainability, check out this practical guide from the person who did it here (I'm at Microsoft)!

https://techcommunity.microsoft.com/t5/green-tech-blog/the-critical-role-of-employee-sustainability-communities-and-how/ba-p/3795108

For #ESG, values can drive value at the intersection of materiality. Still, there's a connotation that we're talking about certain values, typically things like #inclusion and #equity

Unfortunately, not all stakeholders share these values. This begs the question if other stakeholder values can drive value, especially those built around conservative anti-ESG efforts.

Don't miss the latest, where I cover conservative business models, stakeholder engagement, and risk from GloriFi to Parler to Fox News!

https://esgadvocate.substack.com/p/can-stakeholder-outrage-deliver-value

Last week, #AI researchers, technologists, and all-too-famous business personalities published and signed a letter asking for a six-month moratorium on more powerful AI development.

There's a lot written about this letter and its counterpoints, so I decided to look at it from an #ESG perspective.

The important takeaway for companies is a reminder that #technology is an ESG risk and opportunity and needs to be approached with the same high-quality #Governance as any powerful project.

Find out more here!
https://esgadvocate.substack.com/p/chatesg-ii-just-push-pause
#ResponsibleAI #OpenAI #ChatGPT #LLM #GenerativeAI

BlackRock's rumored move of $4B funds from its iShares ESG Aware MSCI USA ETF (ESG fund) to its iShares MSCI USA Quality Factor ETF (non-ESG fund) looks coincidentally timed with last week's news of MSCI's fund rating adjustments (see my last post).

The two funds have fairly close annual returns, with the non-ESG fund slightly outperforming the other by around 2% this year.

I'd be remiss not to call out the long-term returns of an ESG investment vs. its peer. The ESG fund outperforms by several percentage points over 3 and 5 yrs. (by 5% and 8%, respectively).

As you would expect the ESG fund is rated just slightly higher at AAA, while the non-ESG fund is rated AA.

We've heard that fund ratings will be adjusted. It will be curious to see if more news is released around this.

https://www.ft.com/content/cb57eb93-d8ef-41e9-b238-fd802aa13f1e

This week's newsletter is a short read about a potentially impactful change in how MSCI rates funds, including:

🔍How I look at the MSCI fund ratings
⚖️A bit on SFDR and clear communications
🔮What might these changes do?

For fund managers, there might be an opportunity brewing.

https://esgadvocate.substack.com/p/is-esg-clarity-about-to-hit-the-markets

#ESG #Investing #ETFs #ESGRatings #Data #FinancialServices

There are a LOT of sustainability jobs out there.

Well, maybe. Do you consider carbon accounting a sustainability job? If so, you are in luck!

Still, many are looking to find meaningful work and fulfill a sense of purpose through impact. What they find is a world obsessed with carbon metrics. While reporting is necessary, is not what they expected.

What can be done about the sustainability talent gap and job seekers' expectations? Also, why is an ESG newsletter writing about sustainability disclosures anyway?

Click here to find out!
https://esgadvocate.substack.com/p/help-wanted-sustainability-disclosures
#ESG #Sustainability #Careers #Jobs #Disclosures #Regulations #ClimateChange #Impact #Accounting