Putting our clients' interests first means recognising and managing the investments risks and opportunities associated with environmental, social and governance (ESG) factors.
What is ESG?
Issues relating to the quality and functioning of the natural environment and natural systems, such as carbon emissions, environmental regulations, water stress and waste.
Issues relating to the rights, wellbeing and interests of people and communities, such as labour management, health & safety and product safety.
Issues relating to the management and oversight of companies and other investee entities, such as board, ownership and pay.
Why invest sustainably?
ESG factors can impact corporate revenues, costs and operating cash flows. They can erode the value of assets and limit access to financing.
Companies that address these issues by adopting sustainable business practices can navigate the risks and take advantage of opportunities to create long-term value.
Investing sustainably can be achieved by avoiding companies with poor practices in this area, actively selecting leaders in each field, or focusing on specific themes such as renewable energy, clean water or low carbon emissions.
Positive ESG selection and exclusion does not need to cost investors returns.
MSCI ACWI ESG Leaders is a capitalisation-weighted price index that provides exposure to companies with high Environmental, Social and Governance (ESG) rankings relative to their sector peers and excludes companies with involvement in alcohol, gambling, tobacco, nuclear power and weapons. ESG rankings are given to companies based on the MSCI framework. The MSCI ESG Leaders index aims to target the sector weights of the underlying indices to limit systematic risk introduced by the ESG selection process.
Past performance is not a reliable indicator of current and future results.
Our capabilities are aligned with client objectives
Through our engagement with clients and partner organisations, we continually expand our thinking on key ESG issues and best practices.
We have been a signatory to the United Nations-supported Principles for Responsible Investment initiative since 2007 and are committed to incorporating ESG factors into our investment practices, where material and relevant.
We offer solutions across the spectrum of sustainable investing, to meet diverse client needs.