Many investors shared their latest thoughts on the ESG topic in Q1 and early Q2. Key takeaways include:
*Blackrock, one of if not the biggest proponent of ESG investing, published an annual message last quarter that reinforced Blackrock’s core mission, which is to deliver superior returns for their investing clients. After some voicing views that perhaps the money manager had leaned too far forward in highlighting the importance of ESG considerations in their security selection process, many viewed the reiteration of their core mission of delivering returns as a nuanced refinement of the strong emphasis on ESG that has characterized the firm’s stance on this topic over the past few years.
*It appears unlikely that the SVBs, Signature Bank’s and First Republic Banks’ failures are the beginning of widespread contagion, but it is worth noting that sharp rises in interest rates have often led to catastrophic economic consequences: The S&L crisis in the 1980s and early 1990s, and the Orange County bankruptcy in 1994 to name two.