In this year’s summer series on PA Future, we have asked junior members of ESG/sustainability teams to answer our questions on career paths, red flags and personal passions, to showcase the ‘Next Generation‘ of talent coming through.
Candidates needed to be a member of a fund management, ESG/sustainability or stewardship/engagement team with less than five years’ experience.
Here, Eleanor Walley, assistant sustainability analyst at Castlefield, discusses her strong interest in sustainability from a young age, the power of active engagement and how Castlefield has refined its approach to engagement to account for the credibility challenges of climate targets.
How did you start your career and what led you to focus on ESG/sustainability? Is this a personal passion?
I developed a strong interest in the environmental and social dimensions of sustainability whilst studying geography at university. Looking to pursue this in my professional career, I initially worked for an environmental consultancy where I deepened my knowledge of corporate sustainability. I became well aware of the investment industry’s leverage and ability to steer businesses towards more sustainable practices. This is ultimately what led me to Castlefield, a company where sustainability and investment intersect. I feel fortunate to work with like-minded individuals at a company that is committed to integrating ESG and sustainability considerations into its investment approach.
You joined the industry around two years ago, when appetite and launches in this area of investment soared. What was that like to experience as a relatively new starter to the industry?
The rising demand for ESG and responsible investment is what initially prompted me to educate myself further and explore career opportunities in this field. As a new-starter, this was an exciting time to enter the industry – the strong appetite for this approach to investment was evident in my everyday interactions with other asset managers, as well as colleagues and clients.
And what has it been like for you over the past few years where appetite has waned, and we have experienced the anti-ESG backlash in some areas?
Undoubtedly, the anti-ESG backlash has presented challenges for the industry. Many firms began to pull back on talking about ESG and sustainability, commonly referred to as ‘greenhushing’.
Personally, I have not felt strongly impacted by the ‘backlash’ as many of our clients hold strong views on sustainability issues and do not want to compromise on their ethics and beliefs. As such, clients often approach Castlefield specifically because of its specialism in responsible investment.
Effectively managing material ESG risks, before they materialise as financial risks, is fundamental for business longevity and success. As stewards of our clients’ assets, we see the benefit in adopting an approach that delivers long-term and sustainable value, rather than being driven by short-term performance pressures. Key to this long-term outlook is regular engagement with investee companies on a range of ESG challenges such as climate change, human rights and employee wellbeing, to name a few.
What has been a career highlight for you?
I feel fortunate to have discovered a career that aligns with my personal interests and a particularly rewarding element of the role is engaging with companies on material ESG issues. Building a long-term and constructive relationship with investee companies is key to our approach and helps us engage in meaningful dialogue.
Although not all engagement will result in direct or immediate improvements, it is fulfilling to witness companies taking positive action – for example, improving sustainability-related disclosures or undertaking a sector-leading approach on a specific issue. The publication of our Annual Stewardship Report has been a highlight for me this year, as it showcases many of these company engagements and demonstrates the value in holding companies accountable.
What is a red flag for you in terms of greenwashing? Are you happy to hold companies or individuals accountable for greenwashing?
Greenwashing manifests itself in many ways and one particular area that I have noticed this is corporate net-zero and climate targets. Distinguishing between the credibility of climate targets can be challenging and it is an issue that we have sought to address through ongoing company engagement over the past three years. Helpful indicators of credibility that we look out for include science-based targets and a detailed roadmap setting out interim targets and milestones. This year, we refined our approach to focus engagement efforts on companies that we identified as ‘laggards’ – those without a net-zero target in place, or companies with targets that lack in ambition (i.e. a target date of 2050 or later, or targets that do not account for Scope 3 emissions).
Fast forward to five years from now – where would you like to be in terms of career aspirations? And how do you think the industry will have evolved by then?
Looking ahead, I aim to continue progressing in the field of responsible investment with a particular focus on influencing positive change through active ownership. Systemic challenges such as climate change and social imbalances persist and companies must take action.
In terms of the industry, regulatory regimes such as the incoming fund labelling scheme (SDR) will drive up standards in the industry by requiring funds promoted as ‘sustainable’ to meet the requirements of a sustainability label. This should make it easier for consumers to navigate the landscape of sustainable investment products, promote greater consumer trust in the industry and reduce the threat of greenwashing.
