Innovation In Compliance With Tom Fox

Tom Fox chats with Senior Managing Director of State Street Global Advisors, Rakhi Kumar, about some of her company’s initiatives to make Environmental, Social and Governance (ESG) more approachable for business leaders. Building For The Future Rakhi says that risk keeps evolving and that ESG is a new type of risk. ESG issues tend to be seen as intangibles and nonfinancial. However, they create long term value for the company if managed correctly. She says that State Street’s mission is to invest responsibly to enable economic prosperity and social progress. This means they manage for the long term, which is why social issues inform their strategy. “From a fiduciary perspective what we keep focus on is financial materiality and research informing our decisions ... to ensure we're focused on value creation,” Rakhi notes. “ESG is an opportunity to build for the future and create long term value.” Improving ESG Reporting Tom comments that State Street’s research found that less than 25% of companies they evalu