Alpha-Centric ESG Research

Kyle Rudden

I am an ESG (Environmental, Social, Governance) analyst with an alpha-centric approach to ESG research. After all, ESG investing is, first and foremost, investing. "Alpha-centric" does not mean apathetic, however. Quite the contrary. I believe global sustainability – i.e., environmental stewardship, social equality, and economic prosperity – is imperative, and private-sector capital is its cornerstone. Private-sector capital still has fiduciary responsibilities. Profitability is necessary for sustained impact. The Triple Bottom Line. People, Planet, AND Profit.

More importantly, you. I value your investment in Smartkarma research, and commit to Insights worthy of your time and money. That means giving ASEAN ESG the attention it deserves, and with Insights that are substantive and differentiated; the intersection of material and under-covered. You can expect investigative research into emergent ESG issues; data-driven analyses of deals (pre-IPO ESG research, ESG-focused M&A consequence analyses, etc.); and trading-oriented ideas like ESG short selling and playing ESG index constituency changes.

I bring both ESG expertise and traditional investing experience, as well as some rather unique perspectives on ESG (a lesson in governance from Enron, anyone?). I spent the last decade exclusively on ESG, researching links to equity returns, credit ratings, cost of capital, and yield spreads. I also contributed to ESG reporting standards (SASB and GRI), and the MBA curriculum (Impact Investing) at the Kellogg School of Management. Previously, I was an Institutional Investor and Wall Street Journal All-Star sell-side analyst at J.P. Morgan.

Please, feel free to contact me about anything.

COVID-19 and ESG: Tencent, Alibaba Lead in Coronavirus Aid for Asia Pacific Region

COVID-19 and ESG: European Stocks Just Behind APAC in Coronavirus Aid (Led by BARC, G, ISP, ULVR)

JD.COM Accounting for Investments - Black Holes and Invisible Elephants- Inteqres ESG Bite

JD.com Secondary Listing: Do the Fundamentals Stack Up?

COVID-19: Sectors and Stocks Through the ESG Lens – Internet Retail (JD.com)

COVID-19: A Brutal Lesson in Sustainability and Systemic ESG Risk

Pre-IPO, sort of.The U.S.-listed ADRs (American Depositary Receipts) have traded, as <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com (JD US)</a>, for six years. However, in light of the upcoming initial Hong Kong listing of JD.com and the potential IPO of JD Logistics later this year, I figured that it is about time for a comprehensive ESG assessment.I struggled with this one. Having followed JD.com for a long time, I knew that it is a complex story, but I also felt that I knew the company's major strengths and weaknesses, its highly-sensitive ESG sticking points, and even what the ultimate outcome of this ESG analysis would be.Not even close.There were surprises around every corner, some good some bad, that kept me in suspense until the end. Ultimately, it all came together into a coherent ESG thesis which – despite serious blemishes and major early missteps – is positive and, perhaps more importantly, is constantly improving.Although that improving ESG profile might at first seem like a story of redemption, I do not see it that way. JD.com's ESG story is quite complex. Its trend isn't about recent ESG positives making up for past negatives. It's a strange roller coaster ride of paradoxical ESG ups and downs, trending up.JD.com has always been socially conscious; its corporate social responsibility (CSR) initiatives date back as far as the company itself. Yet somehow, amidst many good achievements, JD.com managed to screw something up now and again. In the past, it was two steps forward and one step back.More recently JD.com has been on a decidedly upward ESG trajectory both in terms of performance as well as investor-oriented ESG transparency and disclosure. It is clear JD.com takes sustainability seriously, and the company is showing a genuine dedication to ESG and overall CSR.Note: JD.com's coronavirus pandemic response was (and continues to be) among the best. I address that in more depth in <a href="https://www.smartkarma.com/insights/covid-19-sectors-and-stocks-through-the-esg-lens-internet-retail-jd-com" target="_blank" data-smartkarma-citation="insights:38993" rel="noopener">COVID-19: Sectors and Stocks Through the ESG Lens – Internet Retail (JD.com)</a>.

 Pre-IPO, sort of.The U.S.-listed ADRs (American Depositary Receipts) have traded, as JD.com (JD US), for six years. However, in light of the upcoming initial Hong Kong listing of JD.com and the potential IPO of JD Logistics later this year, I figured that it is about time for a comprehensive ESG assessment.I struggled with this one. Having followed JD.com for a long time, I knew that it is a complex story, but I also felt that I knew the company's major strengths and weaknesses, its highly-sensitive ESG sticking points, and even what the ultimate outcome of this ESG analysis would be.Not even close.There were surprises around every corner, some good some bad, that kept me in suspense until the end. Ultimately, it all came together into a coherent ESG thesis which – despite serious blemishes and major early missteps – is positive and, perhaps more importantly, is constantly improving.Although that improving ESG profile might at first seem like a story of redemption, I do not see it that way. JD.com's ESG story is quite complex. Its trend isn't about recent ESG positives making up for past negatives. It's a strange roller coaster ride of paradoxical ESG ups and downs, trending up.JD.com has always been socially conscious; its corporate social responsibility (CSR) initiatives date back as far as the company itself. Yet somehow, amidst many good achievements, JD.com managed to screw something up now and again. In the past, it was two steps forward and one step back.More recently JD.com has been on a decidedly upward ESG trajectory both in terms of performance as well as investor-oriented ESG transparency and disclosure. It is clear JD.com takes sustainability seriously, and the company is showing a genuine dedication to ESG and overall CSR.Note: JD.com's coronavirus pandemic response was (and continues to be) among the best. I address that in more depth in COVID-19: Sectors and Stocks Through the ESG Lens – Internet Retail (JD.com).

IPO 전 ESG 분석: 초기 실수에도 불구하고 JD.com의 ESG 스토리는 여전히 강력하다

JD.com (ADR)

IPO 전 ESG 분석: 초기 실수에도 불구하고 JD.com의 ESG 스토리는 여전히 강력하다