In episode 74, Alex Proimos speaks with Helena Fung, head of sustainable investment, APAC at FTSE Russell.
In this episode, we cover the thornier issues that come from ESG and sustainability investing and how the ESG landscape has changed since the GFC in 2008. We cover the evolution from shareholder primacy to stakeholder primacy and the material factors that can add value versus destroy value and how this lines up with work of Porter’s Five Forces and fundamental analysis. We also touch on fiduciary duty and the performance implications that come from the integration of ESG. We discuss the social and governance factors (such as employee and voting rights) that have been increasingly prominent given the dominance of technology firms in portfolios and indices. Finally, we wrap up the conversation by talking about the role of stock exchanges in driving positive change for sustainable finance.