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Integral to our investment philosophy
Responsible investment (RI) has long been integral to our investment research and decisions and our approach to business more broadly. The rationale for responsible investment is clear: companies with sustainable business models that look to the future have more potential to deliver value to all stakeholders, including shareholders. As a founding signatory of the United Nations’ Principles for Responsible Investment (PRI), responsible investment has been an established pillar of our business for well over a decade.
- At the heart of our RI approach is a strong research capability embedded within our investment process
- Our research is supported by proprietary RI ratings that enable us to assess material Environmental, Social and Governance (ESG) risks and opportunities for over 8,000 companies worldwide
- As active managers, engagement is key and we have a strong record in influencing positive change through stewardship and voting
- We have a solid culture of collaboration that underpins our research and investment approach
- We offer a range of dedicated RI strategies, including our innovative Social Bond franchise, for clients seeking to more actively promote ESG factors or achieve specific sustainable outcomes
We strive to be responsible stewards of our clients’ assets, allocating their capital within our framework of robust research and good governance. The integration of ESG considerations within our research builds a fuller picture of the risks and future return prospects of all investment opportunities.
Our dedicated RI analysts are integral to our global research team and share the same reporting line. Our research culture is embedded in our equity, fixed income, real estate, macro, and data science teams who continuously collaborate and share insights throughout the firm.This collaboration makes our investment decisions and stewardship activities more informed and makes it easier to identify material opportunities and risks that protect the clients’ interests and the capital they entrust to us.
In addition to the quantitative rating, our RI analysts also conduct a qualitative analysis of companies, sectors and themes concerning ESG and other sustainability considerations. We focus on a subset of eight of the 17 UN Sustainable Development Goals (UNSDGs) that we deem the most material to investments. Our thematic research explores investor topics such as energy transition, human capital development, and carbon policy. This thematic research is always investment-focused and highlights risks and opportunities for sectors and companies from an RI perspective.
Aggregate sustainability risk exposure
The overall sustainability risk faced by a company or portfolio, taking account of a range of issues such as climate risk and ESG factors.
Best-in-class strategies try to make their portfolios better on ESG issues and/or carbon characteristics by excluding certain investments deemed negative in that respect or including certain investments deemed positive in that respect.