Fate Saghir

Saghir moved onto strategy, mergers and acquisitions, and business development type roles, but it was when she moved into asset management through a previous firm that the concept and power of sustainability and responsible investing revealed themselves to her. At the time, many data providers were starting to build frameworks around how to assess companies’ financial risks, and Saghir learned more about the attributes and methodologies used.

Mackenzie, an investment firm committed to sustainable investing practices and education, named Saghir Head of Sustainable Investing in 2019, where she has since implemented sustainable investing as a core pillar at the firm. The firm provides its clients with information on the fastest-growing clean technology through a wide range of investment products and services for individuals and institutions. They released a Green Impact Report to statistically showcase impact and are the force driving investments in the energy transition, which is a multi-trillion-dollar investment opportunity. They promote sustainable investing through educational means such as articles, podcasts, and informative videos.

Saghir currently oversees investments and helps guide ESG integration across portfolios representing thousands of companies globally and built the frameworks for over 200 investment professionals at Mackenzie to evaluate financial risk environmentally and socially. She explained that without factoring in the additional risks that are going to impact the financials, they aren’t able to make a strong return on the companies. Her team at Mackenzie connects with investment professionals to let the companies know that, for example, their warehouse has a huge exposure to physical risk of natural disasters, for example, and so they may predict that they’ll lose money due to this risk over the next few years. “ I think where we’ve been unique is with the shifting change and narrative in the political environment,” she said.

Due to the shifting political environment, Saghir says that many companies have had to step back, and market strategy needs to be considered and thus align with company values. If Saghir were to give the United States sales team at Mackenzie a choice of either selling into a California market or a Texas market, they’d pick California.“You’re not going to sell into both, because what California wants is very different. And so we’ve forced them to make those trade-offs…California, you know, is one of the largest economies. And so we’re going into California. And that aligns with our values as an organization and with the approach that we’ve put in place,” said Saghir.

With 2020 as a turning point in both sustainable investing, environmental awareness, and with COVID-19,  Saghir says it’s proof we have the ability to control pollution. “I think we probably took five steps forward. Say it, but I think we now probably take in things that have been adjusted, and maybe we’ve taken two steps back, but we’ve still made tremendous progress. And so I think that’s the positivity.”

Saghir’s work in ESG, providing companies with parameters to evaluate environmental risk, establishes that investing sustainably is grounded in solid financial analysis. Global progress has been made when it comes to financial reporting; companies operating in the United States and internationally must report under either international standards or U.S. Generally Accepted Accounting Principles. Using artificial intelligence, which can help make grids smarter and more efficient, does come at a cost. AI’s water and energy consumption raises serious environmental concerns.

“When you think about a lot of these technology companies, the Microsofts, and Nvidia, like all these companies that are building, you know, chat, chatbots, and so on. Their biggest risk right now is water. And in the U.S, especially when you think about the western seaboard, it’s so many challenges, right? There’s friction between the states and the federal government and who owns what they’ve got.” Saghir said that AI poses a threat to water scarcity issues; if there is limited fresh drinking water, should it be put towards data centers? How much can you truly recycle?

Saghir emphasizes the importance of changing consumer behavior to help them be more aware of the environment. She mentions how California has been one of the states most visibly affected by climate change in recent years, and that because of this, Californians’ opinions about tackling climate change tend to be more profound. “I do think as humans, we, you know, I think we’ll ignore it until it starts to become our own reality.”

Changes in sustainable investing are happening in real time. A thermal coal policy was just rolled out at Mackenzie, placing restrictions on investments in thermal coal. She says that investors are moving away from investing in non-thermal coal because they understand the risks and implications, and that, as greenwashing legislation is rolled out, investors are setting the expectation and ensuring that companies are still making progress.

Saghir took on Mackenzie’s marketing team a couple of years ago, and just last year, they launched an experience team.“I found this incredible area where you’re able to make an impact on generations to come, a positive impact, while also, you know, earning a living. And so that’s, that is the space that I want to be in…and it just goes back to having that strong sense of purpose…go as big as you can, right?”