Story of the Week: July 2022

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July 30, 2022 - For social good, S&P beats ESG
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July 30, 2022 - For social good, S&P beats ESG

For social good, S&P beats ESG by Matthew Lau Appeared in The Financial Post on July 27, 2022 Gina's Thoughts "ESG-friendly quarters such as public universities have committed to divesting their portfolios of fossil fuel companies. Public pension plans, including the Canada Pension Plan and Quebec Pension Plan, are also committed to ESG. ESG investing may be all the rage, but it is an outrage that public pension plans are pursuing it: they have a fiduciary duty to the people whose money they manage and their mandate is to invest it to achieve the best risk-adjusted financial returns. Their adoption of ESG investing is contrary to this mandate." Oil and Gas companies are paying out large dividends to their shareholders, and the one year return for the S&P/TSX Capped Energy Index is 91.7%. They adhere to high standards of governance, provide well-paying jobs, contribute billions to the government coffers, are innovative, and produce some of the cleanest oil and gas in the world. As Matthew Lau writes, "If you want to be socially responsible with your investing, there is no need to go for the expensive ESG funds. The S&P 500 ETF is perfectly fine."
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July 23, 2022 - Energy crisis prompts ESG rethink on oil and gas
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July 23, 2022 - Energy crisis prompts ESG rethink on oil and gas

Energy crisis prompts ESG rethink on oil and gas by Chris Flood Appeared in The Financial Times on July 18, 2022 Gina's Thoughts "Governments and companies are scrambling to balance their green ambitions with the new imperatives of energy security. The conflict in Ukraine has prompted discussion about the role of oil and gas producers in investors' portfolios." In the face of an energy crisis, ESG investors are starting to look more favourably on energy companies. "We believe (some) ESG funds are revisiting the cost of exclusion (of energy companies) given their underperformance in the first half of 2022," says an ESG strategist at BofA. The cost of exclusion (otherwise known as divestment) is now tangible and measurable, so ESG investors/funds are trying to flip the story by saying it is now ESG-friendly to invest in oil and gas companies because these companies have been investing in new emissions-reducing technologies since 2015. This is what InvestNow has been saying all along. Investment in Canadian oil and gas companies does more to reduce emissions than divestment. Investment in Canadian oil and gas companies helps everyday Canadians, Canada and the world.
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July 2, 2022 - The critical need for a comprehensive strategy for North American energy independence
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July 2, 2022 - The critical need for a comprehensive strategy for North American energy independence

The critical need for a comprehensive strategy for North American energy independence by Derek H. Burney Appeared in the National Post on June 28, 2022 Gina's Thoughts Happy Canada Day! InvestNow thought this article was appropriate for Canada Day weekend as it calls for a comprehensive strategy for North American energy independence. Canada could play a huge role in assuring this. "Regrettably, the Canadian government is oblivious to the value of a sector of our economy producing resources and derivatives upon which modern civilization depends." Oh Canada!
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