Editorial


RESPONSIBLE INVESTING


CONTENTS


P4 - 5: Responsible investing Welcome to our coverage on how the pan- demic has impacted this particular invest- ment strategy.


Responsible investors silenced the sceptics last year. The devastation caused by the pandemic and the social justice protests witnessed around the world proved that value-led investing is not just a PR exercise or a lux- ury to have when times are good. It can have a material impact on portfolios.


Owning assets that protect the environment, treat employees, suppliers and communities respectfully and are led by people from a range of back- grounds could reduce risk and protect value. And judging by the perfor- mance of ESG funds last year, investing responsibility does not necessar- ily mean sacrificing return. Despite economies across the world taking a hit from the lockdowns that were ordered in response to the crisis, environmental and social issues did not take a backseat. Instead, “build back greener” has been at the heart of discussions on how governments should manage the impact of the pandemic and breathe life back into their deflated economies. The British government appears to be on side here. The recently imple- mented Pension Schemes Bill includes new regulation directing larger pension schemes to prove how they are protecting savers from the impact of climate change. Moreover, the UK government’s commitment to a legally binding carbon neutrality target by 2030 shows that this is no longer a niche issue and that attempts to revive the economy may even accelerate the “green revolution”. Responsible investing is a broad church and investors are realising that a holistic view of these issues is needed to make a positive impact with their capital. Cutting harmful gas emissions in portfolios does not do the job anymore. Investors are more sophisticated and understand that a range of issues need to be factored into their decision making to build a sustainable future, such as water conservation, biodiversity and the food chain. A case in point is the Covid pandemic, which is believed to have started in a food market, highlighting the potential scale of consequences of problems in the food chain. So responsible investing as an investment strategy looks like it is here to stay and, if lessons have been learnt from the pandemic, it may have picked up a few more followers.


Mark Dunne Editor


m.dunne@portfolio-institutional.co.uk


P6: Responsible investing in figures An overview of the strategy in six figures.


P7: The participants An introduction to the professionals taking part in our discussion.


P8 -15: Responsible investing: The discussion


Pension schemes, asset managers and a consultant discuss responsible investing in the age of Covid-19.


P16 -17: Getting the green light on green investment


BNP Paribas AM’s Edward Lees discusses the lessons of the pandemic.


P18 - 21: 2021: the year of planet and people Newton Investment Management’s Scott Freedman looks at the trends shaping sus- tainable debt.


P20-21: Sustainable bonds outlook Jupiter Asset Management examine the most important ESG themes of the year.


P22-25: Full disclosure Regulators are increasingly targeting asset owners in a bid to raise corporate transpar- ency standards, but how effective are pension schemes at collecting non-financial data from their portfolio companies?


March 2021 portfolio institutional roundtable: Responsible investing


3


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28