Target Rock Advisors


Target Rock Identifies Utility Components of Sustainability Index at 2013 EEI Strategic Issues Roundtable

Friday, April 5, 2013

At the 2013 EEI Strategic Issues Roundtable, held in Bonita Springs Florida, Target Rock founder and Managing Partner Richard Rudden introduced the utility companies who would be tracked as part of the 2013 Target Rock Sustainable Leaders Indexes based on their outstanding performance in across the dimensions of economic performance, environmental stewardship and social governance. “The companies selected for inclusion in the SULI indexes represent the best of the best of the nation’s utilities.” Stated Rudden. “Not only did their stocks outperform other utility stocks as a group over the last ten years the SULI indexes outperformed the traditional indexes represented by S&P and the Dow.”...

Quarterly Sustainability Index Update (Q3/2012)

Wednesday, October 10, 2012

This is the third quarter 2012 analysis of our ten energy utility industry Sustainability and ESG (Environmental, Social and Governance) Indexes. In summary, utility stocks underperformed the broader market in the third quarter after relatively strong first half of the year, largely attributable to a combination of natural profit-taking after a stellar first half and the negative effects the Federal Reserve’s latest round of quantitative easing (QE3) has on such a relatively low-risk defensive sector. The quarter also saw a short- term reversal of the positive long-term relationship between utility sustainability and stock market performance.

The Business Case for Sustainability: the Utility-Investor Relationship

Thursday, September 27, 2012

Presented Jointly to the EPRI and Utility Industry Sustainable Supply Chain Alliance at American Electric Power Company, Inc. Headquarters

This is a slide presentation made at the AEP offices by Richard Rudden, Managing Partner, Target Rock Advisors to a joint session of the EPRI Sustainability Interest Group (ESIG) and the Electric Utility Industry Sustainable Supply Chain Alliance (EUISSA, or the Association). The presentation provided operative definitions for sustainability, discussed the relevance of sustainability to the U.S. utility sector, addressed the potential for socially responsible investments (SRI) in the sector, described Target Rock’s sustainability...

Duke/Progress Merger: Positive for Corporate Sustainability Despite Governance Concerns

Thursday, July 19, 2012

This report is our first analysis of a utility merger in terms its potential effect on the sustainability of the new enterprise. The merger of Duke Energy Corporation and Progress Energy, Inc. is historical in its scale and scope. The combination has the potential to create substantial long-term economic, environmental and social value for shareholders and society as a whole. However, recent events tarnish Duke's social and governance record, raise questions about the nuclear fleet, increase regulatory risk, and could make for a difficult post-merger integration, conceivably reducing or delaying some of the benefits the merger is supposed to bring to stakeholders.

Sustainable Utility Regulation and Socio-Economic Success

Wednesday, July 11, 2012

In a paper published in the July issue of the online journal we suggest that state regulators adopt a more comprehensive and balanced view of sustainability in the U.S. energy utility sector. With as much as $2 trillion needing to be invested in the electric power network over the next several decades, the article argues that the industry should begin establishing standards that explicitly take into account economic, environmental and social factors, a framework also known as the “Triple Bottom Line,” or TBL.

Quarterly Sustainability Index Update (Q2/2012)

Monday, July 9, 2012

This is the second quarter 2012 analysis of our ten energy utility industry Sustainability and ESG (Environmental, Social and Governance) Indexes. In summary, most utility stocks performed well in the second quarter as investors continued to seek relative safety and current income, but socially responsible utilities outperformed the sector as a whole. The best performing indexes for the period represent the industry’s performance leaders in key areas of social responsibility: TRA High Sustainability Index produced a three-month total return of 7.7%, while the TRA High ESG Index and TRA High Environmental Index returned 7.1%.

Top 5 Sustainable Utility Dividends: Yield, Safety and Upside

Thursday, June 14, 2012

U.S. utility equities represent an ideal defensive play during periods of market uncertainty by offering high levels of current income with good total return potential and relatively limited downside risk. That's why utility stocks have performed so well recently. With valuations up and yields down (though still very attractive compared to alternatives), investors must be more selective when shopping for utility dividends. This report identifies and discusses today's top five sustainable utility dividends as determined by Target Rock's rigorous criteria.

Public Power Systems Improve Emissions Profiles

Tuesday, May 29, 2012

Target Rock released the results of an analysis of trends in emissions produced by public power systems. Overall, the public power systems made significant progress in reducing their total emissions and emissions intensity rates in three key emissions categories -- carbon dioxide, nitrogen oxides and sulfur dioxide -- as a result of better fuel selection, generating technology and emissions control and in other operational and planning policies and practices. This has helped them reach new levels of sustainable performance.

The Value of Sustainability: At Least $20-25 Billion for Utility Investors

Wednesday, May 23, 2012

Previous Target Rock analyses have shown a long-term positive relationship between utility sustainability performance and stock market returns. In the attached Research Note, we go a bit further and run a few simple “what-if” scenarios to estimate, in ballpark terms, what these indexes could have theoretically returned if each sustainability group scored, and performed in the market, like the next higher group over the ten year period. The results suggest that good sustainability policies and practices contributed to $20-25 billion in incremental market value to utility investors over the last ten years.

Quarterly Sustainability Index Update (2/14/12-5/14/12)

Tuesday, May 22, 2012

This is the first quarterly update report on Target Rock's ten energy utility industry Sustainability and ESG (Environmental, Social and Governance) Indexes, originally launched on February 14, 2012. These indexes are designed to provide both socially responsible and traditional investors with utility sector specific performance metrics on the basis of which they can tailor their investment portfolios to meet both financial and social responsibility objectives. In the first quarter we saw the continuation of a very compelling long-term trend: a strong positive long-term relationship between sustainability performance and stock market total returns.

Suggested Readings in Sustainability and Socially Responsible Investing

Tuesday, March 6, 2012

A bibliography of suggested readings in sustainability and socially responsible investing.

Case for Sustainable Utility Investing -- Target Rock Advisors White Paper Series

Tuesday, March 6, 2012

We present the case for sustainable and socially responsible investing in the U.S. utility industry and provide the results of analyses conducted by Target Rock Advisors. We discuss the more recent history of sustainability and socially responsible investing in a global and multi-industry context; define critical terms; discuss relationships among the concepts of “triple bottom line,” “sustainability,” “socially responsible investing” and “environmental, social and governance” considerations; address why TRA believes that certain utilities qualify as sustainable and socially responsible investments; describe the methodology used to assess, score and rank utility sustainability efforts and...

Deep, Sector-Specific
Sustainability Analytics:

1 industry
49 companies
30+ sources of data and information
2.4+ million points of data
400,000+ lines of proprietary code
1+ million calculations
11 indexes
200+ collective years of experience in the industry