{"id":1975,"date":"2024-04-11T12:00:39","date_gmt":"2024-04-11T16:00:39","guid":{"rendered":"http:\/\/www.bu.edu\/imap\/?page_id=1975"},"modified":"2024-04-11T12:00:39","modified_gmt":"2024-04-11T16:00:39","slug":"fall-2024-workshop","status":"publish","type":"page","link":"https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/","title":{"rendered":"Fall 2024 Workshop"},"content":{"rendered":"<p><span><\/span><strong><\/strong><\/p>\n[bu_slideshow show_id=&#8221;2319&#8243; show_nav=&#8221;1&#8243; transition=&#8221;slide&#8221; nav_style=&#8221;icon&#8221; autoplay=&#8221;1&#8243; transition_delay=&#8221;3&#8243; width=&#8221;auto&#8221; shuffle=&#8221;0&#8243;]\n<p>Thanks to all who attended our 3rd annual Fall Workshop on October 18, 2024. It was a huge success.<\/p>\n<p>For information about our Fall 2025 Workshop, see <a href=\"https:\/\/questromworld.bu.edu\/test-3\/imap\/events\/fall-2025-workshop\/\">here<\/a>.<\/p>\n<h3>Overview<\/h3>\n<p><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW234238468 BCX8\"><span class=\"NormalTextRun SCXW234238468 BCX8\">Our 2024 Fall Workshop <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">examined <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">how investment managers balance investors\u2019 desire for both financial gain<\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">s<\/span><span class=\"NormalTextRun SCXW234238468 BCX8\"> and positive environmental and social impacts. <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">Many shareholders have opinions about where their money is <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">and should be <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">invested. Some are willing to sacrifice <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">some <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">financial return in exchange for supporting companies <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">that <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">maintain<\/span><span class=\"NormalTextRun SCXW234238468 BCX8\"> <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">a certain standard of employee welfare and environmental responsibility; some <\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">seek<\/span><span class=\"NormalTextRun SCXW234238468 BCX8\"> even greater positive impact on environmental or social issues from the corporations that they invest in; and still others simply want to maximize shareholder returns<\/span><span class=\"NormalTextRun SCXW234238468 BCX8\">.\u00a0\u00a0<\/span><\/span><span class=\"EOP SCXW234238468 BCX8\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n[collapsible heading=&#8221;Key Takeaways&#8221; elem=&#8221;h4&#8243;]\n<ul>\n<li><strong><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW149175945 BCX8\"><span class=\"NormalTextRun SCXW149175945 BCX8\">S<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">hareholder <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">investment choices can signal <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">their <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">preferences or<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">preferences can <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">be <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">identified<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> via <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">regulation<\/span><\/span><\/strong><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW149175945 BCX8\"><strong><span class=\"NormalTextRun SCXW149175945 BCX8\">. <\/span><\/strong><span class=\"NormalTextRun SCXW149175945 BCX8\">Identifying<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> investor preferences can occur simply by the choices <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">they make <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">as to what <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">type of <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">funds they invest in.<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">However, s<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">ome investment firms <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">are <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">more proactive<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> in <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">identifying<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> these preferences, for example<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">,<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> by surveying <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">their investors. <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">And there are<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> some <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">jurisdictions<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">\u2014notably, <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">Europe<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">\u2014<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">that <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">have<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> regulations <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">requiring<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> firms to survey their investors to <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">determine<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> their preference<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">s <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">regarding<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> sustainability<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\"> and specific <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">environmental and social goals<\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">. <\/span><span class=\"NormalTextRun SCXW149175945 BCX8\">Firms can and do use these surveys to encourage individual investors towards more sustainable investments. <\/span><\/span><span class=\"LineBreakBlob BlobObject DragDrop SCXW149175945 BCX8\"><span class=\"SCXW149175945 BCX8\"><br \/>\n<\/span><br class=\"SCXW149175945 BCX8\" \/><\/span><\/li>\n<li><strong><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW247318228 BCX8\"><span class=\"NormalTextRun SCXW247318228 BCX8\">Investors usually care about multiple <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">issues and<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\"> vary in how <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">they weigh <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">their<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\"> relative <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">importance.<\/span><\/span><\/strong><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW247318228 BCX8\"><span class=\"NormalTextRun SCXW247318228 BCX8\"> <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">Most investors<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\"> care<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">\u2014at least a little\u2014<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">about sustainability issues<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">,<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\"> but there <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">can be <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">considerabl<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">e <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">differences across investor groups<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">. <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">Perhaps most<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\"> notably, <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">there are <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">generational gaps in investor preferences: millennials <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">exhibit<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\"> <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">more interest in sustainable practices, but this cohort lacks <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">much <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">financial control <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">as <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">older generations <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">of investors continue to <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">hold more wealth. <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">All i<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">nvestors can <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">help drive change<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">: for example, pensioners can raise <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">sustainability concerns with pension <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">investment <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">firms<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">; and consumers <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">can make more sustainable choices in their <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">purchases. Across all investor groups, it <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">remains<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\"> important to <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">identify<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\"> and understand the inherent <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">trade-offs in costs and benefits relating to investing in certain types of funds, and <\/span><span class=\"NormalTextRun SCXW247318228 BCX8\">purchasing<\/span><span class=\"NormalTextRun SCXW247318228 BCX8\"> certain types of products, when incorporating non-financial goals such as sustainability.<br \/>\n<\/span><\/span><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"SCXW247318228 BCX8\"><br \/>\n<\/span><\/span><\/li>\n<li><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><strong><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW138684429 BCX8\"><span class=\"NormalTextRun SCXW138684429 BCX8\">Current regulations in both the US and Europe can help prevent greenwashing<\/span><\/span><\/strong><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW138684429 BCX8\"><strong><span class=\"NormalTextRun SCXW138684429 BCX8\">. <\/span><\/strong><span class=\"NormalTextRun SCXW138684429 BCX8\">European <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">investment <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">funds are subject to the <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">S<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">ustainable <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">F<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">inance <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">D<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">isclosure <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">R<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">egulation (SFDR), <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">which is a disclosure regulation requiring that a designated sustainable fund must clearly lay out its investment <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">objectives<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> and <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">the <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">type of firms included within its portfolio. While US investment <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">funds are not subject to a US-equivalent of the SFRD, <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">they <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">may use <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">this latter regulation to highlight how each <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">investment <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">is <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">vetted<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">. <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">Further, US investment firms <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">must <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">disclose<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> their investments and <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">comply with<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> SEC <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">disclosure<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> rules<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">;<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> failure to do so can lead to SEC fines relating to <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">fraudulent marketing. <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">The SEC also has <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">a so-called \u201c<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">80% names<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">\u201d<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> test, <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">requiring investment firms <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">to define the term<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">s<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> used in naming a fund<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">,<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> and <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">demonstrating<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> that <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">at least <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">80% of the portfolio <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">aligns with this <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">definition.<\/span><span class=\"NormalTextRun SCXW138684429 BCX8\"> Europe also has a <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">similar, though stricter, <\/span><span class=\"NormalTextRun SCXW138684429 BCX8\">fund naming rule.<\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW138684429 BCX8\"><span class=\"NormalTextRun SCXW138684429 BCX8\"><strong><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW127067413 BCX8\"><span class=\"NormalTextRun SCXW127067413 BCX8\">Both the <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">US <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">and <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">EU <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">have varying layers of <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">current regulations.<\/span><\/span><\/strong><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW127067413 BCX8\"><span class=\"NormalTextRun SCXW127067413 BCX8\"> <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">In the US, many <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">states have <\/span><\/span><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW127067413 BCX8\"><span class=\"NormalTextRun SCXW127067413 BCX8\">legislation that aligns with their <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">particular view<\/span><span class=\"NormalTextRun SCXW127067413 BCX8\"> of ESG and sustainability<\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">; this <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">creates a bifurcated regulatory environment <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">of differing federal versus state-level regulation, which is challenging for US investment managers to navigate<\/span><\/span><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW127067413 BCX8\"><span class=\"NormalTextRun SCXW127067413 BCX8\">. <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">I<\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">t <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">also <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">means <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">investment firms <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">must <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">offer <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">numerous<\/span><span class=\"NormalTextRun SCXW127067413 BCX8\"> fund <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">choices to meet <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">varying investor <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">preferences.<\/span><span class=\"NormalTextRun SCXW127067413 BCX8\"> However, many of <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">these federal and state-level regulations are being challenged <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">on fiduciary <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">duty <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">grounds<\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">, leading to further uncertainty<\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">. <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">In the EU, there is variation <\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">by region<\/span><span class=\"NormalTextRun SCXW127067413 BCX8\"> as well<\/span><span class=\"NormalTextRun SCXW127067413 BCX8\">.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW138684429 BCX8\"><span class=\"NormalTextRun SCXW138684429 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW127067413 BCX8\"><strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW29608914 BCX8\"><span class=\"NormalTextRun SCXW29608914 BCX8\">While many <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">companies and <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">investment firms face short-term performance pressures, <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">the long-term implications <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">of sustainability risks <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">remain<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">.<\/span><\/span><\/strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW29608914 BCX8\"><span class=\"NormalTextRun SCXW29608914 BCX8\"> <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">More <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">sustainability <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">issues are becoming financially <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">material and<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\"> <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">thus must be <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">addressed<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">;<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\"> <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">in order <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">for businesses to <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">thrive <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">in the <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">long-term, they need to <\/span><\/span><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW29608914 BCX8\"><span class=\"NormalTextRun SCXW29608914 BCX8\">consider <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">their<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\"> environmental and social aspects<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\"> to ensure profitability tomorrow<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">.<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\"> <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">Some <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">EU regulations <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">are helping to foster <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">this long<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">er<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">-term thinking. <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">In addition<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">, some investors specifically focus on long<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">er<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">-term <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">investments<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">:<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\"> <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">for example, <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">in the energy sector, even a 5-10-year window is short, given the <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">typical multi-<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">decade<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\"> <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">life expectancy<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\"> for many <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">energy assets<\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">. <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">Investment firms can focus on <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">governance structures, incentive alignment, and the right metrics to help promote a <\/span><span class=\"NormalTextRun SCXW29608914 BCX8\">more long-term perspective.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW138684429 BCX8\"><span class=\"NormalTextRun SCXW138684429 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW127067413 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW29608914 BCX8\"><strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW57883378 BCX8\"><span class=\"NormalTextRun SCXW57883378 BCX8\">Financial investment companies can help instill a more long-term view <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">and shape <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">investor <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">preferences<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">, <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">but <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">don\u2019t<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\"> always choose to do so.<\/span><\/span><\/strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW57883378 BCX8\"><span class=\"NormalTextRun SCXW57883378 BCX8\"> <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">Investment firms <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">can actively engage with their clients, companies, policy, and the media to <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">highlight <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">the importance of <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">long-term<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\"> thinking<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">. <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">However,<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\"> with diverse and dispersed client bases, <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">it is difficult for <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">investment firms <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">to comprehensively lay out and address these <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">issue<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">s<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">.<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\"> <\/span><\/span><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW57883378 BCX8\"><span class=\"NormalTextRun SCXW57883378 BCX8\">Both investment and sustainability goals are <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">long-term but<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\"> can <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">fail to align due to market pressures. <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">One reason is that public <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">policy<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">\u2014<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">like pricing externalities (e.g., carbon pricing)<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">\u2014<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">remains<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\"> underdeveloped, making it harder for companies to prioritize sustainability<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">. <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">Yet<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\"> c<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">limate risk <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">continues to become <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">more prominent, even for firms that do not emphasize sustainability<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">;<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\"> <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">one example of this is the increased flooding risks to infrastructure<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\"> across the US. <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">Notably<\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">, recognition of climate risks <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">continues to vary <\/span><span class=\"NormalTextRun SCXW57883378 BCX8\">across sectors and businesses.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW138684429 BCX8\"><span class=\"NormalTextRun SCXW138684429 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW127067413 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW29608914 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW57883378 BCX8\"><strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW258147285 BCX8\"><span class=\"NormalTextRun SCXW258147285 BCX8\">GFANZ, the Glasgow Financial Alliance for Net Zero, <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">provides<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\"> an example of how <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">companies <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">can <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">share best practices.<\/span><\/span><\/strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW258147285 BCX8\"><span class=\"NormalTextRun SCXW258147285 BCX8\"> <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">GFANZ is <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">comprised<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\"> of organizations across the financial sector<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\"> (including <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">asset owners<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">,<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\"> banks, private equity, venture capital, and insurance<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">), <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">all dedicated towards <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">facilitating<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\"> <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">member firms<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\"> <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">to <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">convince their investees <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">on<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\"> the merits of achieving <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">zero. <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">GFANZ <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">provides<\/span><span class=\"NormalTextRun SCXW258147285 BCX8\"> an excellent example of considerable (global) <\/span><span class=\"NormalTextRun SCXW258147285 BCX8\">cross fertilization.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW138684429 BCX8\"><span class=\"NormalTextRun SCXW138684429 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW127067413 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW29608914 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW57883378 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW258147285 BCX8\"><strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW59228008 BCX8\"><span class=\"NormalTextRun SCXW59228008 BCX8\">As long as sustainability-related issues materially affect firm financial performance, they will remain key investment considerations regardless of current political views<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">. <\/span><\/span><\/strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW59228008 BCX8\"><span class=\"NormalTextRun SCXW59228008 BCX8\">I<\/span><\/span><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW59228008 BCX8\"><span class=\"NormalTextRun SCXW59228008 BCX8\">f a factor include<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">d<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\"> in <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">an<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\"> investment analysis <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">can be <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">demonstrated<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\"> as <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">financially<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\"> material<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">, <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">this limits the impact of current (potentially changing) perspectives of the political and <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">regulatory regime. <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">Firms prioritize the consideration of financial <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">impacts, as well as <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">adverse impacts<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\"> that will have <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">a financial impact<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\"> because of a systemic risk that cuts across portfolios<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">. <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">However, <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">differing <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">regulations <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">(including <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">across states<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">)<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\"> can <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">affect both <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">how investment firms <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">communicate with <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">their clients<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">, as well as how <\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">companies are evaluated<\/span><span class=\"NormalTextRun SCXW59228008 BCX8\">.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span class=\"LineBreakBlob BlobObject DragDrop SCXW247318228 BCX8\"><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW138684429 BCX8\"><span class=\"NormalTextRun SCXW138684429 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW127067413 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW29608914 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW57883378 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW258147285 BCX8\"><span class=\"LineBreakBlob BlobObject DragDrop SCXW59228008 BCX8\"><strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW236433961 BCX8\"><span class=\"NormalTextRun SCXW236433961 BCX8\">Investment firms would prefer more standardized regulations.<\/span><\/span><\/strong><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW236433961 BCX8\"><span class=\"NormalTextRun SCXW236433961 BCX8\"> <\/span><\/span><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW236433961 BCX8\"><span class=\"NormalTextRun SCXW236433961 BCX8\">Voluntary reporting can lead to <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">variable approaches and disclosures<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">, <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">limiting the effectiveness of sustainability-related <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">data.<\/span><\/span><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW236433961 BCX8\"><span class=\"NormalTextRun SCXW236433961 BCX8\"> <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">Mandated disclosure can help standardize measurement and disclosure approaches<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">;<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\"> for example, <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">regarding<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\"> <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">scope 1 and 2<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\"> emissions<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\"> as recommended by<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\"> <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">the <\/span><\/span><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun SCXW236433961 BCX8\"><span class=\"NormalTextRun SCXW236433961 BCX8\">ISSB <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">(International Sustainability Standards Board)<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">.<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\"> <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">This is <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">because <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">such standards help to <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">create a <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">more <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">universally applied<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\"> baseline<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">, which <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">facilitates<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\"> comparisons <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">across companies and <\/span><span class=\"NormalTextRun SCXW236433961 BCX8\">jurisdictions<\/span><span class=\"NormalTextRun SCXW236433961 BCX8\"> for reporting sustainability factors.\u00a0<\/span><\/span><span class=\"EOP SCXW236433961 BCX8\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:257}\">\u00a0<\/span><\/span><\/span><span data-contrast=\"none\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun EmptyTextRun SCXW258147285 BCX8\"><\/span><span class=\"EOP SCXW258147285 BCX8\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:257}\">\u00a0<\/span><\/span><\/span><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun EmptyTextRun SCXW29608914 BCX8\"><\/span><span class=\"EOP SCXW29608914 BCX8\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:257}\">\u00a0<\/span><\/span><\/span><\/span><\/span><span data-contrast=\"auto\" xml:lang=\"EN-US\" lang=\"EN-US\" class=\"TextRun EmptyTextRun SCXW247318228 BCX8\"><\/span><span class=\"EOP SCXW247318228 BCX8\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:257}\">\u00a0<\/span><\/li>\n<\/ul>\n[\/collapsible]\n[collapsible heading=&#8221;What do Shareholders Want?&#8221; elem=&#8221;h4&#8243;]\n<p><span data-contrast=\"auto\">Professor Keith Ericson teed off the discussion with a presentation of his research into understanding what shareholders want: just financial gain or something else. (<\/span><a href=\"https:\/\/www.nber.org\/system\/files\/working_papers\/w32064\/w32064.pdf\"><span data-contrast=\"none\">See Ericson\u2019s NBER paper on this here<\/span><\/a><span data-contrast=\"auto\">.) Ericson highlighted that individuals can be both owners of firms as well as consumers of their products\/services, and thus care about how firms set prices for consumers.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Ericson ran an experiment examining how shareholders who care about consumers as well as profits would react to price decreases for consumers, finding that the gains of small price decreases can be quite large. For example, a firm can maximize profits only &#8211; or it can also consider consumers, leading the firm to lower prices (even a little bit) and thus directly benefit consumers by enabling them to save money on their purchases. His illustrative example demonstrated that small price reductions can have relatively limited effects on firm profits but lead to considerable consumer benefits.\u00a0 <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">To assess how retail investors might trade-off financial versus non-financial gains in their investments, Ericson used surveys (from the Rand American Life panel) asking participants about a hypothetical firm in which they owned stock, and to consider a shareholder vote on pricing strategy. Specifically, Ericson examined the point at which participants would switch from voting for profit maximization versus lower prices for consumers. Related, he examined how these hypothetical shareholders would respond to proposals to make a firm more environmentally friendly by quantifying those environmental benefits in monetary terms and then asking whether shareholders are willing to give up a million dollars in profits for the firm for $64 million in social environmental benefits.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Interestingly, he found that 93% of survey participants place some positive weight on consumers, indicating they do not always vote to maximize profits. Of note, only 7% of participants voted for purely profit maximization. This strongly suggests there are inflection points at which these participants\u2014representing hypothetical shareholders\u2014 would trade-off maximizing profits to achieve some consumer or environmental benefit. Within the survey, he found that the median participant was willing to trade a dollar in firm profit for $2.30 in consumer benefits; this trade-off was similar in magnitude when considering environmental benefits. Ericson concludes that shareholders appear willing to forego some financial benefits to give consumers larger benefits. While this trade-off does not appear to be a dollar for a dollar, there is an expressed willingness to incur smaller financial costs to provide larger non-financial gains to other stakeholders (such as consumers and the environment).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n[\/collapsible]\n<h2><span>This year&#8217;s theme was &#8211; Shifting Scales: How investors balance financial, environmental, and social risks\u00a0<\/span><\/h2>\n<h4><em>How do investors balance financial returns with environmental or social objectives?<\/em><\/h4>\n<p><span data-contrast=\"auto\">Many shareholders have opinions about where their money is invested. Some are willing to sacrifice a degree of financial return in exchange for supporting companies maintaining <\/span><span data-contrast=\"auto\">a certain standard of employee welfare and environmental responsibility; some seek even greater positive impact on environmental or social issues from the corporations that they invest in; and still others simply want to maximize profit and thus their shareholder returns.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">How should investors and corporations differentiate their actions based on these diverse goals? The concept of balancing financial return versus social and environmental interests has been called \u201cperhaps the most important corporate law debate over the last several years.\u201d (Scott Hirst of BU Law School in a 2023 article in <\/span><a href=\"https:\/\/www.promarket.org\/2023\/05\/09\/how-much-do-investors-care-about-social-responsibility\/\"><span data-contrast=\"none\">ProMarket<\/span><\/a><span data-contrast=\"auto\">.)\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">IMAP affiliated faculty Keith Ericson\u2019s paper, \u201c<\/span><a href=\"https:\/\/www.nber.org\/system\/files\/working_papers\/w32064\/w32064.pdf\"><span data-contrast=\"none\">What do shareholders want?<\/span><\/a><span data-contrast=\"auto\">\u201d examines this timely and critical issue of what shareholders want firms to maximize. &#8220;Consumers are a key group missing from typical ESG or corporate social responsibility measures, even though promoting consumer welfare is arguably a social objective. Consumers are closely related to a firm\u2019s core business, and while firms may or may not have a comparative advantage in promoting other goals, promoting consumer welfare is undoubtedly a competitive advantage for firms,\u201d said Ericson in his article, <\/span><a href=\"https:\/\/www.hoover.org\/research\/should-consumer-welfare-be-objective-firm\"><span data-contrast=\"none\">Should Consumer Welfare be an Objective of the Firm?<\/span><\/a><span data-contrast=\"auto\"> &#8220;Given<\/span><span data-contrast=\"none\"> the similar magnitude of shareholder concern for consumer welfare and the environment, this paper\u2019s results suggest that the impact of firms on consumers should receive more attention when assessing the social impact of investing,\u201d he argues. <\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">An earlier <\/span><a href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2024-01-22\/shareholders-are-people-too\"><span data-contrast=\"none\">article by Matt Levine in Bloomberg<\/span><\/a><span data-contrast=\"auto\"> discussed this concept: \u201c<\/span><span data-contrast=\"auto\">But in modern finance we know, or suspect, a few more facts about shareholders, and those facts might suggest that the shareholders have other desires, beyond just the stock going up.\u201d<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Shareholders can use their interests to push companies towards certain behaviors. Activism through proxy proposals has been called, \u201c<\/span><span data-contrast=\"auto\">the complaints department for investors,\u201d by <\/span><a href=\"https:\/\/www.kiplinger.com\/investing\/proxy-season-update-for-2023-what-shareholders-are-saying\"><span data-contrast=\"none\">Ellen Kennedy in Kiplinger<\/span><\/a><span data-contrast=\"auto\">. The 2023 and 2024 proxy seasons were particularly active.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Reflecting corporate pushback on this trend, this past May, Exxon filed a lawsuit against its shareholders to prevent them from bringing forward proposals to influence the company\u2019s actions. In a <\/span><a href=\"https:\/\/finance.yahoo.com\/news\/column-exxon-mobil-suing-shareholders-100046384.html\"><span data-contrast=\"none\">Yahoo Finance<\/span><\/a><span data-contrast=\"none\"> column, author Michael Hiltzik said, \u201cThe company&#8217;s legal threat worked: Days after the lawsuit was filed, the shareholder groups, weighing their relative strength against an oil behemoth, withdrew the proposal and pledged not to refile it in the future. Yet even though the proposal no longer exists, the company is still pursuing the lawsuit, running up its own and its adversaries&#8217; legal bills. Its goal isn&#8217;t hard to fathom.\u201d\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">This debate reveals a number of ongoing questions, including: <\/span><span data-contrast=\"auto\">How much financial return can or should be traded to achieve these multiple goals simultaneously? How can asset managers determine the appropriate balance within these multiple goals? How should corporate managers incorporate differing investor priorities into their strategic decisions?\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This workshop will explore academic research on this question and facilitate a panel discussion to hear the viewpoints of corporate and investment industry leaders.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span>Our keynote speaker will be <\/span><a href=\"https:\/\/questromworld.bu.edu\/test-3\/imap\/profiles\/keith-ericson\/\" rel=\"noopener noreferrer\" target=\"_blank\" data-link-type=\"web\">Keith Ericson<\/a><span>, Professor of Markets, Public Policy, and Law at BU&#8217;s Questrom School of Business, who will talk about his research into what shareholders want.\u00a0 Our panel discussion will be moderated by <a href=\"https:\/\/questromworld.bu.edu\/test-3\/imap\/profiles\/edward-riedl\/\">Eddie Riedl<\/a>, the John F. Smith Jr. Professor in Management, Professor of Accounting at BU&#8217;s Questrom School of Business.<\/span><\/p>\n<p><strong>Friday October 18, 2024<\/strong><\/p>\n<p>Boston University\u2019s Campus<\/p>\n<table width=\"813\">\n<tbody>\n<tr>\n<td>8 &#8211; 9am<\/td>\n<td>Arrivals, networking over continental breakfast with IMAP Research Poster Session<\/td>\n<\/tr>\n<tr>\n<td>9 &#8211; 10:30am<\/td>\n<td>Panel presentation<\/td>\n<\/tr>\n<tr>\n<td>10:30 &#8211; Noon<\/td>\n<td>All participants engage in small-group roundtable discussions<\/td>\n<\/tr>\n<tr>\n<td>Noon &#8211; 1pm<\/td>\n<td>Networking lunch, with continuation of the IMAP Research Poster Session<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Featured Speakers:<\/strong><\/p>\n[bu_list_profiles format=&#8221;advanced&#8221; include=&#8221;2275, 1323, 1092, 2282, 991&#8243;]\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[bu_slideshow show_id=&#8221;2319&#8243; show_nav=&#8221;1&#8243; transition=&#8221;slide&#8221; nav_style=&#8221;icon&#8221; autoplay=&#8221;1&#8243; transition_delay=&#8221;3&#8243; width=&#8221;auto&#8221; shuffle=&#8221;0&#8243;] Thanks to all who attended our 3rd annual Fall Workshop on October 18, 2024. It was a huge success. For information about our Fall 2025 Workshop, see here. Overview Our 2024 Fall Workshop examined how investment managers balance investors\u2019 desire for both financial gains and positive [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"parent":668,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"class_list":["post-1975","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fall 2024 Workshop - Test 3<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Fall 2024 Workshop - Test 3\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"[bu_slideshow show_id=&#8221;2319&#8243; show_nav=&#8221;1&#8243; transition=&#8221;slide&#8221; nav_style=&#8221;icon&#8221; autoplay=&#8221;1&#8243; transition_delay=&#8221;3&#8243; width=&#8221;auto&#8221; shuffle=&#8221;0&#8243;] Thanks to all who attended our 3rd annual Fall Workshop on October 18, 2024. It was a huge success. For information about our Fall 2025 Workshop, see here. Overview Our 2024 Fall Workshop examined how investment managers balance investors\u2019 desire for both financial gains and positive [&hellip;]\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:url\" content=\"https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:site_name\" content=\"Test 3\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data1\" content=\"11 minutes\" class=\"yoast-seo-meta-tag\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/events\\\/fall-2024-workshop\\\/\",\"url\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/events\\\/fall-2024-workshop\\\/\",\"name\":\"Fall 2024 Workshop - Test 3\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/#website\"},\"datePublished\":\"2024-04-11T16:00:39+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/events\\\/fall-2024-workshop\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/events\\\/fall-2024-workshop\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/events\\\/fall-2024-workshop\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Events\",\"item\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/events\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Fall 2024 Workshop\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/#website\",\"url\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/\",\"name\":\"Test 3\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/questromworld.bu.edu\\\/test-3\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Fall 2024 Workshop - Test 3","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/","og_locale":"en_US","og_type":"article","og_title":"Fall 2024 Workshop - Test 3","og_description":"[bu_slideshow show_id=&#8221;2319&#8243; show_nav=&#8221;1&#8243; transition=&#8221;slide&#8221; nav_style=&#8221;icon&#8221; autoplay=&#8221;1&#8243; transition_delay=&#8221;3&#8243; width=&#8221;auto&#8221; shuffle=&#8221;0&#8243;] Thanks to all who attended our 3rd annual Fall Workshop on October 18, 2024. It was a huge success. For information about our Fall 2025 Workshop, see here. Overview Our 2024 Fall Workshop examined how investment managers balance investors\u2019 desire for both financial gains and positive [&hellip;]","og_url":"https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/","og_site_name":"Test 3","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"11 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/","url":"https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/","name":"Fall 2024 Workshop - Test 3","isPartOf":{"@id":"https:\/\/questromworld.bu.edu\/test-3\/#website"},"datePublished":"2024-04-11T16:00:39+00:00","breadcrumb":{"@id":"https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/questromworld.bu.edu\/test-3\/events\/fall-2024-workshop\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/questromworld.bu.edu\/test-3\/"},{"@type":"ListItem","position":2,"name":"Events","item":"https:\/\/questromworld.bu.edu\/test-3\/events\/"},{"@type":"ListItem","position":3,"name":"Fall 2024 Workshop"}]},{"@type":"WebSite","@id":"https:\/\/questromworld.bu.edu\/test-3\/#website","url":"https:\/\/questromworld.bu.edu\/test-3\/","name":"Test 3","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/questromworld.bu.edu\/test-3\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/questromworld.bu.edu\/test-3\/wp-json\/wp\/v2\/pages\/1975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/questromworld.bu.edu\/test-3\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/questromworld.bu.edu\/test-3\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/questromworld.bu.edu\/test-3\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/questromworld.bu.edu\/test-3\/wp-json\/wp\/v2\/comments?post=1975"}],"version-history":[{"count":0,"href":"https:\/\/questromworld.bu.edu\/test-3\/wp-json\/wp\/v2\/pages\/1975\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/questromworld.bu.edu\/test-3\/wp-json\/wp\/v2\/pages\/668"}],"wp:attachment":[{"href":"https:\/\/questromworld.bu.edu\/test-3\/wp-json\/wp\/v2\/media?parent=1975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}