About us
Responsible investment
Integral to our investment philosophy
- At the heart of our RI approach is a strong research capability embedded within our investment process
- Our research is supported by proprietary RI ratings that enable us to assess material ESG risks and opportunities for over 8,000 companies worldwide
- As active managers, engagement is key and we have a strong record in influencing positive change through stewardship and voting
- We have a solid culture of collaboration that underpins our research and investment approach
- We offer a range of dedicated RI strategies, including our innovative Social Bond franchise, for clients seeking to more actively promote ESG factors or achieve specific sustainable outcomes
Research
Identifying opportunities: A thematic approach

Proprietary Ratings
These proprietary ratings are built on two models:
- Financial Stewardship: This combines four separate [academic] frameworks that measure prudent, long-term financial governance to identify well-managed businesses. These frameworks offer insight into whether corporate governance is working in practice.
- ESG Materiality: Companies that manage ESG risks are better placed to address future challenges, avoid technical and social obsolescence, and capitalise on both known and unknown business opportunities. As society, markets, and government regulations rapidly evolve, the companies that lead on the most financially material industry ESG metrics should be well-placed to mitigate risks, build competitive advantage and sustain their business in the long term.
Literature
Stewardship
Powering change
- the material significance of an issue to the company
- the risk to our clients
- the size of our holding
- our opportunity to collaborate
- and our ability to effect change

Proxy voting: making our clients’ voices heard
We vote actively at company meetings. We view this as one of the most effective ways of signalling approval (or otherwise) of a company’s governance, management, board, and strategy and an active way to drive positive change. We carry out voting for our clients in all markets, voting for all our funds and for those clients who delegate authority to us. We vote in consideration of all relevant factors to support the best economic outcome in the long-run.
Each year we cast proxy votes on approximately 6,500 shareholder meetings across 70 countries.
Climate change

- Water stress exposure and physical risk analysis. We are investigating new data sources that might enable a more granular analysis of corporate risk. We are interested in assessing the exposure of facilities and operations to physical climate risk. This includes tropical storms, wildfires, flood risks and more incremental sea-level increases.
- Scope 3 Emissions. Until recently, our analysis has focused on Scope 1 & 2 emissions, however, we have begun looking at companies’ exposure to Scope 3 emissions to help inform our Emission Trajectory Analysis.
- Dynamic adaptation analytics. The standard way of assessing portfolio exposure to carbon emissions and climate change is through static exposure-based measures that do not consider how well companies might adapt to climate change. Responding to this, we are working on economic models that enable a more forward-looking analysis of companies’ adaptation capability.
- Climate Value at Risk Modelling. Building on work from the London School of Economics, we are developing a climate Value At Risk (VAR) model, combining top-down macro with bottom-up fundamental analysis, to create a notional VAR number. For example using property, plant and equipment (to reflect the scope of potential capex). One possible approach is to show materiality through a cash flow-based VAR.
We are a Signatory Participant to Climate Action 100+ (CA100+) It is a collaborative engagement program of over 615 investors with more than USD $55 trillion in AUM*. The initiative seeks to ensure that the world’s largest corporate greenhouse gas emitters take necessary action on climate change. It has been highlighted as one of 1 key global initiatives to tackle climate change. Investor signatories to CA100+ engage companies on improving climate change governance, cutting emissions and strengthening climate-related financial disclosures.


Industry collaborations
Signatories and affiliations: Coalitions to promote RI
- The United Nations Principles for Responsible Investment (PRI). We were a founding signatory in 2006. Which means that responsible investment has been an established pillar of the business for well over a decade.

- We are a Signatory Participant to Climate Action 100+ (CA100+) It is a collaborative engagement program of over 615 investors with more than USD $55 trillion in AUM*. The initiative seeks to ensure that the world’s largest corporate greenhouse gas emitters take necessary action on climate change. It has been highlighted as one of 12 key global initiatives to tackle climate change. Investor signatories to CA100+ engage companies on improving climate change governance, cutting emissions and strengthening climate-related financial disclosures.

- We are Signatory to the [UN Aligned] Net Zero Asset Managers Initiative. The Initiative aims to galvanise the asset management industry to commit to a goal of net zero emissions and to play their part (as an investor in their own organisation) to deliver the goals of the Paris Agreement and a Just Transition. We support the goal of net zero greenhouse gas emissions by 2050 or sooner in line with global efforts to limit warming to 1.5 degrees Celsius above pre-industrial levels, and we support investing aligned with this goal.

- The UK Stewardship Code 2020. This Code, maintained by the UK’s Financial Reporting Council, sets high stewardship standards for those investing money on behalf of UK savers and pensioners, and those that support them. Stewardship is 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. We became a signatory to the UK Stewardship Code in 2012 and active stewardship has long been part of our investment approach and values. We believe our Firm philosophy is in alignment with the principles set out in the new Stewardship Code and we are in the process of preparing our initial submission to evidence this to maintain our signatory status under the 2020 code.
- Investor Stewardship Group. This US network of investors and asset managers promotes good practice in stewardship and corporate governance.

- UK Women in Finance Charter. We were the first asset manager signatory. Signatories support the advancement of women in financial services. They also set targets and implement strategies appropriate to their organisation and report on progress against these targets.
We have collaborated on various thematic and policy initiatives, including:
- The introduction of green gilts in the UK. The idea of a green gilt builds on the growing issuance of environmental and social sovereign bonds around the globe. It marks an important step forward in the development of the global green bond market by showing how the money raised can simultaneously deliver environmental benefits, reduce inequality and help us build back better.

- EU Sustainable Finance Reforms. We participate heavily in industry working groups that review and respond to the EU consultations.
- UK Pre-emption Group. This group has developed special guidance facilitating effective capital raising during the Covid crisis.
Investment team updates - Market updates 1 April 2022
Responsible Investment Quarterly - Q4 2021
Investment team updates - Market updates 4 March 2022
Responsible investment: themes to look out for in 2022
Responsible Investment Quarterly - Q3 2021
Green hydrogen is finally showing its true colours
Policies and Disclosures
View our policies:
View our disclosures:
You may also like
About us
Our funds
Responsible business
Our new Responsible Business Report outlines our commitment to managing our business in a responsible and transparent manner. This includes how we serve our customers, manage their assets, support and develop our employees and contribute to the communities we are part of.