Investor case studies

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This session looked at case studies of investors who have integrated sustainability practices into their investment decision making and portfolio construction, their outlook for the next five to 10 years, and what they think ESG 2.0 will look like in their portfolios.[vc_quotes layout=”accordion” 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title=”Moderator” el_class=””][vc_empty_space height=”10px”]

Key takeaways

Lucy

• We think about allocating risk, not capital. We take a whole portfolio view.
• We assess ESG risks and benefits. Can we mitigate risks or take advantage of benefits?
• Before we invest, we think about whether we can add value by active engagement and stewardship over the long-term.
• It is important for sustainability to be integral to every cog of the investment wheel.
• We ask our asset manager managers to follow the CFA’s code of ethics and report on their compliance to it, which gives us an insight into the culture.
• We should continue to ask ourselves what our portfolio impacts, not just what our portfolio returns.

 Andrew

• The fund focuses on 9 of the 17 SDGs.
• For sustainable investing 2.0, asset managers will need to identify the source of alpha.
• In future, there will be a close examination of claims made versus claims achieved.
• There is currently problematic inconsistency in rating agency assessments in the ESG space.

Dewi

• A few years back, we set a target to invest 10 per cent in climate actions.
• We wish to invest at least US$8bn in climate initiatives by 2030.
• We have an ESG tilt to our equities portfolio.
• The lack of data and lack of comparability is an ongoing issue.
• Investment in the S and G is expected to continue in the current global circumstances.