America Trends Podcast
EP 688 Investors Torn Between Doing Good and Doing Well: The Saga of ESG Investing
ESG investment products have environmental, social and governance considerations at their root. ESG investing grew out of the United Nations’ Principles for Responsible Investing. A former UN Secretary General Kofi Annan wanted to encourage investors to be more mindful of how their investments might dovetail with the UN’s Sustainable Development Goals. Thus, they encouraged investors to incorporate ESG considerations into their decision-making. And while our guest, Terrence Keeley, CEO of 1PointSix, LLC and author of “Sustainable: Moving Beyond ESG to Impact Investing”, says “we should all want the ethos of ESG to reign,” he also says that fiduciary responsibility to clients requires that other factors also must play a role in investment decisions. And on that score, according to our guest, ESG investment products are not generating consistent financial performance; nor are they producing much good. He has a nuanced approach to this issue and provides what he considers a better approach to doing good and doing well. Listen carefully as he has thought these issues out in a reasoned fashion.