Socially Responsible Fund Assets Increase
For the first time since 2022, socially responsible investments saw net inflows of $3 billion during the second quarter, the first quarterly increase in 14 quarters. The gain is occurring among index funds and is largely attributed to increased interest in renewable energy and divestment from fossil fuels, as reported by Morningstar.
DEI Helps Financial Performance
While many companies scaled back their corporate diversity, equity, and inclusion (DEI) initiatives, a recent University of California, Berkeley, study, Markets Do Not Punish Firms for Maintaining DEI, found that “companies that kept their DEI programs in place performed at least as well financially as companies that ended DEI efforts. Large corporations appear to have folded under pressure for no financial gain.”
Quarterly Corporate Reporting Defended
The Security and Exchange Commission’s Investor Advisory Committee issued a final statement concluding that “the SEC should not eliminate its quarterly reporting mandate for public companies, as doing so would deprive the markets of timely, material information, and thereby undermine informed investor decision making and the efficient allocation of capital among public companies.”
Renewable Energy Investing in Africa
African Frontier Capital celebrated a green bond issuance on the London Stock Exchange. The bond supports 4.3 million solar home systems across Sub-Saharan Africa. Calvert Impact Capital, owned by most Natural Investments clients, participated in the offering.
Governance Dominates Shareholder Proposals
The 2026 proxy season saw a 20% decrease in shareholder proposals filed, with 32% fewer environmental and 37% fewer social proposals than the previous year, ESG Dive reports. Governance proposals comprised half of the 622 proposals filed, though only 33% of them received favorable votes.