Summary
Increasingly investors have begun to realise that financial metrics alone do not necessarily provide them with the best analysis of a company’s future potential. Many factors contribute to a firm’s performance and ignoring them can pay off in the short run but effectively leave a company underinvested or exposed to risk.
 
Responsible Investment brings some of these factors into the investment analysis, typically looking at Environmental, Social and Governance (ESG) issues. Research attempting to discern if ESG factors have a positive impact on financial returns is mixed, though broadly supportive that it does.
 
Tomorrow’s Company is particularly interested in Responsible Investment as we believe these factors will grow in importance. For example, climate change looks set to have a huge impact on markets, affecting prices and creating opportunities for businesses which can react to new problems; a firm that does not take that into account will be exposed to more risk than their balance sheet suggests and will be unlikely to be the leading innovators that meet environmental challenges.

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posted by Mark  on August 21, 2009
Tomorrow’s Company is currently developing a stewardship scorecard to apply to all company boards and shareholders. This is in response to the widespread concern that too many companies – including our banks – failed because of an absence of shareholder engagement and risk management by the directors.As part of this we have developed and applied our own Premiership Stewardship scorecard for clubs currently in the Premiership which you can see in this article.
     

posted by Admin  on December 8, 2009
Press Release.- Washington, DC – December  4, 2009 – Ethical Markets Media (USA and Brazil) and The Climate Prosperity Alliance today launched their Global Climate Prosperity Scoreboard® which tracks private investment in companies growing the green economy globally.  This new, never before reported number, showing $1,248,740,645,993.00 (over $1.248 trillion) in total investment since 2007, indicates how investors and entrepreneurs are leading governments in promoting sustainable growth.  The scoreboard totals investments in solar, wind, geothermal, ocean/hydro, energy efficiency and storage, and agriculture.  We purposefully omitted nuclear, "clean coal," carbon capture and sequestration, and biofuels.  We indicate which investments have been publically announced and committed by major companies for 2010 and beyond.
     

posted by Admin  on June 4, 2009
Our two main recommendations are to reword and extend the Combined Code so that it truly encompasses the responsibilities of investors alongside those of boards and better reflects cultures, values and behaviours in the assessment of risk and allocation of rewards 
     

posted by Admin  on October 20, 2009
Marking the 20th Anniversary of SRI in the Rockies offers more than an opportunity to review the hard-won progress of investors to prove that socially responsible investing is viable and now clearly out-performs traditional mainstream investing.  Since the credit crises of 2008-2009, we can now assert with confidence that investing for long-term sustainability and taking ESG factors as material to asset valuation could have actually helped avert these crises.   We investors are now winning the paradigm battle and cite the evidence to show that the Efficient Market Hypothesis (EMH) is bunk and by the same token show that the Modern Portfolio Theory (MPT), the Capital Asset Pricing Model (CAPM) and, yes, even the sacred tenets of the "rational investor" and the Black-Scholes Merton Options Pricing Model all are part of history.
     

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