Thomas Keck on ESG
From Tom Keck, '97, partner at StepStone Group - Distinguished Speaker Series · · The University of Chicago Booth School of Business
“Greenwashing is definitely a big problem. Measurement, transparency, and disclosure are aimed exactly at that issue. To the extent that we can avoid situations that are effectively greenwashing, that's value added to our clients. We spend a lot of time thinking about this risk.”
On , Thomas Keck, Partner, Head of Research and Portfolio Management & Director at STEPSTONE GROUP INC, spoke about ESG during Tom Keck, '97, partner at StepStone Group - Distinguished Speaker Series on The University of Chicago Booth School of Business.
About Thomas Keck
In a September 2021 distinguished speaker series at the University of Chicago Booth School of Business, Tom Keck, a partner and head of research and portfolio management at StepStone Group, discussed the firm's approach to responsible investing and ESG (environmental, social, and governance) practices. Keck described ESG as a framework for analyzing risks and opportunities in any business, noting that the U.S. lags behind Europe and Australia in ESG adoption. He acknowledged that "greenwashing" is a significant problem and said that measurement, transparency, and disclosure are aimed at addressing that issue. Keck also discussed StepStone's efforts to lower entry barriers for smaller investors accessing private funds, describing a new product that uses data and techniques to intermediate small investors and create liquidity. Keck commented on market trends, stating that SPACs (special purpose acquisition companies) are "interesting" but that he is "not a big SPAC investor," noting that while SPAC economics are "amazing for sponsors," terms remain "egregious" for investors. He observed that margins in investment management have been declining, particularly in public markets due to passive strategies, while private markets have held margins better due to inefficiencies. Regarding hiring, Keck said StepStone has broadened its funnel to seek candidates with harder-to-teach skills like dealing with ambiguity, and that the firm teaches easier technical skills internally. He also identified industries where information technology has not yet taken hold, such as agriculture, as areas of opportunity.