By Ross Kerber
Oct 22 (Reuters) - This is the weekly Reuters Sustainable Finance Newsletter, which you can sign up for here .
A good starting place to understand the pushback against the use of environmental, social and governance $(ESG)$ investment considerations is a new book by Robert Netzly, CEO of Inspire Investing and a frequent critic of many corporate social policy forays.
I've linked to my Q&A with Netzly below. It includes a link to an audio recording of our conversation, as I give in to the march of progress. Also in this newsletter: coverage of an EU deforestation law's progress and Japan's first female prime minister.
Please follow me on LinkedIn and/or Bluesky, or reach me via ross.kerber@thomsonreuters.com
Christian investor Robert Netzly fights "spiritual money laundering"
With $3.6 billion in total assets, Inspire Investing calls itself the world's largest provider of faith-based ETFs. Its fund lineup is aimed at Christian investors and others who share what it calls its "conservative, biblical values." One product is the $344 million Inspire 100 ETFBIBL.P, which holds "biblically aligned large companies" in the U.S. as determined by their scores on issues like whether they produce or distribute abortion drugs or alcohol (bad) or if they responsibly address product-safety issues (good).
In his new book "Biblically Responsible Investing: On Wall Street As It Is In Heaven," Inspire CEO and founder Netzly reviews the firm's history and its rising influence as social conservatives put more focus on business issues.
But Netzly also has criticism for ostensible allies like those who preach a "prosperity gospel" that individuals should desire to become rich.
You can read key points of my interview with Netzly in this week's column by clicking here.
Company news
The European Union's anti-deforestation law would go into effect at the end of 2025, though with a lessened reporting burden for smaller businesses and enforcement delays.
Closely held fund manager Vanguard said it would add three new funds, including its flagship Vanguard 500 Index Fund VOO.P, to its program allowing investors to influence how their ballots are cast at corporate annual meetings.
The two largest proxy advisory firms, ISS and Glass Lewis, have each recommended investors vote against the proposed $1 trillion pay package for Tesla TSLA.O CEO Elon Musk at the electric vehicle maker's annual meeting on November 6, citing governance and value concerns.
On my radar
London-headquartered Tower Peak made its first investments in a set of disabilities-focused companies including Hiki, a dating and friend app aimed at autistic, ADHD and neurodivergent adults. Deal terms were not disclosed but the companies are part of a portfolio valued at around $70 million, in which Tower Peak will hold a minority stake, according to a firm spokesman.
The Federal Reserve and the FDIC joined the Treasury Department's Office of the Comptroller of the Currency in withdrawing interagency principles for climate-related financial risk management, saying existing safety and soundness standards require effective risk management.
Japan's first female prime minister, Sanae Takaichi, has said she was inspired by Britain's late leader Margaret Thatcher but promotes more dovish economic policies.
(Reporting by Ross Kerber in Boston; Editing by Matthew Lewis)
((ross.kerber@thomsonreuters.com; (617) 412 0093;))
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