Goal 1: Making a difference with your investments
We believe that the most crucial way in which we as an asset management firm have an impact on sustainability is through our stewardship work with investee companies.
Our stewardship philosophy has three tenets:
- A robust, thematic, global investment process focused on long-term value drivers
- Active engagement with the companies we invest in and considered voting to drive positive change
on your behalf - Policy outreach where we believe we can play a positive role in shaping markets and regulation
CORPORATE SOCIAL RESPONSIBILITY REPORT 2020
It’s our view that investment has the power to deliver enduring value to clients in a way that benefits society.
Download the full reportSeven ways in which we a are making a difference with your investments:
1. Paris-aligned strategies
Our aim is that fossil-fuel-exposed investee companies commit to aligning to the Paris Climate Agreement. Where they fail, we will vote against director(s) and may sell their shares where we perceive there are explicit risks to capital. Companies must commit to Paris alignment and set out how they will become net-zero businesses by 2050.
2. Paris-aligned accounting
Where investee companies are exposed to material climate risks, our aim is that they commit to ensuring that their financial statements take account of the Paris Climate Agreement. Where they do not, we will vote against the approval of these accounts and / or members of the Audit Committee.
3. Paris-aligned auditing
Auditors at exposed investee companies should commit to alerting investors to accounts that are not Paris-aligned. Where they do not, we will vote against the auditor’s reappointment and/or remuneration.
4. Responsible COVID-19 approach
We want to see targeted investee companies abide by the ICCR Investor Statement on Coronavirus Response, including taking tangible steps to protect customers and staff and ensuring fair treatment within their supply chains. Where they do not we will vote against director(s) and/or remuneration.
5. Sound Corporate Governance
Our aim is for our investee companies to make tangible steps to improve governance practices such as executive remuneration and board structure.
6. Capital maintenance
We want our UK investee companies to provide clarity on their dividend-paying capacity, including providing transparency around their distributable reserves.
7. Auditor accountability to shareholders
Auditors need to perceive shareholders as their clients if they are to act in shareholder interests.
RESULTS
We have seen significant successes across these aims so far which we detail in our CSR Report.
