By: PRI
OVERVIEW
Economic inequality, understood as the gap between the rich and poor in income and wealth, has received extensive and continuing attention in public and academic discourse across the globe since the financial crisis.1 New research on the nature, causes and consequences of inequality seems to come every week, and considerable political discussion occurs within and between governments. In some ways, the contours of the discourse on inequality parallel those of climate change – in terms of responsible investment, inequality is emerging as a paradigmatic instance of the S in ESG, as climate risk is to the E.
Furthermore, there are active calls on private sector investment to redress inequality. Perhaps most prominently, the United Nations explicitly calls on private investors to engage on the Sustainable Development Goals – and SDG 10: Reduced Inequalities – is perhaps a sign that a focus on inequality reduction may become part of the political- economic environment in which investors work.
The PRI roundtable series is a key opportunity to advance the discussion about the impact of economic inequality on the long term performance of investment portfolios and the potential strategies investors can employ to mitigate the risks of inequality. Following this series, research will be commissioned that addresses questions raised from the events. We look forward to your feedback.