Our approach to implementation of ESG/impact investing mandates varies by asset class due to considerations around the nature of the outcomes we’re seeking as well as the portfolio construction, fees, risk management and liquidity considerations. Here are a few examples:
US Equities: We work with leading providers of separately managed account (“SMA”) portfolios which are customized to incorporate client preferences in areas such as environmental sustainability, women’s rights, board independence, and diversity, equity, and inclusion. Using both negative screens and positive tilts, Tiedemann will work with clients to customize a public equity portfolio in this manner. In addition, because these assets are held in a SMA, and not in a commingled fund, we have the ability to work with clients to co-file shareholder resolutions. We believe shareholder advocacy is a powerful tool, and through Tiedemann and our shareholder advocacy partner, As You Sow, clients can have their voice heard at by the companies in which they invest.
Global Equity: Tiedemann works with a series of investment managers which incorporate ESG and impact criteria into their security selection process. While these strategies differ in style and geographies, the common characteristic is that ESG considerations are an integral part of the firm’s investment and risk-management process. Through our extensive initial and ongoing due diligence process, we can gain great confidence these investment managers are appropriately incorporating material ESG considerations. These investment managers are frequently long-term investors, and they often engage with company management teams to ensure ESG issues are taken seriously throughout all levels of their organization.
Private Investments: We have created a robust private asset investing platform which allocates capital across styles (venture capital, growth equity, infrastructure, debt, and real estate) in our thematic areas: environmental sustainability, financial inclusion, education, and equity-lens. We leverage our scale and long-standing relationships to provide access to top-tier investment managers in these areas. On behalf of our clients, we allocate to areas such as renewable energy infrastructure financing, sustainable real assets for GHG sequestration, green affordable housing, financial inclusion (mobile banking, alternative lending) in developing markets, to name a few.