ESG Under Scrutiny (October 6, 2022)

Caroline Hyde: Bonnie, it's interesting because your title is not only portfolio manager but you're head of ESG investments. And all most ESG, the focus there on, took a back seat, took a hit in terms of, well, what everyone thought ESG was. How are you looking at this at the moment? How are you seeing investment opportunities within the world of an environmental focus, a societal focus, a governance focused.

Bonnie Wongtrakool: I think the opportunities are better now than they were before because there is more scrutiny, both from a regulatory standpoint and also from an investor standpoint. I think people are more educated about it, and when they're looking to do ESG investments, there is more a demand for something that actually fits that ESG bill. So for us at Western, when we are managing ESG mandates, we are looking for that. We're looking for something that has a positive impact that isn't simply perhaps rated by a third party, third party ratings vendor as being positive ESG, but really doesn't have that behind it. We have our own approach. We have our own proprietary ratings, and we're looking to make sure that there isn't greenwashing when we're evaluating ESG opportunities, particularly within the ESG labeled bond space, when you're talking about green bonds or sustainability linked bonds, which have been a huge source of growth within the market.

Caroline Hyde: Bonnie, we thank you so much for joining us. Bonnie Wongtrakool, of course, portfolio manager, head of ESG investments over at Western Asset Management. Thanks for joining us in the afternoon. Come back.