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Goldman Sachs Exchanges

Niche No Longer: ESG Investing Goes Mainstream

Goldman Sachs Exchanges

Goldman Sachs

Business

4.41K Ratings

🗓️ 21 April 2016

⏱️ 29 minutes

🧾️ Download transcript

Summary

What does it mean to be an environmental, social and governance (ESG) investor? For John Goldstein, co-founder of Imprint Capital and a managing director in Goldman Sachs Asset Management, investing for ESG requires the same rigor and discipline as "traditional" investing, and the distinction between the two is growing increasingly irrelevant. With better tools to parse data and an ever-expanding understanding of risk, ESG investing has gone from niche to mainstream. This episode was recorded on February 19, 2016. The views and opinions expressed herein should not be construed as an offer to buy or sell any securities and such views/opinions may differ from those of Goldman Sachs Global Investment Research or other departments or divisions of Goldman Sachs and its affiliates. This information may not be current and Goldman Sachs has no obligation to provide any updates or changes. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefor (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. Goldman Sachs is not providing any financial, economic, legal, accounting or tax advice in this podcast. In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of investment advice by any Goldman Sachs entity or individual to that listener, nor to constitute such person a client of any Goldman Sachs entity. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk. Copyright 2016 Goldman Sachs. All rights reserved.

Transcript

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0:00.0

This is exchanges at Goldman Sachs where people from our firm share their insights on developments

0:13.0

currently shaping markets, industries, and the global economy.

0:16.3

I'm Jake Seaward, Global Head of Corporate Communications here at the firm.

0:19.7

Today we're going to talk about impact and environmental, social, and governance investing, also known

0:24.4

as ESG investing. Goldman Sachs Asset Management, or G. Sam, last August bought an advisor

0:31.0

imprint capital to help broaden the firm's ESG efforts.

0:34.0

John Goldstein, who co-founded imprint and now helps lead our ESG platform,

0:38.0

is here today to discuss his new role in the future of sustainable investing.

0:42.0

John, welcome to the program.

0:44.0

Thanks for having me, Jake.

0:45.0

So, John, there's been a lot of talk in the financial community about socially responsible

0:49.6

investing lately and people are calling it impact investing they call it mission-driven investing

0:55.6

ESG investing map it out for us how should someone make sense of all this someone

1:01.3

who's not following it every day, what do all the different categories

1:04.6

look like from experienced professionals view?

1:07.7

So parsing the alphabet soup of these different disciplines is daunting but important. People use the same words to mean different

1:14.0

things, different words to mean the same things, all around this broad question of

1:17.7

how do we deploy resources in line with things we may care about or want to see in

1:22.1

the world.

1:22.7

So we divide into three categories, alignment, integration, and impact.

1:28.7

So first, alignment fundamentally is about making investments in a way that get a certain underlying financial exposure.

1:35.6

It could be to an equity market, a debt market, you name it,

...

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