This is Exchanges at Goldman Sachs where we discuss developments currently shaping markets, industries in the global economy.

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

Today we're joined by Steve Strongen, one of the firm's senior advisors to talk about

ESG investing.

Steve and his team in Goldman Sachs research

have a new report out called Sustainable ESG Investing,

turning promises into performance.

Welcome back to the program, Steve.

Closer to be here as always, Jay.

I think you might be one of my most frequent interlocutors, so that's a good thing.

So in your research, you talk about how the focus on ESG is an investment style and not as a force for good.

So explain why you took that particular approach.

Sure.

Over the years a lot of things have happened in investing where investors wanted something to work or was important to investors.

If you look at the long haul, it really only works if it actually delivers returns. You know, most people managing money

have fiduciary responsibility to generate returns. So if something in the end

doesn't actually help generate returns, it tends to be a fad rather than a lasting part of the investment environment.

So you focus a bit on time frame and how that factors into the performance of the SG investing.

Why should investors think longer term

about their ESG strategies and not just short term?

The heart of that is what ESG is all about.

ESG is really a belief and idea

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