Responsible investment is about a relationship. You want to know that the manager is sticking to their investment style and is aligned with you on responsible investment. It can undermine our confidence in a manager if they are not prepared to go on this journey with us. Deakin: You are underwriting the manager as much as you are underwriting what they are investing in on your behalf. There should be common ground when selecting managers. You are looking for a base level of com- mitment, not a photo-fit manager. As much as you want diversity from your managers, you do not want them to give you the same thing. There is room for a house view which is not directly aligned with your own.


When you come across managers that are not good at articulating how they integrate ESG, but are doing it, you have to go on a journey with them. For us, that means starting to articulate that in a public space, joining other investors and asset managers to become part of the movement. Czupryna: I would be cautious about managers who are doing ESG without knowing it. If we go too far with ESG being something that you can do without adding the resources needed, the risk is the dilution of ESG. It becomes almost a theory.


For ESG to be material for an investment it needs to go beyond that. It is not just about looking at a few factors, it is also about showing how it is making a difference and how you are behaving towards companies as a responsible investor. Are you engaging with them? Are you using your voting rights to foster improvements at these companies? This is where we are cautious when we advise our clients on selecting external managers.


November 2019 portfolio institutional roundtable: Responsible investing 17


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