Responsible Investment 2021
2020 was an unprecedented year with environmental, social and governance (ESG) taking centre stage. The massive Australian wildfires at the start of the year killed an estimated one billion animals, destroyed habitats, and threatened many species with extinction. The enormous biodiversity loss along with the quality of life and economic impacts were stark reminders of the importance of limiting the earth’s temperature rise.
But 2020 might be better remembered for the Covid-19 pandemic and the Black Lives Matter movement. Both of which resulted in the “S” in ESG rising to prominence as companies sought to reaffirm their public image and adapt their business models to reflect new norms. World leaders responded to the pandemic with restrictions and lockdowns, resulting in environmental benefits such as reductions in greenhouse gas emissions, even if temporarily. Encouragingly, global cooperation led to the rapid development of vaccines, illustrating how public and private participants can work together to solve global issues such climate change, helping the transition to a more sustainable world.
As we emerge from the Covid-19 crisis, we support the call to build back a better, more inclusive and sustainable world. There is much to be done to achieve these goals, and we are committed to playing our part. We will continue our active stewardship, incorporating ESG factors in our investment process and creating long term value for our clients, supporting the transition to a more sustainable economy and society.
Responsible Investment 2021
- ESG Outlook: In the lead up to the 26th United Nations Conference of the Parties (COP26), environmental factors are expected to retake centre stage, after taking a back seat to social factors in 2020. Social factors will likely remain high on the agenda for 2021 however, as the devastation of Covid-19 on people’s livelihoods will no doubt empower investors to hold companies accountable for the welfare of their employees, and others in their supply chains. Investors will also be expecting companies to turn pledges made during last summer’s social reckoning into credible action plans.
- Approach to Responsible Investment: In 2020 we launched our 5-year business road map, which sets out our ambition to become a leader in responsible investing. We will embed responsible investment thinking in the heart of everything we do – from our interaction with clients, the incorporation of ESG factors into our core products and solutions, to the creation of new products and solutions that deliver value for end-investors and positive impact for society at large.
- Appendix: Demystifying Responsible Investment Terms
To read our 2021 Responsible Investment Report and know more on our approach here.