Facilitator: Niall Buggy Expert: Lucy Acton
Headlines:
The ESG themes that help achieve the goal of a sustainable, inclusive & low carbon economy are:
- Transition towards a low carbon economy
- Natural capital preservation, Social Cohesion
- Client, Product & societal responsibility
- Governance Practices for Sustainable Development
Context:
Engagement Policy seeks to contribute to best practise dissemination, trigger positive change on how investees are managing their impact and support investees in their own transition towards a more sustainable, inclusive and low carbon businesses.
Voting Policy emphasizes the need for an accountable, diversified and well-functioning board.
Awareness has promoted change in institutional behaviours/ focus with regards to Sustainable Investing (ESG). Nevertheless, EU companies are most transparent and willing to engage, US companies are less transparent, whilst EM markets are still trying to comprehend the initiative/trying to engage.
Key takeaways:
- How the industry effects change - our businesses (financial sector) are not carbon intensive in themselves but the commitments our industry make can be a genuine force for change in terms of how we allocate capital in the future
- Complexity of the subject and depth of details are overwhelming for most clients, and they expect the manager to deal with the detailed analysis: this is seen as a value add
