ESG investing is not just about ethics, but risk management too November 2017

Size: px
Start display at page:

Download "ESG investing is not just about ethics, but risk management too November 2017"

Transcription

1 PERSPECTIVES ESG investing is not just about ethics, but risk management too November 2017 Socially responsible investing (SRI) aims to generate returns for investors while taking the sustainability and ethical impact of the investment activity into consideration. SRI is increasingly becoming a core focus for long-term investors, with growing emphasis on managing environmental, social and corporate governance (ESG) risks. Clearly, ESG is an important consideration, in particular for asset owners such as pension schemes or insurance companies whose long-term investment horizon exposes them to the risk that an inherent ESG factor, such as climate risk, could materialise and impact their returns. At Unigestion, managing risk lies at the heart of our investment philosophy and is the common thread running through all our investment strategies. With this in mind, we believe that integrating ESG criteria into our decision making process is essential to better understand the risks of our investments and therefore has a positive impact on the risk-adjusted performance of our portfolios. This paper seeks to outline the ways ESG issues are incorporated into our equities investment process, including ESG risk management through specific event filtering and bottom up qualitative analysis; active ownership initiatives including engagement and proxy voting, as well as ESG risk monitoring and reporting. We also have the ability to include a significant level of ESG filters, based on clients specific ethical criteria. This paper seeks to illustrate that the inclusion of such client defined ethical screens does not have to impede a portfolio s ability to deliver an attractive risk/return profile, consistent with that of a traditionally managed strategy. History of ESG risk management at Unigestion Unigestion has been running risk managed equity portfolios since 1997 and risk managed SRI strategies since Managing risk lies at the heart of our investment philosophy and is part of the DNA of all of our equity strategies. We actually view risk management as a means to achieve outperformance and believe that the inclusion of environmental, social and corporate governance criteria can form an integral part of this comprehensive and holistic risk management approach. Growth of Unigestion ESG/SRI Assets AUM EUR m 4'000 3'500 3'000 2'500 2'000 1'500 1' Source: Unigestion as at 30 September Q Unigestion s equities team manages a range of ESG/SRI solutions, combining pooled funds and segregated mandates, with a total of EUR3.5bn assets under management and managed in accordance with our clients respective stock exclusion lists or by excluding specific activities/sectors (such as fossil fuels or bonded labour practices) from the investment universe. Maria Musiela Investment Specialist, Equities Summary 1. Unigestion has been running SRI strategies since 2004 and manages over EUR3.5bn of assets across our range of ESG/SRI investment solutions 2. We believe integrating ESG criteria into our 360 risk management process has a positive impact on the riskadjusted performance of our investment portfolios 3. We seek to show that the inclusion of client defined ethical screens does not have to impede a portfolio s ability to deliver an attractive risk/return profile, consistent with that of a traditionally managed strategy Read more of our publications online: Unigestion SA I 1/6

2 Moreover, we recognise that many of our clients have their own ESG and ethical vision, policies and criteria. Therefore, we have ensured that our process has the flexibility to provide bespoke solutions that combine our clients SRI/ethical convictions with Unigestion s investment management, philosophy and expertise. Notably, Unigestion was selected as subadvisor of the K Invest Low Carbon Global Equity Fund in 2016, co-developing the low carbon approach with Kirstein A/S, a leading financial consultant in Denmark. The fund aims to achieve above average returns through our 360 risk managed approach, while producing a significantly reduced carbon footprint. The fund targets a 75% reduction of carbon emissions compared to that of the MSCI World Index. We believe this fund proves it is possible to significantly reduce the carbon footprint of a portfolio without foregoing risk-adjusted returns. We have ensured that our investment process has the flexibility to provide bespoke ESG solutions to match our clients own ethical vision Evolution of SRI at Unigestion Our approach ESG factors can represent significant challenges for companies and can pose a considerable threat to the long-term stability of an investment and its ability to perform according to our expectations, but these risk are not always recognised by the wider market. Our active risk-based approach aims to identify those companies where risk factors, including ESG risks, are not priced into the current valuation so that they can be excluded from our equity portfolios. ESG issues are managed at a number of levels within our investment process: a) Specific risk filtering: During the initial stage of our process we systematically filter the investible universe in order to remove stocks with specific exposures from our risk managed equity portfolios, these include: ESG risks: this filter eliminates stocks with specific ESG exposures, such as environmental or corporate governance issues, treatment of workforce, legal problems, merger and acquisitions or fraud. These are all issues which we believe will affect a stock s future risk profile. Controversial weapons exposure: we exclude stocks with direct exposure to controversial weaponry, including cluster bombs, landmines, depleted uranium, as well as chemical and biological weapons. Our active risk-based approach aims to identify those companies where risk factors, including ESG risks, are not priced into the current valuation so that they can be excluded from our equity portfolios Read more of our publications online: Unigestion SA I 2/6

3 Excessive carbon intensity: we believe companies emitting high levels of carbon are more exposed to downside valuation risks given potential regulatory changes and greater investor focus; therefore, we filter out stocks with excessive carbon footprints. SRI/ethical filters: we can also incorporate stock, activity or sector exclusions in line with our clients specific SRI criteria. b) Qualitative validation of the portfolio: Our systematic filters are supplemented by internal qualitative research by our team of fundamental analysts; we also use ESG research provided by Vigeo Eiris and climate risk specific data provided by Trucost. This second layer allows us to perform thorough bottom up assessments of companies before they enter our portfolios and to validate our equity positions on an ongoing basis. c) Active ownership initiatives: As a significant owner of equities, Unigestion s practice is to actively engage with our held companies on a variety of topics including those that are director related, routine business, relating to reorganisation and mergers, concerning health and environment, as well as corporate governance issues. We believe it is our responsibility to voice our opinion/concerns when relevant and request that these be addressed. Our engagement activities are also fully aligned with our voting priorities, as they are both driven by Institutional Shareholder Services (ISS) guidelines on International Sustainability Proxy Voting. Where possible, Unigestion casts votes on all shares under its control in the context of the Uni-Global SICAV pooled funds and for some segregated mandates when requested by the client. Our proxy voting is carried out by ISS, based on their International Sustainable Proxy Voting guidance which recognises that sustainability, or ESG factors, can present material risks to portfolio investments. ISS' Sustainability policy seeks to promote support for recognised global governing bodies promoting sustainable business practices, advocating for environmental stewardship, fair labour practices, non-discriminatory policies and the protection of human rights. As a signatory of the UN supported Principles for Responsible Investment (PRI), we also participate in engagements coordinated through their Collaboration Platform and selectively participate in collaborative engagements with other like-minded asset managers and asset owners on specific issues. We believe it is our responsibility to be actively engaged in the companies we hold. We engage directly and collaboratively on a variety of topics. Our proxy voting is carried out by ISS, based on their International Sustainable Proxy Voting guidance d) Monitoring of carbon footprints: Portfolio analysis and the reporting of ESG factors, and in particular climate risk monitoring, form the final part of our process. We regularly review and monitor our portfolios carbon footprints to help us better evaluate their exposure to climate risk. In addition, we have signed the Montreal Carbon Pledge, committing to measuring and Read more of our publications online: Unigestion SA I 3/6

4 publicly reporting the carbon footprint of our equity funds on an annual basis. Carbon footprint reports also form part of our regular reports to clients. We are pleased to provide this high level of transparency to help clients and investors better understand, quantify and manage climate change-related impacts, risks and opportunities. Impact of incorporating ethical considerations: a case study The monitoring of ESG risks form an integral part of our 360 risk management process as they can have a significant impact on the risk return profile of investments. However, there is less evidence to suggest this is the case with ethical considerations, which tend to be driven by the specific values of an individual investor. For example, religious organisations may choose to exclude certain pharmaceuticals or alcoholic beverage producers based on their beliefs, but such activities may not be a concern to other groups of SRI minded investors. Investors wishing to incorporate ethical screens may be concerned that such filtering could hamper the risk/return profile of their investments, by limiting the investible universe, potentially compromising the opportunity set and ability to effectively diversify their portfolio. However, this doesn t have to be the case. We believe our investment process is robust enough to incorporate a number of exclusions, based on clients specified ethical criteria, without impacting the ability to deliver returns that are consistent with our traditionally managed strategies. As an example, we can compare one of our SRI screened European equity mandates with our traditionally managed European equity strategy, the Uni-Global Equities Europe fund, which is not screened for ethical considerations but does incorporate our other ESG filters. The table below illustrates the exclusion criteria for the portfolios under analysis: Exclusion criteria for Unigestion portfolios Uni-Global - Equities Europe # Stocks Uni-Global - Equities Europe % Index Weight Ethically Screened Portfolio # Stocks Ethically Screened Portfolio % Index Weight Stocks excluded based on client exclusion criteria 0 0.0% % Stocks excluded due to Carbon Intensity 9 1.1% 9 1.1% Stocks excluded due to controversial weapons exposure 1 0.1% 1 0.1% Other ESG based stock exclusions 3 0.1% 3 0.1% Given its high level of ethical criteria, the SRI mandate excludes 28.4% of the investible universe (the MSCI Europe Index), which represents 71 stocks versus 0 stocks for our traditional strategy. However, it is worth noting that both of these portfolios include our broader ESG filters, which in this instance has resulted in the exclusion of 1 company based on its controversial weapons restrictions, 9 companies due to their excessive carbon intensity and a further 3 stocks for other ESG criteria. We believe our 360 risk management investment process is robust enough to incorporate a number of ethically-based stock exclusions without impacting the ability to deliver returns that are consistent with our traditionally managed strategies Risk/return profiles Uni-Global - Equities Europe SA-EUR Ethically Screened Portfolio MSCI Europe TR Net Return YTD performance 11.82% 10.08% 9.56% 3 years p.a 10.89% 10.79% 6.89% 5 year p.a % 11.78% 10.21% Risk Statistics (Weekly basis) Volatility 5 years 12.15% 12.27% 14.54% Source: Unigestion and Bloomberg. All figures shown gross of fees; to 29 September Past performance is not a guide to future performance. Read more of our publications online: Unigestion SA I 4/6

5 The above table considers the impact these exclusions had on performance. Our portfolios outperformed the benchmark across all time periods, at a lower level of volatility, illustrating the positive impact of our 360 risk management investment process. In addition, we note that there has been no negative impact on the risk/return characteristics of the Ethically Screened Portfolio, even though the investible universe was reduced by 30%. Cumulative Returns Ethically Screened Portfolio Uni-Global - Equities Europe SA-EUR - gross of fees MSCI Europe TR Net Sep/2010 Sep/2011 Sep/2012 Sep/2013 Sep/2014 Sep/2015 Sep/2016 Sep/ year rolling volatility 24% 22% 20% Our analysis showed that there was no negative impact on the risk/return characteristics of an Ethically Screened Portfolio 18% 16% 14% 12% Uni-Global - Equities Europe SA-EUR Ethically Screened Portfolio MSCI Europe TR Net 10% Sep/2013 Mar/2014 Sep/2014 Mar/2015 Sep/2015 Mar/2016 Sep/2016 Mar/2017 Sep/2017 Source: Unigestion and Bloomberg. All figures shown gross of fees; to 29 September Past performance is not a guide to future performance. Conclusion As a signatory of the Montreal Pledge and the UN supported PRI, Unigestion has committed to continuously scrutinise the way ESG issues are respected, measured, reported on and handled throughout our investment activities and to making ongoing improvements. ESG risk awareness is an important component of our 360 risk management process across all of our strategies. For clients with more specific requirements, we offer SRI-based strategies, with ethical filters to address client concerns. In this paper, we have illustrated that the inclusion of client defined ethical screens does not have to impede a portfolio s ability to deliver an attractive risk return profile and that the return pattern of an SRI solution can be consistent with that of a traditionally managed strategy. Unigestion Equites Team, November 2017 For further information, contact: clients@unigestion.com ESG risk awareness is an important component of our 360 risk management process across all of our strategies. Read more of our publications online: Unigestion SA I 5/6

6 Important Information This document is addressed to professional investors, as described in the MiFID directive and has therefore not been adapted to retail clients. It is a promotional statement of our investment philosophy and services. It constitutes neither investment advice nor an offer or solicitation to subscribe in the strategies or in the investment vehicles it refers to. Some of the investment strategies described or alluded to herein may be construed as high risk and not readily realisable investments, which may experience substantial and sudden losses including total loss of investment. These are not suitable for all types of investors. The views expressed in this document do not purport to be a complete description of the securities, markets and developments referred to in it. To the extent that this report contains statements about the future, such statements are forward-looking and subject to a number of risks and uncertainties, including, but not limited to, the impact of competitive products, market acceptance risks and other risks. Data and graphical information herein are for information only. No separate verification has been made as to the accuracy or completeness of these data which may have been derived from third party sources, such as fund managers, administrators, custodians and other third party sources. As a result, no representation or warranty, express or implied, is or will be made by Unigestion as regards the information contained herein and no responsibility or liability is or will be accepted. All information provided here is subject to change without notice. It should only be considered current as of the date of publication without regard to the date on which you may access the information. Past performance is not a guide to future performance. You should remember that the value of investments and the income from them may fall as well as rise and are not guaranteed. Rates of exchange may cause the value of investments to go up or down. An investment with Unigestion, like all investments, contains risks, including total loss for the investor. Document issued on: 27 November 2017 Ref: Read more of our publications online: Unigestion SA I 6/6

Responsible Investment

Responsible Investment June 2015 Schroders Responsible Investment Global and International Equities At Schroders, Responsible principles drive our investment decisions and the way we manage funds. From choosing the right assets

More information

Japanese equities: taking stock post-election November 2017

Japanese equities: taking stock post-election November 2017 PERSPECTIVES FOR PROFESSIONAL INVESTORS ONLY Japanese equities: taking stock post-election November 217 The result of the 48th general election of Japan s House of Representatives was unsurprising, especially

More information

Sparinvest Responsible Investment Policy. Investing for value creation and sustainability

Sparinvest Responsible Investment Policy. Investing for value creation and sustainability Sparinvest Responsible Investment Policy Investing for value creation and sustainability This policy document aims to give an overview of our approach to responsible investment. Further details may be

More information

Responsible Investment Policy

Responsible Investment Policy Avon Pension Fund Responsible Investment Policy November 2016 Avon Pension Fund Responsible Investment Policy Introduction and Purpose The Avon Pension Fund ( Fund ) is a long-term investor. Our aim is

More information

Environmental, Social and Governance (ESG)

Environmental, Social and Governance (ESG) Environmental, Social and Governance (ESG) Sustainable and Responsible Investment Policy for ODIN FORVALTNING Versjon 1.4 2017 Innhold 1. Introduction...3 2. Objective...3 3. Integrating ESG into our investment

More information

ESSSuper Responsible Investment Policy

ESSSuper Responsible Investment Policy ESSSuper Responsible Investment Policy June 2017 Responsible Investment Policy 1. ESSSuper mission To help our members who make, or have made, an essential contribution to the community, achieve their

More information

Ireland Strategic Investment Fund. Sustainability and Responsible Investment Strategy

Ireland Strategic Investment Fund. Sustainability and Responsible Investment Strategy Ireland Strategic Investment Fund Sustainability and Responsible Investment Strategy December 2017 Ireland Strategic Investment Fund (ISIF) Sustainability and Responsible Investment Strategy This strategy

More information

Future World Fund Q&A

Future World Fund Q&A For Professional Investors and their Financial Advisers Only. Not to be distributed to or intended for use by Retail Clients. Index Fund launch Future World Fund Q&A Investing for the world you want to

More information

ADVANCE SUSTAINABLE INVESTMENT APPROACH

ADVANCE SUSTAINABLE INVESTMENT APPROACH ADVANCE SUSTAINABLE INVESTMENT APPROACH July 2018 CONTENTS What is sustainable investing?... 1 What are ESG factors?... 2 Our beliefs... 2 Our approach to sustainable investment... 2 1. Investment process...3

More information

Responsible Investment: Policies and Principles

Responsible Investment: Policies and Principles Responsible Investment: Policies and Principles At Franklin Templeton Investments (FTI), responsible investment (RI) refers to the integration of environmental, social and governance (ESG) factors into

More information

The adoption of ESG criteria among hedge fund and private assets managers: a survey by Unigestion April 2015

The adoption of ESG criteria among hedge fund and private assets managers: a survey by Unigestion April 2015 PERSPECTIVES The adoption of ESG criteria among hedge fund and private assets managers: a survey by Unigestion April 2015 It is increasingly recognised that taking into account environmental, social and

More information

Responsible Investment Position Statement.

Responsible Investment Position Statement. Responsible Investment Position Statement. October 2017 BT Financial Group ( BTFG ) provides wealth management services to Australians across superannuation, insurance, investments and advice. Our mission

More information

Lancashire County Pension Fund (LCPF) Responsible Investment Policy

Lancashire County Pension Fund (LCPF) Responsible Investment Policy 1. Introduction Lancashire County Pension Fund (LCPF) Responsible Investment Policy This policy defines the commitment of Lancashire County Pension Fund (the Fund) to responsible investment (RI). Its purpose

More information

ESG Policy & Process. 1. Overview and Philosophy

ESG Policy & Process. 1. Overview and Philosophy Wells Capital Management ESG Policy & Process Updated March 2018 1. Overview and Philosophy Through our independent and specialized investment teams, Wells Fargo Asset Management ( WFAM ) 1 brings together

More information

MYLIFEMYMONEY Superannuation Fund

MYLIFEMYMONEY Superannuation Fund CSF Pty Limited (ABN 30 006 169 286) (AFSL 246664) MYLIFEMYMONEY Superannuation Fund Responsible Investment Policy September 2017 Responsible Investment Policy Contents Page Contents 1. Fund Objectives...

More information

Responsible Investment Solutions

Responsible Investment Solutions Responsible Investment Solutions For professional investors only Responsible Investment Solutions Investing responsibly At BMO Global Asset Management, we recognise the important role that environmental,

More information

Responsible Investment Policy Framework

Responsible Investment Policy Framework Responsible Investment Policy Framework April 2016 CC&A/Corporate Citizenship Contents 1. Introduction 3 1.1 Objectives 3 1.2 Mandate 3 1.3 Scope 3 1.4 Foundation 4 1.5 Structure 4 2. Responsible Investment:

More information

Invesco 2016 Investment Stewardship and Proxy Voting Annual Report Our commitment to responsible investing

Invesco 2016 Investment Stewardship and Proxy Voting Annual Report Our commitment to responsible investing Invesco 06 Investment Stewardship and Proxy Voting Annual Report Our commitment to responsible investing Invesco s commitment to sound investment stewardship Dear Investor, Invesco is committed to delivering

More information

Climate change policy. Fulfilling our fiduciary duties on climate

Climate change policy. Fulfilling our fiduciary duties on climate Climate change policy Fulfilling our fiduciary duties on climate As a global investor, we are aware of the risks climate change presents to our investments and as such we are committed to playing our full

More information

ESG AND RESPONSIBLE INVESTMENT PHILOSOPHY

ESG AND RESPONSIBLE INVESTMENT PHILOSOPHY ESG AND RESPONSIBLE INVESTMENT PHILOSOPHY February 2017 AMP CAPITAL ESG AND RESPONSIBLE INVESTMENT PHILOSOPHY 1 AMP Capital is one of Asia Pacific s largest investment managers. We have a single goal in

More information

Global Sustainability Leaders Index ETF (ETHI) Horizons

Global Sustainability Leaders Index ETF (ETHI) Horizons Horizons Global Sustainability Leaders Index ETF (ETHI) In one trade, gain exposure to the top100 global climate change leaders committed to socially responsible investing. Innovation is our capital. Make

More information

Sustainability report 2017 SWEDBANK FÖRSÄKRING AB

Sustainability report 2017 SWEDBANK FÖRSÄKRING AB Sustainability report 2017 SWEDBANK FÖRSÄKRING AB Table of Content 1. Responsible investment... 3 Sustainable management... 3 Policy... 3 Transparency... 3 Increased awareness... 3 Climate impact... 3

More information

Stewardship Code Compliance Statement

Stewardship Code Compliance Statement Stewardship Code Compliance Statement Principle 1 Institutional investors should publicly disclose their policy on how they will discharge their stewardship responsibilities. The Henderson investment approach

More information

The asset manager for a changing world

The asset manager for a changing world INVESTING FOR A SUSTAINABLE WORLD For professional and institutional investors only 2017 The asset manager for a changing world INVESTING for a sustainable world I 2017 I 2 OUR INVESTMENT PHILOSOPHY The

More information

Principle 1 Institutional investors should publicly disclose their policy on how they will discharge their stewardship responsibilities

Principle 1 Institutional investors should publicly disclose their policy on how they will discharge their stewardship responsibilities LOCAL PENSIONS PARTNERSHIP Statement of Compliance with the UK Stewardship Code Introduction Local Pensions Partnership Ltd (LPP) is a pension services provider for public sector pension funds. Our aim

More information

Aegon N.V. Responsible Investment Policy 2017

Aegon N.V. Responsible Investment Policy 2017 Aegon N.V. Responsible Investment Policy 2017 The Hague, October 2017 1 Introduction Aegon N.V. (hereafter referred to as Aegon ), as a global insurance company, asset manager and investor, has a large

More information

Overview 02. SIM broadens its investment responsibilities 03. Categories of resolutions declined. 04

Overview 02. SIM broadens its investment responsibilities 03. Categories of resolutions declined. 04 SIM Responsible Investment Report December 2017 Contents Overview 02 SIM broadens its investment responsibilities 03 Categories of resolutions declined. 04 Categories of remuneration-related resolutions

More information

Responsible investment policy

Responsible investment policy Responsible investment policy February 2018 For people, not profit Responsible investment Trustee policy statement Policy statement Responsible investment is first and foremost about being responsible

More information

Stewardship: Fixed income

Stewardship: Fixed income Stewardship: Fixed income Building value for the longer term Integrating environmental, social and governance (ESG) factors into our fixed income investment process Aberdeen investment philosophy Aberdeen

More information

Responsible Investment Policy 2018

Responsible Investment Policy 2018 Responsible Investment Policy 2018 Antin Infrastructure Partners Responsible Investment Policy 2018 Founding principles and objectives Antin is a long-term investor committed to responsible investment

More information

LONDON BOROUGH OF HARINGEY PENSION FUND INVESTMENT STRATEGY STATEMENT. 1. Introduction

LONDON BOROUGH OF HARINGEY PENSION FUND INVESTMENT STRATEGY STATEMENT. 1. Introduction LONDON BOROUGH OF HARINGEY PENSION FUND INVESTMENT STRATEGY STATEMENT 1. Introduction Haringey Council is the Administering Authority for the Local Government Pension Scheme in the London Borough of Haringey

More information

pggm.nl PGGM Beliefs and Foundations for Responsible Investment

pggm.nl PGGM Beliefs and Foundations for Responsible Investment pggm.nl PGGM Beliefs and Foundations for Responsible Investment May 2014 PGGM Beliefs and Foundations for Responsible Investment Introduction This document describes the beliefs and foundations for responsible

More information

Fonds de Compensation FDC SICAV Obligations EUR Actif 3

Fonds de Compensation FDC SICAV Obligations EUR Actif 3 Fonds de Compensation FDC SICAV Obligations EUR Actif 3 Sustainable Approach March 2018 Amundi Sustainable Approach Sustainable and Responsible Investing has been a long standing and essential part of

More information

Investment Insight Engage or divest? The carbon debate

Investment Insight Engage or divest? The carbon debate November 2015 Kirsten Temple Senior Consultant JANA Kirsten is the Head of JANA s Environmental Social and Governance (ESG) & Socially Responsible Investment (SRI) team. In this role, she is responsible

More information

Church Investors Group Working With Your Fund Managers

Church Investors Group Working With Your Fund Managers Church Investors Group Working With Your Fund Managers www.churchinvestorsgroup.org.uk Church Investors Group Possible Discussion Points for CIG Members on Ethical and Responsible Investment CIG members

More information

RESPONSIBLE INVESTMENT POLICY. Columbia Management Investment Advisers, LLC

RESPONSIBLE INVESTMENT POLICY. Columbia Management Investment Advisers, LLC POLICY Columbia Management Investment Advisers, LLC APPROACH TO RESPONSIBLE INVESTMENT COLUMBIA THREADNEEDLE INVESTMENTS This brochure provides a broad outline of the approach to responsible investment

More information

FOR PROFESSIONAL CLIENTS ONLY. Environmental, social and governance (ESG) investment policies

FOR PROFESSIONAL CLIENTS ONLY. Environmental, social and governance (ESG) investment policies FOR PROFESSIONAL CLIENTS ONLY Environmental, social and governance (ESG) investment policies 2016 1. Does your organisation have a policy regarding the integration of environmental, social and corporate

More information

Environmental, Social and Governance Policy. August 2016

Environmental, Social and Governance Policy. August 2016 Environmental, Social and Governance Policy August 2016 Environmental, Social and Governance Policy Table of contents 1. Environmental, Social and Governance ( ESG ) Investment 3 2. ESG Integration into

More information

Principal Global Fixed Income s ESG principles

Principal Global Fixed Income s ESG principles Principal Global Fixed Income s ESG principles Guided by our responsibility to our clients Our clients long-term best interests define the responsibility of Principal Global Fixed Income. And that responsibility

More information

Responsible Investing Making sense of investing

Responsible Investing Making sense of investing Responsible Investing Making sense of investing Working with you since 1831 Making sense of investing Socially Responsible Investing (SRI) allows investors to take a more proactive role in the economy

More information

West Midlands Pension Fund. Investment Strategy Statement 2017

West Midlands Pension Fund. Investment Strategy Statement 2017 West Midlands Pension Fund Investment Strategy Statement 2017 March 2017 Investment Strategy Statement 2017 1) Introduction This is the Investment Strategy Statement (the ISS ) of the West Midlands Pension

More information

eastsussex.gov.uk Responsible Investment Policy

eastsussex.gov.uk Responsible Investment Policy eastsussex.gov.uk Responsible Investment Policy November 2018 Responsible Investment Policy Introduction and background Regulation 7(2) (e) The Local Government Pension Scheme (Management and Investment

More information

Annual report on the integration of environmental, social and corporate governance (ESG) issues

Annual report on the integration of environmental, social and corporate governance (ESG) issues . Annual report on the integration of environmental, social and corporate governance (ESG) issues 2017 As a portfolio manager, Hexavest has the duty to act in the best long-term interest of its clients

More information

Policy for responsible investment

Policy for responsible investment v Policy for responsible investment Adopted by the Board of Xact Kapitalförvaltning AB (hereinafter referred to as the fund management company or Xact Kapitalförvaltning) 31 May 2017. Value base It is

More information

Transparency Code for SRI funds open to the public

Transparency Code for SRI funds open to the public This document has been completed by AXA Investment Managers Paris in accordance with the Transparency Code. The French Asset Management Association and the Forum for Responsible Investment assume no responsibility

More information

STEWARDSHIP STATEMENT

STEWARDSHIP STATEMENT STEWARDSHIP STATEMENT February 2017 The UK Stewardship Code The aim of stewardship is to enhance the quality of engagement between institutional investors and companies in order to promote the long-term

More information

NGS SUPER RESPONSIBLE INVESTMENT POLICY

NGS SUPER RESPONSIBLE INVESTMENT POLICY Your fund. Your wealth. Your future. NGS SUPER RESPONSIBLE INVESTMENT POLICY Managing long term risks in order to maximise prospective long term returns EXTRACT FROM RESPONSIBLE INVESTMENT POLICY DOCUMENT

More information

NEWTON SUSTAINABLE INVESTMENT STRATEGIES

NEWTON SUSTAINABLE INVESTMENT STRATEGIES January 2019 NEWTON SUSTAINABLE INVESTMENT STRATEGIES Please read the important disclosure on the last page. Newton sustainable investment strategies Responsible investing is something we have been doing

More information

Responsible Investing at Parametric

Responsible Investing at Parametric April 2017 Jennifer Sireklove, CFA Director, Investment Strategy at Parametric Principles-based investing has a long history in the United States, and recently there has been a surge of interest in incorporating

More information

Stewardship at AAM. November Katy Grant, Senior Analyst - Responsible Investing Stewardship. Aberdeen Standard Investment

Stewardship at AAM. November Katy Grant, Senior Analyst - Responsible Investing Stewardship. Aberdeen Standard Investment Stewardship at AAM November 2017 Katy Grant, Senior Analyst - Responsible Investing Stewardship Aberdeen Standard Investment For professional investors only Not for public distribution 2 What is Stewardship

More information

Sustainability policy for SEB's Management Companies. Sustainability policy for SEB Investment Management AB

Sustainability policy for SEB's Management Companies. Sustainability policy for SEB Investment Management AB Sustainability policy for SEB Investment Management AB December 2017 Adopted by the board of directors of SEB Investment Management AB ("the Management Company") on 23 February 2010. Most recent revision:

More information

Aligning Social Objectives with Financial Goals

Aligning Social Objectives with Financial Goals Aligning Social Objectives with Financial Goals An Introduction to ESG Investing By Baird s Asset Manager Research ESG INCORPORATION STRATEGIES AND TERMS Socially Responsible Investing: A portfolio construction

More information

London Borough of Hackney Pension Fund. Investment Strategy Statement

London Borough of Hackney Pension Fund. Investment Strategy Statement London Borough of Hackney Pension Fund Investment Strategy Statement Investment Strategy Statement (Published 01/04/2017) 1. Introduction The London Borough of Hackney is the Administering Authority for

More information

CCLA s Statement in Response to the UK Stewardship Code

CCLA s Statement in Response to the UK Stewardship Code CCLA s Statement in Response to the UK Stewardship Code The Stewardship Code aims to enhance the quality of engagement between institutional investors and companies to help improve long-term returns to

More information

RESPONSIBLE INVESTMENT QUESTIONS FOR FUND MANAGERS A Guide for Foundations

RESPONSIBLE INVESTMENT QUESTIONS FOR FUND MANAGERS A Guide for Foundations RESPONSIBLE INVESTMENT QUESTIONS FOR FUND MANAGERS A Guide for Foundations Purpose of Guide The purpose of this Guide is to: 1) Orient foundations to preliminary questions they can raise with their current

More information

Lyxor Asset Management

Lyxor Asset Management 2017 Lyxor Asset Management REPORTING ON INTEGRATION OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) CRITERIA Article 173 (D 533-16) of the French Law on the Energy Transition for Green Growth CONTENT 1.

More information

Investment Strategy Statement: September 2018

Investment Strategy Statement: September 2018 Investment Strategy Statement: September 2018 Introduction and background This is the Investment Strategy Statement ( ISS ) of the London Borough of Lewisham Pension Fund ( the Fund ), which is administered

More information

LYXOR Asset Management Group

LYXOR Asset Management Group 2018 LYXOR Asset Management Group REPORTING ON INTEGRATION OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) CRITERIA Article 173 (D 533-16) of the French Law on the Energy Transition for Green Growth Content

More information

Transparency Code for SRI funds open to the public

Transparency Code for SRI funds open to the public This document has been completed by AXA Investment Managers Paris in accordance with the Transparency Code. The French Asset Management Association and the Forum for Responsible Investment assume no responsibility

More information

ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISK ANALYSIS SOLUTIONS

ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISK ANALYSIS SOLUTIONS ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISK ANALYSIS SOLUTIONS By the first and only global custodian to become a Signatory of the UN Principles for Responsible Investment TREVOR ALLEN LUGANO, 20/11/2017

More information

Responsible & Sustainable Investment Statement

Responsible & Sustainable Investment Statement Responsible & Sustainable Investment Statement Nanuk Asset Management February 2018 Overview Nanuk is committed to investing sustainably and managing responsibly. Nanuk s commitment is inherent in the

More information

Image: The Caribbean Sea and Curacao RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE

Image: The Caribbean Sea and Curacao RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE Image: The Caribbean Sea and Curacao RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE OUR APPROACH NOT ALL RESPONSIBLE INVESTMENT SOLUTIONS ARE CREATED EQUAL Different organisations define

More information

Statement of investment principles. April 2018 to March 2021

Statement of investment principles. April 2018 to March 2021 Statement of investment principles April 2018 to March 2021 Introduction Introduction The Trustee of the National Employment Savings Trust (NEST) has produced this Statement of Investment Principles (SIP),

More information

Principle 1: Institutional Investors should publicly disclose their policy on how they will discharge their stewardship responsibilities

Principle 1: Institutional Investors should publicly disclose their policy on how they will discharge their stewardship responsibilities Trilogy and Effective Investor Stewardship Principle 1: Institutional Investors should publicly disclose their policy on how they will discharge their stewardship responsibilities As an institutional investor,

More information

MSCI ESG FUND METRICS METHODOLOGY

MSCI ESG FUND METRICS METHODOLOGY MSCI ESG FUND METRICS METHODOLOGY MSCI ESG FUND METRICS METHODOLOGY. Executive Summary May 2017 CONTENTS 1 Executive Summary... 3 1.1 MSCI S Approach To Fund Metrics... 3 1.2 MSCI ESG Fund Metrics Features...

More information

Stewardship Statement

Stewardship Statement Rathbone Unit Trust Management Contact us 020 7399 0399 rutm@rathbones.com Stewardship Statement October 2016 About us Rathbone Unit Trust Management is a leading UK fund manager. We are an active management

More information

Introduction. What is ESG?

Introduction. What is ESG? Contents Introduction 2 Purpose of this Guide 6 Why reporting on ESG is important 10 Best Practice Recommendations 14 Appendix: Sustainability Reporting Initiatives 20 01 Introduction Environmental, social

More information

UK Stewardship Code Statement

UK Stewardship Code Statement UK Stewardship Code Statement January 2018 BARINGS COMMITMENT At Barings, our firm-wide commitment is to deliver competitive risk-adjusted returns for our clients. We consider environmental, social and

More information

For professional investors only. Green Bonds

For professional investors only. Green Bonds For professional investors only Green Bonds March 2017 A heritage of responsible investment Leadership Launched Europe s first social and environmental screened portfolio in 1984. One of the largest Responsible

More information

2018 LGIM Response to UK Stewardship Code Principles. UK Stewardship Code LGIM Response to UK Stewardship Code Principles

2018 LGIM Response to UK Stewardship Code Principles. UK Stewardship Code LGIM Response to UK Stewardship Code Principles UK Stewardship Code LGIM Response to UK Stewardship Code Principles Introduction At LGIM we take our stewardship responsibilities seriously and devote significant resource to ensure our clients assets

More information

Applying Mission Focus to Your Investment Policy Statement through ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) INVESTING

Applying Mission Focus to Your Investment Policy Statement through ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) INVESTING Applying Mission Focus to Your Investment Policy Statement through ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) INVESTING JUNE 2017 APPLYING MISSION FOCUS TO YOUR INVESTMENT POLICY STATEMENT THROUGH ESG

More information

November 2016 LGIM Response to UK Stewardship Code Principles. UK Stewardship Code LGIM Response to UK Stewardship Code Principles

November 2016 LGIM Response to UK Stewardship Code Principles. UK Stewardship Code LGIM Response to UK Stewardship Code Principles UK Stewardship Code LGIM Response to UK Stewardship Code Principles Introduction At LGIM we take our stewardship responsibilities seriously and devote significant resource to ensure our clients assets

More information

Responsible investment policy

Responsible investment policy PROSPERITY CAPITAL MANAGEMENT Responsible investment policy 3/27/2018 OBJECTIVE This Policy sets out how Prosperity Capital Management (hereinafter PCM) discharges its responsibility towards PCM s clients

More information

eastsussex.gov.uk UK Stewardship Code Statement

eastsussex.gov.uk UK Stewardship Code Statement eastsussex.gov.uk UK Stewardship Code Statement November 2018 Introduction The East Sussex Pension Fund (the Fund) recognises that Environmental, Social and Corporate Governance ( ESG ) issues can have

More information

Responsible & Sustainable Investment Statement

Responsible & Sustainable Investment Statement Responsible & Sustainable Investment Statement Nanuk Asset Management June 2018 Overview Nanuk is committed to investing sustainably and managing responsibly. Nanuk s commitment is inherent in the firm

More information

SUSTAINABLE COMPANIES FOR A BETTER PORTFOLIO

SUSTAINABLE COMPANIES FOR A BETTER PORTFOLIO SUSTAINABLE COMPANIES FOR A BETTER PORTFOLIO USING QUALITY AND ESG TO ENHANCE RETURNS By integrating environmental, social and governance (ESG) factors into their portfolios, investors are increasingly

More information

University of Melbourne. Sustainable Investment Framework. Background

University of Melbourne. Sustainable Investment Framework. Background University of Melbourne Sustainable Investment Framework Background The University of Melbourne (the University) is committed to sustainability in everything it does, from teaching and learning to research,

More information

European SRI Transparency Code Version 3:0

European SRI Transparency Code Version 3:0 European SRI Transparency Code Version 3:0 December 2014 The European SRI Transparency Code (the Code) focuses on SRI funds distributed publicly in Europe and has been designed to cover a range of assets

More information

Best practice in fixed income and environmental issues. Hilkka Komulainen, Project Manager, Fixed Income and Infrastructure

Best practice in fixed income and environmental issues. Hilkka Komulainen, Project Manager, Fixed Income and Infrastructure Best practice in fixed income and environmental issues Hilkka Komulainen, Project Manager, Fixed Income and Infrastructure ESG strategies in fixed income Both globally and in the Nordics, screening is

More information

The Current State of Responsible Investments in Sweden

The Current State of Responsible Investments in Sweden The Current State of Responsible Investments in Sweden Swesif 2015 Study Swesif Content Executive Summary... 3 The 2015 Swesif Survey... 4 1. Components of the Responsible Investment policy... 5 2. The

More information

Kiltearn Partners LLP FCA Ref: Stewardship Code Statement

Kiltearn Partners LLP FCA Ref: Stewardship Code Statement Kiltearn Partners LLP FCA Ref: 540470 This document describes how Kiltearn Partners LLP ( Kiltearn ) has applied the principles of the Financial Reporting Council s ( FRC s ) Stewardship Code (the Stewardship

More information

Responsible Investing Policy

Responsible Investing Policy Responsible Investing Policy Prepared September 2018 Version: 4.0 Issuing details: Prepared by: Suzanne Branton Chief Investment Officer Approved by: Board of Directors, CARE Super Pty Ltd Date of Approval:

More information

Dow Jones Sustainability North America Index Dow Jones Sustainability United States Index

Dow Jones Sustainability North America Index Dow Jones Sustainability United States Index Dow Jones Sustainability North America Index Dow Jones Sustainability United States Index Launch Event 23 September 2005 New York, USA 1 Program Sustainability Investing A Market Overview Jane Ambachtsheer

More information

Transparency code for SRI funds open to the public

Transparency code for SRI funds open to the public This document has been completed by AXA Investment Managers Paris in accordance with the Transparency code. The French Asset Management Association and the Forum for Responsible Investment assume no responsibility

More information

West Midlands Pension Fund. Responsible Investment Framework 2015

West Midlands Pension Fund. Responsible Investment Framework 2015 West Midlands Pension Fund Responsible Investment Framework 2015 June 2015 Responsible Investment Framework 2015 1) Introduction This framework defines the commitment of West Midlands Pension Fund ( the

More information

PRI Reporting Framework Main definitions 2018

PRI Reporting Framework Main definitions 2018 PRI Reporting Framework Main definitions 2018 November 2017 reporting@unpri.org +44 (0) 20 3714 3187 Table of Contents Introduction 2 ESG issues 3 Active/ Passive investments 4 ESG incorporation 5 Active

More information

Statement of Investment Principles January 2017

Statement of Investment Principles January 2017 1 Statement of Investment Principles January 2017 1 Introduction 1.1 Purpose of Statement This statement (the Statement ) sets out the principles governing decisions about the investment of the assets

More information

STATEMENT OF INVESTMENT POLICIES AND OBJECTIVES

STATEMENT OF INVESTMENT POLICIES AND OBJECTIVES 1. Introduction This Statement of Investment Policy and Objectives (the SIPO ) prepared by the Trustees (the Trustees ) of Foundation North (the Foundation ) sets out the objectives, policies and beliefs

More information

MSCI ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) INDEXES. A modern approach to ESG indexes

MSCI ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) INDEXES. A modern approach to ESG indexes MSCI ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) INDEXES A modern approach to ESG indexes MSCI ESG UNIVERSAL INDEXES The new MSCI ESG Universal Indexes are a modern way of indexing, and are designed to address

More information

RESPONSIBLE INVESTMENT FOR THE GEF TRUST FUND AS PART OF THE WORLD BANK TRUST FUND POOL

RESPONSIBLE INVESTMENT FOR THE GEF TRUST FUND AS PART OF THE WORLD BANK TRUST FUND POOL 55th GEF Council Meeting December 17-20, 2018 Washington, D.C. GEF/C.55/13 December 4, 2018 RESPONSIBLE INVESTMENT FOR THE GEF TRUST FUND AS PART OF THE WORLD BANK TRUST FUND POOL (Discussion Note prepared

More information

RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE

RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE OUR APPROACH NOT ALL RESPONSIBLE INVESTMENT SOLUTIONS ARE CREATED EQUAL Different organizations define responsible investing in different

More information

LONDON BOROUGH OF HARROW PENSION FUND INVESTMENT STRATEGY STATEMENT

LONDON BOROUGH OF HARROW PENSION FUND INVESTMENT STRATEGY STATEMENT LONDON BOROUGH OF HARROW PENSION FUND INVESTMENT STRATEGY STATEMENT March 2017 CONTENTS Executive Summary 1. Introduction 2. Statutory background 3. Directions by Secretary of State 4. Advisers 5. Objective

More information

Awakening the green giant

Awakening the green giant PERSPECTIVE MAY 2017 Awakening the green giant Climate change poses one of the biggest challenges of the 21st century. Still, fixed income markets lag in their response; the green bond market remains modest,

More information

Shetland Islands Council Pension Fund. Statement of Investment Principles

Shetland Islands Council Pension Fund. Statement of Investment Principles Shetland Islands Council Pension Fund 1.0 Introduction Statement of Investment Principles 1.1 The Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 2010 requires

More information

Accommodating ESG objectives through factor investing

Accommodating ESG objectives through factor investing Invesco Investment Insights Accommodating ESG objectives through factor investing June, 2018 Stephen Quance Director of Factor Investing Asia Pacific Key takeaways Many investors remain unsure how to implement

More information

RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE

RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE THIS BROCHURE IS PRINTED ON SUSTAINABLY RESOURCED AND RECYCLED PAPER STOCK OUR APPROACH NOT ALL RESPONSIBLE INVESTING SOLUTIONS ARE CREATED

More information

VANGUARD ESG ETFs FOR FINANCIAL ADVISORS ONLY. NOT FOR PUBLIC DISTRIBUTION.

VANGUARD ESG ETFs FOR FINANCIAL ADVISORS ONLY. NOT FOR PUBLIC DISTRIBUTION. VANGUARD ESG ETFs FOR FINANCIAL ADVISORS ONLY. NOT FOR PUBLIC DISTRIBUTION. Today more and more people are evaluating investments not only based on their financial goals but also based on their personal

More information

MSCI ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) INDEXES. A modern approach to ESG indexes

MSCI ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) INDEXES. A modern approach to ESG indexes MSCI ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) INDEXES A modern approach to ESG indexes MSCI ESG INDEXES With indexes that represent the performance of the most relevant environmental, social and governance

More information

***Revised*** Additions shown by underscoring; deletions shown by strikethrough

***Revised*** Additions shown by underscoring; deletions shown by strikethrough ***Revised*** Additions shown by underscoring; deletions shown by strikethrough Office of the Chief Investment Officer I-1 TO MEMBERS OF THE COMMITTEE ON INVESTMENTS / INVESTMENT ADVISORY GROUP: For Meeting

More information

Unit trusts are also popular because they offer:

Unit trusts are also popular because they offer: Unit trusts Unit trusts invest into assets including equities, bonds, cash and property and allow you to gain exposure to these assets without having to invest in them directly. They are also known as

More information