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Charles Albright works for a firm of wealth managers. Charles meets with Adrianne McClintock about the benefits of integrating ESG into investment strategies. Charles explains
Charles Albright works for a firm of wealth managers. Charles meets with Adrianne McClintock about the benefits of integrating ESG into investment strategies. Charles explains to Adrianne that many companies now recognize the importance of sustainability and that triple bottom line accounting, rather than being concerned only with financial reporting, can give a more in-depth understanding of a company's value and prospects. He identifies the three pillars of triple bottom line accounting as: i) Economic growth ii) Environmental protection iii) Social progress Adrianne tells Charles that she has a concern that if she has her assets managed by an ESG asset manager, then the goals of the asset manager might not mirror her own. Charles gives two responses to this concern: Response A: This concern is known as the agency problem. Response B: An investment mandate is a suitable way to manage this
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