In a recent episode of the Sustainability Exchange podcast, hosted by Travers Smith’s Simon Whitney, Trysha Daskam-Smith, Managing Director & Head of ESG Strategy at Silver, joined Michael Raymond, a partner in the Financial Services & Markets Department at Travers Smith, to explore a timely question: what should European fund managers say to U.S. investors about ESG?
Their answer: stay clear, stay consistent, and above all else, stay factual. “Pick the term that reflects your approach,” Trysha advised. “Then define it clearly and make sure your teams use it consistently.”
Below is a link to the full episode, as well as some key takeaways from the discussion:
🎧 Listen to the full episode here
Key Takeaways
- ESG Means Different Things on Different Sides of the Atlantic: As Trysha explained, “ESG” can trigger confusion – or even controversy – in the U.S. Many investors and regulators conflate it with impact investing or political agendas, especially in Republican-led states like Texas and Florida. To avoid backlash, she recommends using alternate terms like “sustainability” or “risk-based considerations” when describing ESG integration.
- Focus on Risk, Not Rhetoric: Both speakers emphasized reframing ESG as part of a firm’s overall risk management and value creation strategy. “This isn’t about values, it’s about financial materiality,” said Trysha. Michael agreed, noting that managers should block out headlines and instead communicate clearly about what their strategy offers and why it matters.
- One Fund, Many Audiences – So Stay Consistent: With most firms offering a single flagship fund across regions, consistency is key. “You cannot promise ESG integration to your EU LPs and then ignore it when talking to investors in Florida,” Trysha noted. Aligning internal messaging, disclosures and policy frameworks across jurisdictions helps prevent confusion and protects credibility.
- Prove ESG Value with Policy and Process: Trysha highlighted that ESG integration should be evident at diligence, investment committees and in reporting. Consistent metrics and KPIs allow firms to demonstrate value over time without raising red flags in more politically sensitive markets.
- Regulatory Nuance and the Road Ahead: The conversation also touched on Article 8 funds, DEI disclosures and state-level ESG divergence. While regulatory landscapes differ, the common thread remains: investors want clarity, and regulators demand consistency.