We believe that engagement can both help to secure compound returns, and benefit people and planet.
Stewardship is instrumental to the creation of both financial and wider societal value.
The Financial Reporting Council defines stewardship as “the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society”.
By encouraging companies to improve, we believe we can help them achieve a positive outcome.
All businesses have positive and negative impacts on people and planet.
The EU’s principal adverse impacts (PAI) framework focuses on some of the negative externalities which businesses can reduce. We monitor these in our research and engagement. Our ambition is to help companies enhance their positive, and reduce their negative impacts.
Our Impact Priorities
We draw on both the UN’s Sustainable Development Goals (SDGs) and the EU’s principal adverse impact (PAI) framework.
One of our core themes relates to climate change. We want companies to develop science-based climate targets. We have joined the Net Zero Asset Managers Initiative, signalling our support for the transition to a net zero economy.
Other priorities include a focus on nature, and we have joined the Taskforce on Nature-related Financial Disclosures to help develop best practice in this area. On the social front, we have joined the Investor Alliance on Human Rights, and are particularly aware of the human rights risk and impacts inherent in supply chains among other areas.