Responsible Investment 2021
As a founding member of the One Planet Asset Manager Initiative, we were pleased to see it expand from its original eight asset manager members in 2020.
As global investors, we are aware of the risks and opportunities climate change presents to the investments we make on behalf of our clients and as such we are committed to playing our full part in addressing this challenge.
To support a sustainable financial system we participate and contribute to various working groups and collaborative initiatives. We take part in both regional and global initiatives, a few of which are further outlined below:
- As a founding member of the One Planet Asset Manager Initiative, we were pleased to see it expand from its original eight asset manager members in 2020 with the addition of six new asset managers. There was other considerable progress made in 2020 in supporting sovereign wealth funds implementing Principles of the One Planet Sovereign Wealth Fund (OPSWF) Framework. During the third OPSWF CEO Summit on the 20th November 2020 a series of concrete actions were approved and announced, including a commitment from the OPAM members to support the recommendations of Task Force on Climate-related Disclosures (TCFD) and call for alignment to TCFD among investee companies.
- Our collaborative engagement as part of Climate Action 100+ plays a crucial role in engaging in dialogue with the largest corporate emitters of greenhouse gases to encourage them to commit to stronger governance frameworks, GHG emissions reduction target and climate-related disclosures. In 2020 we continued this work, leading and co-leading eleven engagements with a number of companies and below are a few examples of the changes we have seen.
Supporting a sustainable finance system
We are committed to playing an active and constructive role in supporting the development of a well-functioning and more sustainable financial system. This involves engaging with regulators and policymakers directly and through our work and participation in industry bodies. We focus on three main areas:
- Addressing the key risk of climate change through supporting policy and action to expedite the transition to a low-carbon economy. We therefore join public investor statements and participate in industry body working groups where we believe this will signal support for policy measures and frameworks that support the low-carbon transition and develop relevant insights.
- Directing capital to deliver on the Paris Climate Agreement and UN Sustainable Development Goals. Collaboration is central to making progress in this area and we leverage our global relationships with development finance institutions, investors, regulators and relevant organisations and initiatives to innovate.
- Improving market standards and transparency to help markets operate more efficiently and to strengthen the ability of investors to identify material ESG risks and opportunities to support the two above areas. Standards and transparency are central to providing the appropriate information for us as investors, as well as for our clients. We therefore support voluntary and, where appropriate, regulatory frameworks to enhance company disclosure on material sustainability issues.
We are active members of a variety of industry bodies, initiatives and networks that advocate for progressive public policy development and action on sustainable investment. These include the IIGCC Policy Group, the UK Investment Association Sustainable and Responsible Investment Committee, Impact Investing Institute and UKSIF.