We will incorporate ESG issues into investment analysis and decision-making processes.
We have substantial dedicated resources incorporating ESG into our investment analysis and decision making processes. This includes the Mission Related Investing Group addressing client ESG/RI investment needs and researching RI/ESG investments (approximately 1,000 ESG/RI strategies tracked). We have also systematically incorporated ESG considerations across our investment research platform for all asset classes, with further enhancements to this a major project of our investment research team in 2018 and 2019. We use a variety of ESG tools for investment analysis, for example, considering climate change we use detailed carbon and climate analytics covering emissions, scenario analysis, value at risk etc. to analyse portfolios.
We will be active owners and incorporate ESG issues into our ownership policies and practices.
Consideration of ESG issues is fully integrated in our investment research and monitoring platform. We frequently work with asset owner clients to drive better stewardship of assets and active ownership policies in the managers our clients use. We actively research and recommend investment managers who are market leading innovators in the field of active ownership and ESG. Where we have seen gaps in the market here, we frequently facilitative the creation of new ESG strategies by managers in order to best serve our client’s ESG/RI needs.
We will seek appropriate disclosure on ESG issues by the entities in which we invest (on behalf of our clients).
Our research and monitoring platform collects data on ESG issues for investment managers across asset classes and we will continue to seek more disclose on these issues going forward on behalf of our clients. We also frequently engage with managers on behalf of our clients to drive better disclose on a range of ESG issues such as voting and engagement policies and activity, ESG integration, climate risk, diversity and social and environmental impact reporting.
Our pioneering work creating the world’s first comprehensive impact investment benchmarks, to provide greater transparency on this growing field, is just one example.
We will promote acceptance and implementation of the principles within the investment industry.
Given our privileged status working with many of the leading asset owners in the field of responsible investment, we have often facilitated the creation of, and helped clients to seed, specific new products from investment managers aligned with the principles. Recent examples include an innovative fossil fuel free, low emission emerging markets equity fund, smart beta tilts to global indices incorporating new ESG data, thematic clean energy ESG funds, and socially responsible share classes in multiple hedge funds.
We have also engaged with investment managers to promote implementation of ESG. For example, we had constructive discussions on improving voting practices on climate change related resolutions during this reporting period. We also used our own ESG data collection efforts to prompt more ESG integration and better reporting from a large number of managers with whom we have strong relationships ibn 2019.
As above, we publish numerous reports promoting the principles of responsible investment, host and participate in numerous industry events, and support our signatory clients wherever possible in their own responsible investment goals.
We will work together to enhance our effectiveness in implementing the principles.
Including the UN PRI, we are members of 9 collaborative responsible investment networks. Through these strategic partnerships, Cambridge Associates works with leading signatories and practitioners to improve the industry’s effectiveness in responsible investment. In addition to being a UN PRI signatory, we are members/signatories of:
- Global Impact Investing Network (GIIN)
- Mission Investors Exchange
- US SIF
- UK SIF
- Asia Venture Philanthropy Network
- Confluence Philanthropy
- Intentional Endowments Network
- Interfaith Center on Corporate Responsibility (ICCR)
- Task Force on Climate-related Financial Disclosures TCFD
We will each report on our activities and progress towards implementing the principles.
While the UN PRI service provider framework is an important step here, we are also proactive on reporting on our activities and initiatives through industry events, our own client events, and our research publications.