Insight and responsible investment
Investing responsibly is an essential part of managing risk.
It is not about putting specific ethical considerations ahead of other criteria when creating portfolios.
For all our client portfolios we systematically consider ESG issues within our research process: this has helped us identify significant risks, as the evidence in our annual report demonstrates.
It’s also more than exclusion. When we identify material ESG risks in a company, we will engage with management in order to better understand the issues and exert influence on behalf of our clients to encourage improvements to its practices.
We also develop our tools where publicly available data is lacking. Our climate change and sovereign sustainability indices, and our ESG questionnaires, are examples of such tools to help our analysts better understand the most relevant risks.
Some issues are too big to tackle alone. We have collaborated with other stakeholders on topics such as climate change and cyber security.
Ultimately, I believe investing responsibly means considering the long-term impact on our clients, rather than simply focusing on the short term for our business.
1Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients.