When trying to understand the environmental, social, and governmental dimensions of a potential investment, what kind of approach will provide the clearest picture? In this episode, Tom Fox talks to J.R. Lowry, a senior vice president at State Street Global Exchange™, about State Street’s innovative new tool for identifying and tracking ESG factors and its potential applications for compliance issues.

  • What are ESG factors and why are they so important to understand in-depth? J.R. provides a succinct overview of the various ways ESG factors play into a company’s financial performance – and ultimately, the health of a portfolio.
  • When it comes to managing risk, more information is always better than less. Tom and J.R. discuss how ESG factors relate to traditional performance analytics and the importance of understanding their significance when navigating new global developments in financial regulation.
  • From an investor’s perspective, what is the value of looking at ESG factors when considering the ROI potential of a company? What can this kind of information provide that a standard financial assessment might not? J.R. stresses the role that an ESG report can have on critical investment decisions.
  • Tom turns to State Street’s ESGXSM tool and the nuts and bolts of State Street’s approach to providing ESG data to their clients. J.R. provides a description of what the tool is, how it works, and what it can do for investors concerned with ESG factors.
  • As an analytics tool, the ESGXSM implements both human and machine-led data streams to manage risk and assess performance – but can also be used to ensure compliance. Tom and J.R. talk about how companies, individuals, and portfolio managers can use this two-pronged approach in the areas of risk, performance and compliance.

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