Sustainable Approach

Investing for Positive Impact: Responsible Investing Explained

Our world is undergoing rapid transformations beyond anyone’s expectations. We firmly believe that responsible investing holds immense potential to shape a better world and foster a sustainable future.

Responsible investing is a powerful concept where money is harnessed as a force for good. By considering environmental, social, and corporate governance (ESG) factors, responsible investing aims to create a better future for all.

It’s essential to understand that responsible investing doesn’t mean sacrificing returns. On the contrary, it becomes a vital indicator of a company’s future potential. As shareholders demand action, companies are compelled to consider their impact on the planet and there are consequences for those that do not adapt.

We firmly believe that responsible investing can be a driving force for positive change. By thoughtfully directing our pensions and savings, we can influence companies to evolve into better versions of themselves.

When implementing responsible investing, fund managers focus on three crucial factors: environmental impact, social responsibility, and ethical corporate governance. These factors assess how companies behave and manage their global impact.

Through responsible investing, we aim to shape a better world and build a sustainable future.

Investing for a Brighter Tomorrow

Responsible Investing Strategies

Responsible investing encompasses several investment approaches.

• Integrating ESG for Informed Decisions – Through Responsible Investment, we strive to grasp future opportunities and risks.

Our fund managers enhance their decision-making process by incorporating environmental, social, and governance (ESG) factors into their investment considerations. They evaluate which factors hold the greatest impact on a company and manage investment opportunities and risks accordingly.

When Sat James’s Place selects new fund managers, responsible investment becomes a pivotal criterion. They must demonstrate a clear responsible investing policy, individuals committed to integrating ESG into their decision-making, and a firm commitment to further embedding ESG factors.

All existing and new fund managers must be signatories of the United Nations-supported Principles for Responsible Investment (PRI). The PRI serves as the industry standard for evaluating a firm’s overall approach to responsible investment. Signatories undergo assessment and scoring based on their approach.

• Promoting a Sustainable Future – By engaging in sustainable investing, we actively contribute to the transformation required for a better future. Our investment in innovative solutions, such as green infrastructure, sustainable agriculture and water efficiency, not only offers potential investment returns but also fosters a healthier planet.
• Engagement: Active Stewardship for Progress – Our fund managers embrace a responsible stewardship approach, actively engaging with businesses to drive measurable progress on environmental and social matters, including climate change.

Engagement takes various forms, such as face-to-face shareholder meetings, collective industry action, and exercising voting rights. Each fund manager prioritizes engaging with investee companies on financially material ESG issues.

In 2021, we partnered with Robeco, global leaders in company engagement, to collaborate with our fund managers and the companies they invest in, advocating positive change. The Quarterly Active Ownership Reports by Robeco offer insights into the engagement process and its impactful outcomes.

• Ethical Investing: Negative Screening – Ethical investing incorporates moral principles into the investment selection process, often referred to as negative or exclusionary screening. This approach excludes companies that fail to meet specific criteria, particularly in sectors like tobacco, gambling, and fossil fuels.
• Introducing Our Sustainable & Responsible Equity Fund – Our Sustainable and Responsible Equity Fund centers on investments that drive the transition towards a sustainable, low-carbon economy. Managed by Impax Asset Management, this fund targets opportunities emerging from the shift to a more sustainable world. It seeks to capitalize on areas like clean energy transition, advancements in healthcare technology, and climate change mitigation.