[Innovative technologies and a new variety of resources are empowering ESG goals by enhancing ESG data, processes, frameworks and governance. New tools are now available to benefit small and large corporations by standardizing, capturing and consolidating ESG data and metrics necessary to compare ESG factors across companies and sectors—and to develop ranking systems. New support resources and initiatives are also helping guide and empower socially responsive investment professionals and institutionalizing efforts to address the many systemic risks that stand in the way of a sustainable future.
To dig a little deeper and get a better understanding of what is happening by way of new technologies, tools and resources in this rapidly evolving social investing environment, the Institute for Innovation Development decided to reach out again to a cross-section of socially responsive asset managers – from ESG to impact to focused thematic strategies – and get their real world, in-the-trenches perspective and thought leadership. We would like to thank Ultimus Fund Solutions—one of the largest independent fund administrators - who provided introductions to some of their socially responsive asset manager clients and that has created fund vehicles for all of them to enable more access for investors to socially driven investment options.
Let me introduce you to our panel and then we will jump into getting a true lay of the land from the following experts in this field:
Todd Ahlsten, chief investment officer, portfolio manager at Parnassus—a San Francisco-based asset management firm pioneering active socially responsible investing for more than 35 years focusing on integrating deep fundamental and ESG research into its collaborative, high-conviction, low turnover investment process.
Matthew Blume, director of ESG research and shareholder activism at Pekin Hardy Strauss Wealth Management, managers of the Appleseed Fund—a Chicago-based independent advisory firm providing funds and separate account strategies for investors that support their values through impact and ESG investing.
Patrick McVeigh, president and chief investment officer of Reynders, McVeigh Capital Management—a Boston-based full-service socially responsible investing and wealth management firm that integrates in-house ESG research and fundamental investment analysis to construct personalized multi-year strategies
Zin Bekkali, CEO of Silk Invest—a London-based advisory firm that invests in listed equities across global frontier markets—predominantly in Africa, the Middle East, Frontier Asia and Latin America—with a strong focus on impact investing and has been a signatory to the UN Principles of Responsible Investing since 2011.
Venk Reddy, founder and chief investment officer of Zeo Capital Advisors—a minority and woman owned, San Francisco-based fixed income investment manager focused on sustainable high yield strategies.]
What new tools or resources have become available to help support social investing? Can you share your thoughts on why you feel they are important and how they help social investors?
Parnassus: Public and investor interest in environmental, social and governance (ESG) investing has grown over recent years, and with growing interest, the business case for ESG has strengthened. More companies have begun paying attention to their ESG practices, so the need for useful evaluation frameworks has grown. Now, standards from organizations like the Task Force on Climate-Related Disclosure and The Sustainability Accounting Standards Board (SASB) are being more readily adopted and sell-side research providers are building their ESG capabilities.