In this episode, Nathan Fabian, Chief Sustainable Systems Officer at the PRI, examines rising economic inequality and why it poses a material, systemic risk for long-term investors. He is joined by Delaney Greig (Director of Investor Stewardship, University Pension Plan Ontario), Emma Douglas (Sustainable Investment & Stewardship Lead, Brightwell; BT Pension Scheme), and David Wood (Adjunct Lecturer in Public Policy, Harvard Kennedy School).

Together, they explore how inequality affects economic stability, corporate performance, long-horizon portfolio returns, and what asset owners can do to respond.

Ten years after the adoption of the SDGs, inequality is increasing across major economies. The top 1% now holds over 40% of global wealth, and widening gaps in income, labour rights and access to opportunity are shaping economic and political outcomes.

The guests discuss:

• Why inequality is a non-diversifiable, systemic risk
• How it undermines growth, resilience and productivity
• The implications for diversified investors
• The interplay between inequality, climate, nature and social outcomes
• How asset owners can use stewardship, integration and policy engagement to address key drivers

Delaney and Emma outline why rising inequality threatens long-term returns: weakening demand, increasing volatility, reducing workforce resilience, and fuelling political instability. Both highlight evidence linking excessive pay gaps and poor labour practices to weaker corporate performance.

David summarises major findings from the IMF, OECD and others showing that inequality constrains growth rather than accelerates it. He notes that investors have clearer data and frameworks today than ever before, and that social issues have become central to responsible investment.

Emma discusses a new analysis tool developed with Cambri to map social risks across sectors, revealing under-examined areas such as technology, media and natural-resource-intensive industries.

Delaney explains UPP’s “top-and-bottom guardrails” approach, engaging on excessive executive pay at the top and fundamental labour rights at the bottom.

The panel discusses:

• Embedding social risks into investment processes
• Sector-level prioritisation
• Collective action on labour rights
• The emerging TISFD standard
• How investors should (and should not) engage in political debates around taxation, labour markets and redistribution

Guests reflect on:

• Strengthening investor–manager dialogue
• Integrating inequality into capital allocation decisions
• Opportunities in areas such as affordable housing
• Addressing market concentration and competition issues
• The need for aligned, collective advocacy from asset owners
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(0:00) - Introduction: Economic Inequality and Investment Risk

(2:29) - Delaney Greg: Why Inequality Matters for Pension Plans

(4:50) - Emma Douglas: Systemic Risk and Investment Opportunities

(7:16) - David Wood: Research on Inequality and Growth

(9:21) - Understanding the Drivers of Economic Inequality

(11:51) - Emma's Approach: Using Data and AI for Social Risk Analysis

(15:01) - Delaney's Strategy: Top-End and Bottom-End Guardrails

(17:55) - Measuring Impact and Defining Success in Inequality Work

(20:16) -...