Responsible investing

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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”]

Related reading

Climate change and infectious diseases Gemologist: Can we adapt to the new climate normal? Prosperity and preservation: the aim of active ownership Stewardship during and after the pandemic Stewardship – The 2020 vision Tackling the climate crisis The coronavirus and our relationship with nature The Goldilocks crisis: why we must use Covid-19 to wake-up to climate change[vc_empty_space height=”10px”]

Key takeaways

  • 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”]

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China ESG risk: the next unknown

China ESG risk: the next unknown

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.

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