The Intersection of Fiduciary Duties and ESG-Related Investment Strategies with Jennifer Goode

Join us as we dive into ESG investing with our special guest Jennifer Goode. She is a director at Bernstein Private Wealth Management in Washington, DC, and a former founding partner of Birchstone Moore LLC, a boutique law firm focused on estate planning and trust administration. Jennifer discusses the challenges fiduciaries face in ESG investing and their duties of loyalty and prudence. Jennifer will explain the different types of ESG strategies, such as ESG integration and ESG-focused strategies, which can be used to improve financial returns while also striving to further an environment-related goal like fighting climate change. She also explores how traditional screens for ESG investing have yet to be found to reduce returns significantly and how structuring strategies according to broad themes can minimize diversification concerns. [00:01 - 07:46] Opening SegmentIntroducing Jennifer to the showThere are two types of ESG investing: integration and focused strategiesIntegration strategies invite more information into the analysis to provide a better financial return[07:47 - 14:38] Exploring the Intersection of Fiduciary Obligations and ESG InvestingFocusing on three fiduciaries: trustees of a trust, administrators of private retirement plans, and decision-makers for nonprofitsTwo duties applicable to ESG investing: fiduciary duty of loyalty and duty of prudenceESG integration goal is purely financial, with no third-party interests[14:39 - 21:51] Understanding the Benefits of ESG Investing for Multi-Generational TrustsFiduciaries should look at historical performance, portfolio managers, strategy structure, and goalposts to measure up against benchmarkCreate a standardized vocabulary and shared understanding of what is being discussedHave a meeting of beneficiaries and trustees to create space for education about the strategy and its role in investment[21:52 - 30:53] Exploring the Complexities of ESG InvestingJennifer talks about the lack of consistency and standardization in terms of what counts as ESG and what doesn'tIt is hard to determine the goalposts for the ESG goal due to the lack of a straight line between trying to further a more inclusive employment field and making sure companies have policies in placeThe media lacks consistency in covering these issues[30:54 - 32:40] Closing SegmentConnect with Jennifer through the links belowJennifer's daily practice: snuggling with her kidsFinal wordsConnect with Jennifer!Email: [email protected]:  www.bernstein.comDownload our FREE Strategizing for Inflation Guide here: https://www.excelsiorgp.com/download/Connect with me on LinkedIn!LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in, and Stay Tuned for the Next Episode COMING SOON!Disclosure: The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams and are subject to revision over time. Hosted on Acast. See acast.com/privacy for more information.