Opportunities and Challenges of ESG Investing with Laura Starks

Swedish House of Finance Podcast

In this seminar, Professor Starks talked about considerations regarding environment, social and governance (ESG) investing, starting with the differentiation in investor motivations: financial risk and return considerations (i.e., ESG value), nonpecuniary preferences (i.e., ESG values), or a combination of the two.

From a high level perspective, she addressed questions regarding investment approaches, such as whether to employ a negative screening approach or a positive tilt to the portfolio; how to think about integrating ESG principles into the investment process as well as engaging firm management on ESG principles; the role of third-party ESG ratings; the questions surrounding ESG portfolio disclosures and regulatory requirements, and the evidence that exists on the effects and effectiveness of these issues.