Gen Z are driving ESG efforts and Sara Araghi knows why

Gen Z are driving ESG efforts and Sara Araghi knows why

Sara Araghi is a vice president for Franklin Equity Group. She manages multiple portfolios and in her research specialises in the analysis of media & entertainment, satellite & cable, apparel and footwear production industries.

Her background has always had a strong consumer focus. She joined Franklin Equity Group in 2003 as a equity research associate on the consumer team and cut her teeth working with strategy team leaders to devise and sustain investment portfolios on mandates ranging from All Cap Growth to Mid Cap Growth and Small Cap Growth.

This broad overview of the marketplace has given Araghi a unique and authoritative perspective on consumer habits. And she has identified a shift in priorities following COVID-19 and social justice movements across the world over the past year. Consumers are now demanding increased prioritisation of environmental, social, governance factors. She believes that companies are being scrutinised more now than ever before when it comes to diversity in hiring practises and their commitment to reducing carbon emissions and resource consumption. Generation Z consumers are now being actively marketed to on social media channels regarding brands’ ethics and sustainability. Araghi forecasts that ‘brands that really care’ will be those who will ultimately profit in the sectors of food, footwear, apparel and across the consumer economy.

She has also given comment on the current state of the supply chains feeding the global consumer industry. In the short-term she recognises that supply chains are still blocked and that due to its swift post-pandemic recovery, China seems to have retained its dominance. But looking further ahead, she predicts that the diversification of supply chains into other regions of Asia, Mexico and Latin America, will not only resume but accelerate. She sees strength in this diversification.

Now Araghi’s sights are set on identifying the winners coming out of the pandemic in the long term, rather than being distracted by tides currently rising in the wake of market stimulus. She has noted that other investors are not drawing a distinction between these two groups and is keen to differentiate for the benefit of her clients.

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