As Fiduciaries, we look to the future and the future of our clients and their beneficiaries. We think about their goals, both short term and long term. Future generations depend on the decisions we make today, both from a financial standpoint, and looking at the world and the legacy we leave behind. We believe in knowing what we own, and mindfully designing the impact of our portfolios by looking ‘under the hood’ of our investments, at the way the companies we own are run, and directing our investments in an attempt to meet our financial goals while also creating change in the world.
The Principles for Responsible Investment Mission calls on signatories to play a role in creating a sustainable global financial system which will “reward long-term, responsible investment and benefit the environment and society as a whole.” The preamble to the six Principles recognises that applying the Principles in investment decisions not only supports long-term value creation but may also better align investors with the broader objectives of society – in other words, the SDGs.
To support this mission, we start our investment process with The Sustainable Development Goals, which we believe represent the Crises facing the world over the next 30 years. As investors, we see Crisis and Opportunity as two sides of the same coin, so we use the SDGs to guide our investment process when we’re deciding which companies or investment managers to include in our portfolios.
Many investors believe that investments in companies will only be profitable over the long term if the global financial system and societies grow in a sustainable and equitable way. And while responsible investment has typically focused on how ESG factors affect the risk-return profile of investment portfolios, it has tended to overlook how it supports the broader objectives of society.
As such, we subscribe to the SDG agenda which requires signatories to move from a mere process-based approach of material ESG integration towards an outcomes-based approach that, while aiming to achieve market-rate return on investment, explicitly aims to contribute to the sustainability challenges put forward by the SDGs.