Aristocrat is planning an event for its biggest investors that is devoted to environmental, social, and corporate governance concerns... aka ESG.
👉 Background: Aristocrat Leisure is the ASX-listed gambling company that manufactures pokies machines and creates gaming content.
👉 What happened: Now, Aristocrat is planning an event for its biggest investors that is devoted to environmental, social, and corporate governance concerns... aka ESG. That's because Australians lose about $25 billion a year to gambling, which is more per capita than any other country in the world.
👉 What else: As a result, a large number of Aristocrat's investors are wary of its business model, including many super funds who are some of their largest investors.
💡Super funds are walking a tight-rope between strong performing investments and ESG ambitions.
💡Super funds are set up to support its members during its retirement stage, so they need to deliver strong returns. But they also want to demonstrate that they have a strong conscience because they are investing on behalf of everyday Australians.
💡Gambling stocks have gained an average 300 per cent over the past decade, which is about 10 times that of the ASX 200 index. So, large super funds either need comfort that Aristocrat and others in the space are satisfying ESG metrics or potentially divest their investments.
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