ESG and Responsible
There is no ‘one size fits all’ when it comes to Responsible Investment, Sustainable Investment, ESG or Impact Investing: our clients have an extremely varied range of needs and priorities. We have extensive experience supporting investors in these areas since 2005, covering issues such as ESG risk management, carbon, gender and ethnic diversity, active engagement, alignment with the UN Sustainable Development Goals and much more.
OUR ESG COMMITMENTS:
We support our clients in developing and implementing investment approaches designed around their specific ESG needs and objectives, with a breadth of experience across all liquid and illiquid asset classes.
We incorporate ESG-related factors in all manager selection engagements, gathering core ESG data as well as further quantitative and qualitative ESG information based on specific client needs.
We work to promote better industry understanding of ESG issues, which we believe can have a material impact on long-term investment outcomes. This includes publishing informative educational research on key subjects, supporting relevant initiatives or bodies listed below and providing managers with direct feedback on how they compare against peers in this area.
We pursue strong ESG governance, with responsible investment and ESG matters overseen by a Responsible Investment Committee that reports directly to the firm’s Board.
And, finally, we strive for excellence as a firm on all aspects of Corporate Social Responsibility, conducting business with integrity, in accordance with the highest ethical standards and in an environmentally and socially responsible manner.
SUPPORTING DIFFERENT ESG APPROACHES
There are many approaches to addressing Environmental, Social and Governance issues. Our work with clients around the globe encompasses a wide range of practices, often used in combination with each other. In all areas we aim to deliver clarity in the face of the ESG marketing and box-ticking that is increasingly prevalent across the asset management industry, helping investors to implement robust approaches and identify partners that are genuinely aligned on issues of substance.
|Negative screening||Screening out sectors or companies that are inappropriate for the investor, such as weapons manufacturers or tobacco firms.|
|ESG integration||Including ESG considerations in investment processes and investment decision-making. Sometimes described as a dimension of risk management.|
|Active engagement||Exercising direct or indirect engagement to encourage responsible practises among investee companies, including active ownership in the case of equities (voting and engaging with management).|
|Thematic investing||Specific ESG-orientated investment strategies including renewable energy infrastructure, social housing. These can be within the context of a specific sustainable investment allocation or (more commonly) as a standard part of the portfolio.|
|Impact investing||Sometimes viewed as part of thematic investing, “impact investing” now broadly refers to investment whether there is an intention to derive and measure social/environmental outcomes. Reporting on impact can increasingly be obtained for any of the categories above, and may be aligned with the UN Sustainable Development Goals.|
MEMBERSHIPS AND INITIATIVES
We support a wide range of industry initiatives relating to this subject, including:
- Principles for Responsible Investment
- Investment Consultants Sustainability Working Group
- Pensions for Purpose
- AMNT / UK Sustainable Investment Forum
- The Diversity Project – Catalyst After School Programme
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