OUR GUEST in S1E6: Erika Karp, Chief Impact Officer at Pathstone.
I am pleased to welcome to the ESG and Coffee Podcast my next investor guest, Erika Karp, Chief Impact Officer at Pathstone, in episode 6 of our first series of long form interviews, “The Originals”. I first met Erika in a skyscraper in lower Manhattan while on the global roadshow launching the Access To Nutrition Index in 2013. Erika was heading investment research at UBS and spoke as the institutional investment expert. I respected her experience and candor answering a question on paying investment analysts.
In S1E6 of ESG AND COFFEE PODCAST you will hear Erika’s describe the trade-offs in ESG, with her take on BASF as the “most sustainable chemicals company” and the problem of Apple suppliers with military dual use technology. You will hear of Erika’s willingness to pay the way on engagement with companies, partnering with NGOs like As You Sow in San Francisco.
Erika had her advisory and investment shop Cornerstone acquired by Pathstone Family Office, LLC in Sep 2020 closing March 2021. Pathstone is getting close to $30 billion AuM. This fits the pattern of the whole investment industry trying to bulk up on the missing ESG skills, through “acquihires” if necessary.
There’s complexity of ESG: it takes time, and shifting dimensions of what is material. Erika doubles down on smiting the 4 myths she first explained in Jan 2020 on Wall St Week (see below). And she knows the costs. “What we have done over decades has been an incredibly heavy lift” and an opportunity to look back and to take a minute. Greatest achievement is growing purpose driven company and merging it.
Erikas says ESG starts with G=governance, citing the example of the long shadow of poor governance that gave us the drama of #dieselgate at VW - and other automobile OEMs cheating on their emissions tests like Peugeot, Fiat, BMW and Mercedes Benz. But what German iconic car is Erika’s extravagance?
Erika’s definition of “sustainable investment” is the systematic analysis of material ESG factors in any investment process, that sustainability is a discipline, not a style, not a strategy, not an asset class.
Stay after the close for our BONUS TAPE where we kick back with some reflections on the interview. As always at the very end, I summarize in 5min the interview HIGHPOINTS, and what was unexpected. Have a look at the detailed show notes below on https://www.esgandcoffeepodcast.org/ for the details.
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Thank you for listening.
Host of @ESGandCoffee podcast.
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