Episode 24: The Blue Economy
Sustainability In Motion
We talk with Rolando Morillo, Senior Vice President and Portfolio Manager of Thematic Investment Strategies at Rockefeller Capital Managment. We talk about how investors can value, and invest in the Blue Economy, and how this can help drive conservation of the Ocean. We discuss the metrics used to value the health of our oceans and how improving them can drive opportunity for both investment and ocean restoration. Disclosures: The information presented herein are for educational purposes only. The views and opinions are the views and opinions of the senior investment...
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Episode 23: Climate Risk in Asia
Sustainability In Motion
Wai-Shin Chan joins us to discuss the complexities of advancing sustainability and managing climate risk across Asia. As Sustainability Advisor to Metis ESG, Director of Research at Asia Research and Engagement, and former Global Head of ESG Research at HSBC, Wai-Shin brings deep expertise to the conversation. We explore: The challenges of sustainability in a region with diverse cultures, languages, and legal systems Where Asian markets are leading on climate action Key areas where progress is still needed Tune in for insights on ESG trends and climate risk in one of the world’s most...
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Episode 22: Greenwashing
Sustainability In Motion
We talked with Helen Neal, Founder and CEO of HN Communications, a sustainability communications company that helps companies effectively navigate a complicated sustainability landscape. We discuss greenwashing, greenhushing and how companies can best tell their sustainability story.
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Episode 21: Managing Sustainability Risks
Sustainability In Motion
In Episode 21 of Sustainability in Motion, Matt Orsagh and Maria Maisuradze speak with Jo Paisley, President of the GARP Risk Institute, about the evolving landscape of sustainability risk in the financial sector. With deep experience from the Bank of England to HSBC, Jo brings a unique lens on how financial professionals can better prepare for climate and nature-related challenges. We cover: Jo’s journey from economist and regulator to sustainability thought leader What GARP and the GARP Risk Institute are doing to advance risk literacy in sustainability Key findings from their...
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Episode 20: The Boardroom Illusion
Sustainability In Motion
In this eye-opening episode, we unpack the quiet crisis in corporate governance: how boardrooms are often shaped by personal networks over real skills, leaving major ESG blind spots at the top. Guest Matt Moscardi, Co-founder of Free Float Analytics, joins us to explore signals that companies send by backtracking on their commitment and why treating investment stewardship as a cost center may be a costly mistake. We dive into the DEI backlash, flip-flopping climate commitments, and how surface-level sustainability reports (complete with curated optics) reveal more about a company’s culture...
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Episode 19: The Wellbeing Economy
Sustainability In Motion
We talk with Victoria Hurth, a Pracademic (practitioner and academic) to help define and describe a well-being economy. We discuss how to get to a wellbeing economy from our current state, and what companies and investors need to do to move in that direction.
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Episode 18: Income Inequality
Sustainability In Motion
We talk about the issue of income inequality and why understanding income inequality is important for investors. We discuss the causes of inequality, the ways that inequality impacts our economy and investments. Listeners can learn ways to measure income inequality, and how to integrate inequality analysis and analysis of other systemic issues into the investment process.
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Episode 17: 2025 Outlook
Sustainability In Motion
In this episode, Matt, Maria, and Nawar reflect on their 2024 sustainability predictions and look ahead to what’s coming in 2025. They discuss the ESG backlash, evolving sustainability regulations, and key trends shaping the future. Tune in as they analyze past forecasts and make bold predictions for the year ahead! 🎙️🌍
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Episode 16: Systems Change Through Investing
Sustainability In Motion
In this episode of the Sustainability in Motion podcast, hosts Matt Orsagh and Maria Maisuradze engage in an insightful discussion with William Burckart, CEO of the Investment Integration Project (TIIP), which helps investors integrate systems thinking in the investment process. The conversation explores the transformative concept of systems-level investing, a forward-thinking approach that integrates financial, social, environmental, and economic systems to address systemic risks such as climate change, inequality, and resource scarcity. Key highlights include: Introduction to Systems-Level...
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Episode 15: System Level Investing
Sustainability In Motion
Episode Overview: In this episode, Matt Orsagh and Nawar Alsaadi of ED4S sit down with Jon Lukomnik, a leading figure in sustainable finance and co-author of Moving Beyond Modern Portfolio Theory. Jon explores the limitations of Modern Portfolio Theory (MPT) in addressing long-term, systemic risks like climate change, highlighting the evolution toward "system-level investing." Key Takeaways: Limitations of MPT: MPT is designed for idiosyncratic risk (individual asset variance) but fails to account for systemic risks, which cannot be diversified away. Lukomnik notes that while MPT...
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- Matt Orsagh, Chief Content Officer at ED4S
- Nawar Alsaadi, CEO and Founder of Kanata Advisors, Chief Advisor to ED4S
Episode Focus:
Understanding how investors use sustainability (ESG) data and discussing the nuances around financial materiality, investment strategies, and the impact of ESG in today’s investment landscape.
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Key Takeaways:
1. Understanding Financially Material ESG Data:
- Financially material data is defined as any ESG data point that impacts financial metrics (e.g., revenue, expenses, net income) and varies by industry.
- For example, fuel costs are crucial for airlines, while data privacy is highly relevant for tech companies.
2. Defining Materiality in ESG:
- Materiality definitions vary slightly across countries but generally encompass information essential to an informed investor's decision-making process.
- Historical context: ESG integration has evolved significantly since the early 2000s, spurred by initiatives like the UN PRI, which sought to standardize ESG data incorporation.
3. How Investors Use ESG Data in Practice:
- ESG data supports various investment processes, including product development, security selection, portfolio construction, and risk management.
- Investors often tailor ESG use based on their primary goals (e.g., return-focused or impact-driven).
4. Best Practices for Using ESG Data:
- Transparency in ESG strategy and data sources is crucial, as is regularly updating the materiality matrix to prioritize relevant data points.
- Creating a materiality matrix helps investors and companies clarify what ESG factors matter most within specific industries, improving decision-making.
5. Examples of Material ESG Data for Investors:
- Employee Engagement: Studies show that engaged employees contribute to better financial performance, with benefits such as higher sales, profitability, and lower safety incidents.
- Retail Example: Comparing employee engagement practices across companies like Costco, Walmart, and Target reveals differences that influence investor preferences and long-term valuation.
6. Fundamental vs. Quantitative Investment Approaches:
- Fundamental Investors (Traditional): Use qualitative insights and financial data to assess companies, involving conversations with management and evaluating non-financial factors (like employee satisfaction).
- Quant Investors (Data-Driven): Employ models to identify ESG factors affecting large data sets, often favoring empirical data and consistent metrics like turnover rates and pay equity.
7. Impact Investing and ESG Data Use:
- While similar to traditional investment processes, impact investing incorporates ESG data points for social/environmental goals even if they don’t enhance returns.
- Trade-Offs in Impact Investing: Investors must be transparent about balancing financial returns with impact goals, especially in public markets where shareholder influence is dispersed.
8. The Anti-ESG Movement:
- Anti-ESG sentiment has surfaced, largely driven by political motives and skepticism around the integration of non-financial data in investment decisions.
- Positive Impact of Scrutiny: This backlash is encouraging companies and investors to be more transparent and committed to authentic ESG integration, potentially weeding out greenwashing practices.
- Future Outlook: With 2024 being a significant election year worldwide, ESG-related debates may intensify, but ESG practices grounded in financial performance and value creation are likely to endure.
Conclusion:
This episode underscores that ESG data, particularly financially material data, is vital in the investment process but is subject to ongoing scrutiny and evolution. The hosts discuss the importance of transparency, industry relevance, and thoughtful application of ESG data to both drive returns and create social/environmental impact.
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