Environmental, Social, and Governance: ESG Truth or Tale?

February 16, 2023
1:00 PM - 2:00 PM ET
Webcast

ESG (Environmental, Social, and Governance) investing is becoming increasingly popular, as more investors recognize the potential financial benefits of considering a company's environmental and social impact in addition to its financial performance. However, there are also a number of issues that have arisen with ESG investing.

Our event will discuss a few of the many issues that have arisen with ESG investing. However, it's important to note that as the ESG investing field matures and more data and guidelines become available, these issues may be addressed. However, we think that the playbook that is being written can not be is incomplete and needs to take in points of view from a diverse section of stakeholders, not just financial professionals.

The Securities and Exchange Commission (SEC) is the primary federal regulator of securities markets in the United States. The SEC has not established specific regulations or guidelines for ESG investing, but it has issued guidance to companies and investment advisers regarding their disclosure of ESG-related information.

In February 2020, the SEC issued interpretive guidance that addresses the application of existing SEC rules and regulations to climate change-related disclosures by companies, in particular, “in the context of their business and their financial condition, including how their businesses and financial condition may be impacted by climate change risks and how companies are managing those risks.”

The SEC also clarified that ESG disclosures and performance should not be misleading or inconsistent with other financial disclosures to the SEC, and that companies should be consistent in the way they report their ESG data and performance.

As for investment advisors, SEC has provided guidance stating that Advisers to investment companies, should consider how Environmental, Social, and Governance (ESG) factors may be relevant to the fund’s investment goals and strategies, and how they would integrate such considerations into their investment process.

In summary, while the SEC has not established specific regulations for ESG investing, it has issued guidance that companies and investment advisers should be transparent and consistent in their disclosure of ESG-related information and not making misleading claims.

  • What should be our guiding star as we evaluate profits & people?
  • Lack of standardization: There is currently no widely agreed upon set of guidelines for what constitutes "good" or "bad" ESG performance, which can make it difficult for investors to accurately compare the ESG performance of different companies.
  • Lack of transparency: Some companies may make claims about their ESG performance without providing enough detail to allow investors to independently verify those claims.
  • "Greenwashing": Some companies may make superficial changes or make misleading claims about their ESG performance in order to appear more environmentally friendly than they actually are.
  • Lack of data availability: not all companies provide a comprehensive and consistent data set to evaluate on ESG performance.
  • Conflicting interests: as there are different investors, companies, and regulators involved in ESG , this creates many conflicting interest, and it is hard to align them all to have a common objective.
  • Limited performance history: ESG strategies are a relatively new investment area, so there is less historical data available to assess the long-term performance of these strategies.

Speakers

  • Michael Corcelli

    Title
    Founder & Chairman
    @
    Company
    FLAIA
    Role
    Speaker

    Mr. Corcelli is the Founder & Chairman of the FLAIA and has played a critical role in establishing the vision and building the management team for the FLAIA. In addition to his work with the FLAIA, he is a Managing Partner at Alexander Alternative Capital, LLC based in Miami. Prior to joining Alexander Alternative Capital, Michael worked for UBS AG where he was responsible for portfolio management and tactical asset allocation for private clients of UBS Global Wealth Management & Business Banking. Michael holds a Bachelor of Science degree from the University of Miami where he studied Business with a focus in Finance.

  • Jeremy Johnson

    Title
    Digital Growth Master
    @
    Company
    FLAIA
    Role
    Speaker

    Jeremy has 10+ years of experience as a lead web developer with a demonstrated history of working in the media production industry. As the head of FinTech/Web Development of FLAIA, Jeremy is responsible for hosting digital events, managing the website and onboarding new technological solutions for FLAIA members and community. He has previous experience in state level government legislative policies where he partook on various consulting projects for state elected officials on new/emerging technology.

    Since the early 2017, Jeremy has been a strong believer of Blockchain Technology and has been investing in the space ever since. He is a DeFi user and has been supporting the Blockchain community by being a host & moderator for various Blockchain & Cryptocurrency panels and Q&A sessions and spreading its impact to the alternative investment community around the globe.

  • James Trapp

    Title
    President
    @
    Company
    Star Human Capital LLC
    Role
    Speaker

    James is a keynote speaker, author, and strategic advisor to individuals and organizations.

     His mission is to inspire people to unleash the highest version of themselves, so they achieve their most audacious personal and organizational goals.

     James has culled from his various careers - CEO of an international nonprofit, trial attorney, and spiritual leader - a diverse set of skills that have coalesced to give him a unique perspective to support:

    • Executives seeking to up-level their leadership game

    • Leaders and managers who want to create highly effective teams in our increasingly diverse and global workplaces

    • Speakers – whether inexperienced or seasoned – intent on becoming influential communicators.

    The foundational piece of all his work it to create the right mindset. With our world undergoing one of the most significant paradigm shifts in contemporary history, technical expertise and know-how is crucial but insufficient to navigate this change. A transforming mindset is essential to traverse today’s complex, fast-paced, diverse, and global marketplace.

    By applying mindset principles, James has been able to:

    • Develop the ability to see the best in people in their worst of circumstances

    • Inspire a core group of people to grow a stagnant nonprofit community and 4X its membership and 10X its annual revenue

    • Up-level leadership skills to rebrand and refocus a sprawling international non-profit association by applying the principles of Enlightened Leadership and creating highly effective teams

    • Go from being someone who avoided public speaking become one of the most effective speakers in his field. This journey not only helped him develop the tools needed to become a sought-after inspirational speaker but also well served him to coach others to improve their leadership and communication skills vastly.

    James has a bachelor’s degree in Economics from Princeton University, a Law Degree from the University of Florida, and a Master's in Theology from Unity Institute.

About

FLAIA

FLAIA is an open access platform of alternative investments for institutions, wealth advisors, family offices, RIAs, and accredited investors. General Partners gain access to a vertically integrated digital & traditional fintech marketplace. Investors gain access to special opportunities, educational webcasts and digital events. All of our digital events, educational content and alternative investment opportunities are available in one place under a single sign on.

Star Human Capital LLC

Star Human Capital uses 21st Century personal development tools to help leaders live with purpose, manage stress, and unleash the highest version of themselves to achieve their most audacious personal and organizational goals.