Our investment committee have recently launched, in keeping with our own values and ahead of significant market trends, additional ESG Investment offerings as a key part of our investment proposition. Our solutions cover a range of preferences and utilise a robust process of quantitative and qualitative analysis within fund selection.
An approach to managing assets that sees investors include environmental, social and governance (ESG) factors as well as financial return in their decisions about what to invest in. There are two key themes within ESG mandated funds: Positive selection is where equities have been selected based on their believed positive impact while negative selection is the deliberate avoidance of investing in certain industries/companies who some feel have a negative impact.
Considers the implications of companies upon the planet today and in the future. E.g. pollution, waste, raw materials, ecosystems, renewable energy and recycling.
Considers the social implications are having on people in the world. E.g. Human rights, working conditions, corporate citizenship, wider community and consumer protection.
Considers the interests of all stakeholders affected by the company’s activities. E.g. Business ethics, Equality and diversity, fair treatment of labour, health and safety and Shareholders rights.
It aims to combine risk adjusted capital appreciation while reflecting investor and beneficiary values in an investment strategy. It complements traditional financial analysis where ESG strength can signal business longevity and ESG mandated funds have, in recent years, outperformed some of their traditionally managed counterparts.