Do as I do, and as I say: putting ESG into practice
One of the challenges for asset managers prompting investee companies to up their game on environmental, social and governance (ESG) issues, is to ensure that they themselves are meeting high, or at least acceptable ESG standards.
It is a significant undertaking to commit to reducing a portfolio’s carbon footprint, and then accurately measuring and conveying to both internal and external stakeholders, how that is done.
The latest firm to achieve that is Dutch asset manager Actiam, which has some €54.6 bln AUM (December 2016). Actiam has managed to decrease the carbon footprint of its fund range by 2.25% overall since 2015.
It has an overall target of reducing its CO2-emissions by 25% by 2025 and achieving a water-neutral portfolio by 2030. Earlier this year it implemented a ban of coal mining and tobacco stocks from all its investment portfolios and index funds.
Fortuna AMC has specialist expertise in assessing Environmental, Social and Governance (ESG) issues affecting investors, and how to address and communicate the risks and opportunities they present. If you would like to know more, please contact Caroline@fortunaamc.co.uk