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Responsible investment is a long-term movement whose time has come. How can its leaders take the movement further? This session examined the importance of impactful stewardship to deliver sustainable wealth creation and its potential to transform financial, social and environmental outcomes.[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Saker%20Nussebeih%20CBE%22%2C%22job_role%22%3A%22Chief%20executive%2C%20International%20at%20Federated%20Hermes%20(United%20Kingdom)%22%2C%22content%22%3A%22Saker%20Nussebeih%20is%20chief%20executive%20of%20the%20international%20business%20of%20Federated%20Hermes%2C%20appointed%20November%202011%2C%20having%20joined%20in%20June%202009%20as%20chief%20investment%20officer.%20He%20is%20also%20a%20member%20of%20the%20Federated%20Hermes%20Executive%20team.%20Prior%20to%20this%2C%20Nussebeih%20was%20global%20head%20of%20equities%20at%20Fortis%20Investments%2C%20having%20previously%20been%20CIO%20global%20equities%20since%202005.%20Before%20this%2C%20he%20was%20CIO%20of%20global%20equities%20and%20head%20of%20marketing%20for%20SGAM%20UK.%20This%20followed%20SGAM%E2%80%99s%20acquisition%20of%20Trust%20Company%20of%20the%20West%2C%20where%20Nussebeih%20was%20a%20managing%20director%20running%20global%20and%20international%20strategies%2C%20as%20well%20the%20London%20office.%20He%20started%20his%20career%20at%20Mercury%20Asset%20Management%20in%201987.%20%5CnNussebeih%20is%20founder%20of%20the%20300%20Club%20and%20was%20an%20inaugural%20member%20of%20the%20CFA%20Institute%E2%80%99s%20Future%20of%20Finance%20Advisory%20Council%20from%202013%20until%202019.%20He%20is%20a%20member%20of%20the%20IIRC%20Council%2C%20the%20FCA-PRA%20Climate%20Financial%20Risk%20Forum%2C%20the%20United%20Nations%20Environmental%20Programme%20Financial%20Initiative%20Steering%20Committee%2C%20the%20Banking%20Standards%20Board%2C%20the%20UK%20National%20Advisory%20Board%20on%20Impact%20Investing%2C%20and%20the%20advisory%20Board%20of%20the%20National%20Youth%20Orchestra.%5CnIn%202018%2C%20Nussebeih%20was%20named%20CEO%20of%20the%20Year%20at%20the%20Financial%20News%20Asset%20Management%20Europe%20Awards.%20He%20has%20a%20BA%20and%20PhD%20in%20Medieval%20History%20from%20King’s%20College%2C%20University%20of%20London.%5CnHe%20was%20awarded%20a%20CBE%20(Commander%20of%20the%20Order%20of%20the%20British%20Empire)%20in%20the%20Queen%E2%80%99s%202019%20New%20Year’s%20Honours%20list%20for%20services%20to%20Responsible%20Business%20and%20Finance.%22%2C%22image%22%3A%2233576%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fsaker-nusseibeh-cbe-6b15a85%2F%3ForiginalSubdomain%3Duk%22%7D%5D” title=”Speaker” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Amanda%20White%22%2C%22job_role%22%3A%22Director%2C%20institutional%20content%2C%20Conexus%20Financial%20(Australia)%22%2C%22content%22%3A%22White%20is%20responsible%20for%20the%20content%20across%20all%20Conexus%20Financial%E2%80%99s%20institutional%20media%20and%20events.%20She%20is%20responsible%20for%20directing%20the%20bi-annual%20Fiduciary%20Investors%20Symposium%20which%20challenges%20global%20investors%20on%20investment%20best%20practice%20and%20aims%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%2C%20and%20political%20contexts%2C%20as%20well%20as%20promote%20the%20long-term%20stability%20of%20markets%20and%20sustainable%20retirement%20incomes.%20She%20is%20the%20editor%20of%20conexust1f.flywheelstaging.com%2C%20the%20online%20news%20and%20analysis%20site%20for%20the%20world%E2%80%99s%20largest%20institutional%20investors.%20White%20has%20been%20an%20investment%20journalist%20for%20more%20than%2020%20years%20and%20has%20edited%20industry%20journals%20including%20Investment%20%26%20Technology%2C%20Investor%20Weekly%20and%20MasterFunds%20Quarterly.%20She%20was%20previously%20editorial%20director%20of%20InvestorInfo%20and%20has%20worked%20as%20a%20freelance%20journalist%20for%20the%20Australian%20Financial%20Review%2C%20CFO%2C%20Asset%20and%20Asia%20Asset%20Management.%20She%20has%20a%20Bachelor%20of%20Economics%20from%20Sydney%20University%20and%20a%20Master%20of%20Arts%20in%20Journalism%20from%20the%20University%20of%20Technology%2C%20Sydney.%20She%20was%20previously%20a%20columnist%20for%20the%20Canadian%20publication%2C%20Corporate%20Knights%2C%20which%20is%20distributed%20by%20the%20Globe%20and%20Mail%20and%20The%20Washington%20Post.%20White%20is%20currently%20a%20fellow%20in%20the%20Finance%20Leaders%20Fellowship%20at%20the%20Aspen%20Institute.%20The%20two-year%20program%20consists%20of%2022%20fellows%20and%20seeks%20to%20develop%20the%20next%20generation%20of%20responsible%2C%20community-spirited%20leaders%20in%20the%20global%20finance%20industry.%22%2C%22image%22%3A%2233531%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Famanda-white-101a7515%2F%3ForiginalSubdomain%3Dau%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]
Long-term deep engagement on the issues that matter most leads to substantial outperformance versus the sector. Going forward, there will be an indisputable recognition by all investors that ownership of companies demands a critical element of stewardship.
Legitimate ESG managers have full integration, deep engagement with investee companies and a humility to accept that we are still learning. ESG is not a ‘do-gooder’ thing, it’s about doing capitalism better. I welcome every manager aiming to be an ESG manager. This is about us all winning, not one company winning.
Not believing in diversity is simply stupidity because it halves the supply chain.
COVID has taught us that culture, for example, has a real value in challenging circumstances which hasn’t always been truly acknowledged by investment analysis.
If you have a 30 year time horizon, expenditure on engagement is a value adding investment, not merely a cost.
Don’t bet on markets. Instead, invest and engage for the long-term. If you want to bet, go to Vegas, it’s a lot more fun.
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Poll results
Should stewardship be mandatory?[vc_line_chart x_values=”” values=”%5B%7B%22title%22%3A%22Yes%22%2C%22y_values%22%3A%2259%22%2C%22color%22%3A%22blue%22%7D%2C%7B%22title%22%3A%22No%22%2C%22y_values%22%3A%2224%22%2C%22color%22%3A%22pink%22%7D%2C%7B%22title%22%3A%22Maybe%22%2C%22y_values%22%3A%2218%22%2C%22color%22%3A%22chino%22%2C%22custom_color%22%3A%22%2350485b%22%7D%5D”]
One of the most important, upcoming challenges at CalSTRS is how the fund should evaluate Chinese investments from a human capital and environmental standpoint, says Chris Ailman, chief investment officer at the giant pension fund.
Last Thursday, March 12 the US Senate Democrats’ Special Committee on the Climate Crisis heard from industry experts, including Bob Litterman and Frederic Samama, on the economic risks of climate change. They all pushed for a price on carbon and for action, now.
Being passively invested shouldn’t mean being passive with regard to responsibilities says the Church of England Pension Board which has developed a new climate transition index with FTSE Russell, LSE and TPI that is the first to incorporate forward-looking climate data.
Designing a 1.5°C asset portfolio to mobilise capital for a sustainable future requires some big thinking and intensive collaboration, not to mention transformational change that extends way beyond the borders of the investment industry. So what role do investors play?
The largest pension fund in Europe, the €450 billion Dutch ABP, set out its sustainability and responsible investment plan for 2025 last month. The plan sets out long-term objectives – in line with the goal of a climate-neutral economy by 2050 – as well as the short-term steps to achieve that.
The UK’s £30 billion Brunel Pension Partnership is taking investing in a carbon zero future to a whole new level. It has just published a far-reaching Climate Change Policy filled with actions and deadlines linked to the goals of the Paris Agreement.
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