In recent years, we have seen more and more companies from Europe and the UK choose a cross-listing in the US or move their listing across the pond entirely.
There is no magic green button. If ESG ratings are sold or (mid)used as such, you won't get a good or consistent outcome. So you're right to be sceptical. Useful as a sense check when analysing a company, but never as a decision making tool.
Europe has gone too far and the US has hardly done anything. High time the US adopts minimum transparency regulation, which the SEC tries to do. But that the SEC for example doesn’t require scope 3 emission transparency is ridiculous in my views
Lots and lots of demand from US investors for sustainable and positive impact investing in my experience. It's a bit of a misnomer that there isn't. Providing carrots (tax breaks etc.) rather than sticks (taxes and fines) for companies tends to work better in the US. 'Big government' tends to be more welcome when it is a friend.
Re re-listing / dual listing.. I think the part of that trade non-US companies often forget to factor in when they chase a higher multiple (especially in smid cap land) is increased volatility. Much faster money. Would be interesting to see a study on that.
Carbon taxes: yes
ESG ratings: very sceptical. Have they ever done any real good?
There is no magic green button. If ESG ratings are sold or (mid)used as such, you won't get a good or consistent outcome. So you're right to be sceptical. Useful as a sense check when analysing a company, but never as a decision making tool.
You think Europe has gone too far but "High time then that the US introduces ESG regulation and carbon taxes equivalent to European standards."?
Alternately, Europe has gone too far & fortunately the US has not, at least not yet.
Europe has gone too far and the US has hardly done anything. High time the US adopts minimum transparency regulation, which the SEC tries to do. But that the SEC for example doesn’t require scope 3 emission transparency is ridiculous in my views
Lots and lots of demand from US investors for sustainable and positive impact investing in my experience. It's a bit of a misnomer that there isn't. Providing carrots (tax breaks etc.) rather than sticks (taxes and fines) for companies tends to work better in the US. 'Big government' tends to be more welcome when it is a friend.
Re re-listing / dual listing.. I think the part of that trade non-US companies often forget to factor in when they chase a higher multiple (especially in smid cap land) is increased volatility. Much faster money. Would be interesting to see a study on that.