WHEN: Today, Wednesday September 29e
O: CNBC Delivering Alpha Conference
Here are excerpts from the unofficial transcript of an EXCLUSIVE CNBC interview with Carine Smith Ihenacho, director of corporate governance and compliance at Norges Bank Investment Management, Wendy Cromwell, vice president of Wellington, and Christopher Ailman, CalSTRS Chief Investment Officer, CNBC Delivering Alpha conference, which took place on Wednesday, September 29e.
Mandatory Credit: CNBC Delivering Alpha Conference
WENDY CROMWELL ON CLIMATE CHANGE
We’re stuck in ESG terminology or nomenclature, but if you just take a big step back and think about some of the major trends shaping our company’s economies and society going forward, sure, everyone would agree that climate change is a mega trend. And that investors need to study it, and companies need to prepare for it.
WENDY CROMWELL ON ESG METRICS
We believe that it would be useful to harmonize these rules if they are not exactly aligned and harmonized with the rules that we see emerging in other jurisdictions so that we do not operate in a multi-framework environment as a global investors.
CHRISTOPHER AILMAN DECLARING IF THE ASSET MANAGEMENT INDUSTRY IS ESG-CENTERED
There is no doubt that there are asset managers who simply use these words because it is a marketing tool. There are a few asset managers who actually think this is material and important to their investment process. And it’s really hard because right now, a lot of polls, tick the exercise box, do you believe in ESG? Do you have an ESG product? Check yes, then you will find that there is not much you can do in this case.
CHRISTOPHER AILMAN ON THE ESG ASSIGNMENT
Instead of just giving Exxon and turning its back and letting someone else own the shares, we took this advice, we changed that advice, and we are really changing this company from top to bottom. It’s a giant company, it’s going to take a long time, but I think it’s a huge change. Divestment does not reduce the amount of carbon in the atmosphere, the engagement, so I cannot stress enough. I wish divestment would solve the world’s problems, wouldn’t it be so easy and enjoyable. But, you know, when it doesn’t, engaging and changing people’s attitudes, turning around business is what’s absolutely critical right now.
CHRISTOPHER AILMAN ON ESG DATA
You can look at pictures, but the diversity of thought is hard to measure, but we actually get statistics on some of these things through all the data services that inform us as investors and then we can rate the portfolios. , then we get to the truth of whether they really interact and energetically inject ESG into their process.
CHRISTOPHER AILMAN ON DIVERSITY OF THOUGHT IN THE COUNCIL ROOM
You cannot be inside the meeting room. But, but trying to look at diversity and background, then relationships, and really trying to analyze the words, try to determine if a board is independent from the CEO and really thinks for itself, or if he is all held captive.