Our June DEI Leader Network event featured a panel discussion with investing experts Kathryn McDonald with RadiantESG and Jeff Gibbons with Bridge House Advisors. Kathryn brought the perspective of public equity to the conversation while Jeff focused on the private equity side. We started off by asking both panelists why investors pick responsible companies.
“We look for responsible companies because above all else, these are firms that we think are better positioned for the future,” Kathryn responded. “Viewing companies through a responsible lens gives us an additional dimension of analysis to make our investment assessment of companies more robust.” Jeff added, “ESG is just a proxy for good business – this is good for business and it’s good for returns.”
Both panelists talked about how investors measure responsibility, noting the differences between private and public companies and that it all really comes down to what is material for a particular company. Diversity Works created an Investor Strategy Worksheet to help companies determine what their own investors are likely to look for when evaluating responsible business practices.
We ended the session by discussing how DEI fits into the broader issue of responsibility. Kathryn noted, “There is just an abundance of research at this point [on DEI driving results], and we’ve seen it empirically within our own investment practices – companies that are more diverse have economic advantages relative to their peers in terms of attracting workers, attracting new customers, and better innovation time.”
Please visit our YouTube channel to view the discussion and get in touch if you’d like to learn more about how investing in DEI can give your company a strategic advantage.
About Diversity Works
Diversity Works helps organizations understand and leverage the power of workplace diversity, equity, and inclusion.