Langley: No, not at all. Our managers have always had a passion for sustainable investing and they consider it critical to how they run money. Emerge is taking a practical approach to ESG and sustainability. We advocate for fossil fuel companies if they are actively investing in renewables and fostering a future with lower carbon emissions. However, we wouldn’t have planes in the sky without fossil fuels, so excluding these without further analysis currently doesn’t make sense.
We are very serious about diversity and inclusion. We want to see more than two token women directors. We want to see more women in executive positions and senior leadership roles at companies. Industry ESG databases are often not able to get all the data needed, so we need to use multiple sources to gain a bigger lens. All companies do not pursue sustainability the same way, and I believe Emerge’s focus on diversity & inclusion along with sustainability will go a long way.
WP: Some might question the timing of this launch, given the recent challenges sustainable funds and ETFs have been facing both in terms of performance and fund flows. How would you respond to that?
Langley: Emerge is launching a suite of ETFs which sends a message to the industry. We believe the best time to communicate a new message can also be when the market conditions are more challenging. An “all-woman-managed – all sustainable” fund suite doesn’t launch every day, and we want to be an example to encourage more women fund managers around the world.
Our investment managers have strong and significant experience and are up to the task. Now is the time for talented managers to navigate this post-pandemic-inflationary market cycle and succeed. The best strategies launch when the markets are their murkiest, and we are confident of the road ahead.
