ESG, Meet Fiduciary

ESG (environmental, social, and corporate governance) is a framework designed to be embedded into an organization’s strategy that considers the needs and ways in which to generate value for all of the organizational stakeholders, including, employees, customers, suppliers and investors. 

A fiduciary is a person or organization that holds a legal or ethical relationship that requires the prudent care of money or other assets for another person. 

While these are not necessarily mutually exclusive obligations, sometimes they are.  For example, Australia’s pension funds are facing an important crossroad as individuals seek to save for retirement.  Australia’s dominant and very successful resources industry, which has resulted in the country becoming a major exporter of fossil fuels and minerals, creates a real dilemma for investors wanting performance while pursuing zero-emission goals. 

Sigma is a fiduciary.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA