Managing our clients' assets in a manner that is both responsible and consistent with their ethics is a key priority for CCLA. For this reason, responsibility for Responsible Investment is shared accross the company.
CCLA's Board hold overall responsibility for the activities of the company. To enable them to effectively exercise their responsibility to oversee out activity responsible investment is a standing agenda for their meetings. This provides routine updates on our approach to implementing our Responsible Investment Policies. In addition, as required by our Climate Change and Investment Policy and the Taskforce for Climate Related Financial Disclosures (TCFD), the Board receive an annual 'deep dive' into our policies, process and management of climate related risk. CCLA's Chief Executive and Chief Investment Officer have responsibilities for implementing Responsible Investment Policy and serve on the Company's Board.
CCLA's Chief Investment Officer (CIO) holds overall accountability for developing, overseeing and implementing the company's responsible investment policies. He sits on the company's Ethical and Responsible Investment Committee and approves all responsible investment policy prior to its implementation. He also regularly attends engagement meetings with our investee holdings; this is a key part of our 'stewardship escalation' process.
As the manager of one of the three Church of England National Investing Bodies CCLA's Chief Executive is a member of the Church of England's Ethical Investment Advisory Group. This is responsible for developing the Church's ethical investment policy.
Assessing the ESG standards of investee and prospctive investee companies is a core part of the job description for CCLA's analysts and portfolio managers. They are expected to analyse companies against CCLA's ESG Minimum Standards, identify any other prospective ESG risks that could impact upon companies' ability to deliver the risk adjusted returns expected by our clients and participate in ESG specific stewardship activities. Portfolio managers have the additional responsibility of ensuring that portfolios are managed accordingly to their aggregate ESG risk limits (such as a maximum portfolio carbon footprint).
CCLA's CIO, Portfolio Managers and Analysts are assisted in their roles by the company's Ethical and Responsible Investment Team (E&RI Team). The E&RI Team hold responsibility for, but not limited to:
- identifying, developing and ensuring the effective implementation of our clients' ethical investment policies
- assisting the Chief Investment Officer with the development of responsible investment policy
- assisting analysts and portfolio managers with the implementation of CCLA's responsible investment policy through the provision of specialist data sources and, when required, ESG analysis of specific companies
- ensuring compliance, through effective oversight, of the company's responsible investment policies