What's Happening

By Mary Minette, 
Consultant, Mercy Investment Services

The pillars of environmental, social, and governance (ESG) form a basis for responsible investing that prioritizes the long-term health of our economy, societies, and planet. This has been a key component of the approach of the Portfolio Advisory Board (PAB) since its inception as an important expression of alignment between the investments and the mission of the Adrian Dominican Sisters. 

As ESG investing has grown as a share of the overall market, an anti-ESG movement has developed among some politicians and state treasurers, who decry such investments as “woke” capitalism. 

New legislation in some states prohibits state contracts and investments with investment firms that use environmental or social indicators to inform investment decisions. Sometimes, government entities may not enter contracts for goods or services without written verification that the vendor will not boycott fossil fuels. Legislation of this nature has been introduced in 37 states, targeting investors who have made climate commitments.  

In July, the US House of Representatives Financial Services Committee held a series of hearings called “ESG Month” that targeted ESG investors. They introduced bills designed to curtail social and environmental investment and the regulatory powers of the Securities and Exchange Commission to allow for greater disclosure of ESG information. None of these bills is expected to move to the Senate during this session of Congress, but they represent a disturbing trend that would curtail the ability of investors to choose how and where they invest.

In early June, the PAB joined 77 fellow Interfaith Center for Corporate Responsibility members in a letter asking members of Congress to publicly speak out against these anti-ESG campaigns and efforts to derail environmental and social progress resulting from shareholders’ efforts. The letter encourages members of Congress to advocate for prudent, non-partisan investment practices and to consider the financial damage to state and municipal pension funds due to the anti-ESG legislation. 

The PAB will continue to advocate for the importance of addressing these factors in investing and engagement. 

August 10, 2023, Pampanga, Philippines – Adrian Dominican Sisters of Our Lady of Remedies Mission Chapter, based in the Philippines, are making plans to address the dire needs of the people in Central Luzon, Northern Luzon, and other areas of the country in the wake of floods caused by Typhoons Egay and Falcon.

Sister May Cano, OP, who ministers in the Diocese of Kalookan in metro Manila, recounted the people’s suffering in the Philippines due to the El Niño weather pattern of drought and floods. “I learned that El Niño is characterized by drought and followed by many typhoons with heavy or strong rains,” she said. The farmers suffered from the drought until the heavy rains began on July 12, 2023. Super Typhoon Egay brought flooding to many providences, including Central Luzon and Northern Luzon. 

“After a week, farmlands were damaged by floods, and we expect a lack of supply and inflation of all the commodities,” Sister May said. “Poor people are the most affected.” The government has not responded to the needs of the people, she added.

People in low-lying areas were evacuated to higher ground and less flooding. However, many people are still in danger from the floods, said Sister Kathleen Nolan, OP, Director of the Office of Justice, Peace, and Integrity of Creation. While flooding happens annually in the Philippines during the rainy season, “it creates hardship and is disastrous, especially for the people who are most vulnerable, the poor people,” she said.

Sister May said the Adrian Dominican Sisters in the area plan to distribute food and serve the people affected by the natural disaster in other ways once the water subsides. As of August 3, she said, travel was still restricted because of heavy rains and flooding on the highway. 

“When the water subsides, we will go and visit those who are affected,” Sister May said. “What they need now are rice, canned goods, sugar, coffee, milk, medical care, and other basic needs. These will meet their hunger and alleviate their burdens, especially in this time of turmoil.”

Sister May also requested prayers for the people in her country affected by typhoons and flooding. Concerned people may also donate to disaster relief agencies such as Americares, which works in the Philippines.