As AI fuels a wave of data centre investment, the industry's ability to earn and maintain community trust is becoming a critical factor in its long-term success. 

Elise McKay, analyst and portfolio manager in Pendal's Australian Equities team, explains why social license is emerging as one of the most important non-financial risks facing companies and how active investors can help ensure growth is delivered responsibly.

Here's an excerpt from the video podcast:

"The way I think about social license is it's the informal approval or permission that you need from the community in which you operate to operate your business," she says. 

"You might have all the planning approvals and legal permits in the world, but if you don't have community backing, that could ultimately prevent you from being able to grow and move your business forward.

"Social license is the most important non-financial risk that data centres face in today's world.  

"The key issue with non-financial risks is that ultimately one day they may become financial risks. If data centres locally lose their social license, that limits a huge growth engine not only for the data centre industry but for our economy overall."

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Find out more about Pendal Horizon Sustainable Australian Share Fund 

Pendal is a global asset manager. Find out more at pendalgroup.com

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This podcast has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332 AFSL 431426.

It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice.

The product disclosure statement (PDS) for the Pendal Horizon Sustainable Australian Share Fund (Fund), issued by PFSL, should be considered before deciding whether to acquire, dispose, or hold units in the Fund. The PDS and Target Market Determination can be obtained by calling 1300 346 821 or visiting our website www.pendalgroup.com.

This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PFSL does not warrant the accuracy or completeness of any information provided by a third party.

To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. All investing involves risk including the possible loss of principal.

As AI fuels a wave of data centre investment, the industry's ability to earn and maintain community trust is becoming a critical factor in its long-term success.&nbsp;
Elise McKay, analyst and portfolio manager in Pendal's Australian Equities team, explains why social license is emerging as one of the most important non-financial risks facing companies and how active investors can help ensure growth is delivered responsibly.
Here's an excerpt from the video podcast:
"The way I think about social license is it's the informal approval or permission that you need from the community in which you operate to operate your business," she says.&nbsp;
"You might have all the planning approvals and legal permits in the world, but if you don't have community backing, that could ultimately prevent you from being able to grow and move your business forward.
"Social license is the most important non-financial risk that data centres face in today's world. &nbsp;
"The key issue with non-financial risks is that ultimately one day they may become financial risks. If data centres locally lose their social license, that limits a huge growth engine not only for the data centre industry but for our economy overall."
--//-- Find out more about <a href="https://pendalgroup.com/products/asset-class/responsible-investment-funds">Pendal Horizon Sustainable Australian Share Fund</a>&nbsp;
Pendal is a global asset manager. <a href="https://www.pendalgroup.com/">Find out more at pendalgroup.com</a>
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This podcast has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332 AFSL 431426.
It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice.
The product disclosure statement (PDS) for the Pendal Horizon Sustainable Australian Share Fund (Fund), issued by PFSL, should be considered before deciding whether to acquire, dispose, or hold units in the Fund. The PDS and Target Market Determination can be obtained by calling 1300 346 821 or visiting our website www.pendalgroup.com.
This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PFSL does not warrant the accuracy or completeness of any information provided by a third party.
To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor&rsquo;s capital. All investing involves risk including the possible loss of principal.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.