The implementation of ESG is monitored in a number of ways:
We have developed an integration programme whereby the ESG team work closely with each of the investment team heads to establish outcomes and goals for development. The programme is based around six important topics which are thought to be significantly beneficial to improving awareness and understanding of ESG issues. The six focus areas are:
- Leadership and team awareness
- Training and education
- Effective use of research and data
- Research efforts
- Participation in external initiatives
- Active ownership responsibilities
Best practice framework
The ESG team have developed a best practice framework for ESG integration. An assessment in line with this framework allows us to understand how the investment teams are currently positioned, the quality and consistency of integration, and any gaps that need to be addressed. The aim of this approach is to understand the stages of the investment process that need to improve, allowing teams to focus on areas that will add the most value.
Alongside the ESG team, the co-Chief Investment Officers also keep a close check on progress on integration.The Investment Governance Committee (IGC) meets quarterly to review activities related to stewardship.