Our commitment to responsible investment is supported by a set of basic principles covering 5 areas which are part of the 10 action levers listed above:
1. Responsible products and solutions: We will continue to develop investment strategies that provide capital to companies contributing to positive impacts on society or the environment, as well as to those that have a plan to successfully mitigate the negative externalities of their products, services, operations & supply chain.
2. ESG integration into investment processes and risk management: Across research, investment decisions, risk management, and advisory, we will continue to strengthen the integration of material and emerging environmental, social and governance factors in the evaluation of corporate and sovereign issuers.
3. Active ownership: We will strive to engage with issuers that fall short of our expectations – either directly or through collaborations with other investors. Where necessary we will escalate to Board representatives, vote against management or support shareholder resolutions. Depending on the severity of the concern, and the issuers capacity or willingness to adopt generally accepted standards of best practice, we may choose to exit the position.
4. Client engagement: Where relevant data is available, we will strengthen reporting on the ESG characteristics of client portfolios and the impact of active ownership activities. Where data is missing, we will encourage issuers to report against international standards.
5. Thought-leadership and research on sustainability: We will leverage our rich experience across key environmental and social themes to publish targeted research and help raise awareness and capital for a sustainable transition.