Fiduciary Duty – Ken Pucker http://kpp.active-interactive.com Writer, Investor, Advisory Director, Berkshire Partners - Professor of Practice, Fletcher School Tufts University Thu, 08 Aug 2024 15:37:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 http://kpp.active-interactive.com/wp-content/uploads/2022/07/cropped-PhotoKP-32x32.jpeg Fiduciary Duty – Ken Pucker http://kpp.active-interactive.com 32 32 Vanguard Confronts an Inconvenient Truth http://kpp.active-interactive.com/articles/vanguard-confronts-an-inconvenient-truth/ Mon, 24 Apr 2023 17:50:49 +0000 http://kpp.active-interactive.com/?p=404 Vanguard Confronts an Inconvenient TruthVanguard had previously joined the Net Zero Asset Manager’s initiative (NZAM) in 2021, but withdrew 21 months later, citing confusion about individual firms’ views. Vanguard is unique in its ownership structure, commitment to passive index-based low-fee funds, and focus on retail investors. It has taken a more cautious approach to ESG investing and doesn’t heavily rely on external ESG ratings services. Critics argue that Vanguard should compel companies to decarbonize to prevent portfolio losses, but this overlooks asset managers’ primary duty and overstates ESG investing’s impact. Vanguard believes that addressing climate change requires governmental action and that the industry should aggressively endorse this path. Regulatory changes clarifying sustainable investing and a bifurcation of ESG investing can enable more authentic decarbonization. Vanguard’s NZAM withdrawal acknowledges the limits of win-win ESG “solutions” and clarifies the path to urgent decarbonization.

https://hbr.org/2023/04/vanguard-confronts-an-inconvenient-truth

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