LEADERS UNIVERSE SUSTAINABLE REAL ASSETS

Cardano is a pure-play sustainable investment manager with 30 years’ experience in the field. Cardano brings on board proven technology and a dedicated team of sustainability professionals with industry-leading expertise in planetary boundaries, social foundations, environmental, social and governance (ESG) data and research, impact and stewardship.

Cardano has a sustainability framework across the group which is an extremely rigorous, hands-on and action-based approach focused on ensuring continuous improvements in those companies in which we invest.

The framework is based on the concept of doughnut economics, with our investment activities and portfolios applied within clearly delineated social foundations and planetary boundaries.  In terms of the boundaries, the current state of the world is that we are in overshoot (meaning using more than the planet can replenish itself). This is on carbon/climate, deforestation, water use in water-scarce areas and biodiversity.  On the social foundation, we are in undershoot on topics like living wage, access to nutrition or access to medicine.

Based on this approach, we have identified 7 transitions that are ongoing or should be started. Cardano wants to play a leading role in these transition from a dual perspective. Making our investment portfolios more resilient and creating an impact on the real world/real society.

We have translated the themes that our in over- or undershoot into measurable targets. These targets reflect the points where there is no longer an under- or overshoot. In total, we have 7 amongst others:

• Climate-neutral in 2050
• Water neutral by 2030
• No net loss of biodiversity by 2030
• Zero deforestation by 2030

We use all our tools available to reach these targets with a focus on the real-world impact mentioned. We have created a model of influence, setting out our instruments and the impact they have in the real world. Buying or selling stocks or bonds is the lowest-scoring element in our model.

Fundamental to our approach is our screening of companies according to their compatibility with our view on the transitions ethical principles and our expectations across seven key sustainability drivers: fossil fuel use, water use, land use, circular economy, issues around waste and chemical use, human capital management and human rights and governance. We assess companies and entities in terms of adaptivity. Are companies willing and able to transition to become part of the sustainable world within the planetary boundaries and the social foundation.

This holistic view determines whether we add a company to our investment portfolio – and also informs our stewardship engagement and voting activities. Unlike some of our competitors, it also applies to all the assets we manage.

Storebrand Asset Management is a leading player in the Nordic market and a pioneer within the field of sustainable investments. We have been at the forefront of sustainable investing since the mid-1990s and are one of the founding signatories of the PRI.

We fundamentally regard sustainability as a significant driver of corporate value i.e., companies that manage current and future environmental and social opportunities and risks will emerge as leaders and are more likely to create a competitive advantage and long-term stakeholder value.

Sustainability is integral to Storebrand Asset Management, this means we evaluate economic, social and environmental aspects before we make any decisions. Our long-term vision for the year 2050 is a world where all people live well, and within the earth’s natural limits. Our standard for sustainable investments is based on the assumption that the companies which contribute to solving society’s problems in a sustainable way will also be the most profitable in the long run. Storebrand was the first Norwegian company to establish a sustainable investment department in 1995, and we have one of the most experienced environmental, social and governance (ESG) teams in the Nordic region. Since 2010, ESG analysis has been steadily integrated into the daily risk management and company/asset selection processes of Storebrand Asset Management’s fund managers.

Storebrand Asset Management’s sustainable investment strategy includes three distinct dimensions that are continuously evaluated and developed to remain in the forefront of sustainable investing. Our three dimensions include risk reduction through exclusions, selection of top performers through a sustainability score and lastly exertion of influence through active ownership.

CBRE Investment Management seeks to deliver sustainable real asset solutions through strategies focusing on direct real estate, indirect real estate, real estate credit, infrastructure and private equity, and listed real assets. We have the responsibility and opportunity to enhance the sustainability of the environment, the well-being of people and to positively influence our operating partners, occupiers, supply chain and industry. Our Sustainability Vision (“Vision”) recognizes that ESG factors are fundamental to our business and to drive long-term outperformance in the real assets portfolios we manage. We seek to implement our Vision through our stewardship, including influencing our operating partners, underlying managers and investee companies.

In our Vision, we seek to lead the transition to a sustainable, net-zero carbon, resilient, equitable and healthy society. Recognizing that this can be achieved only as a collaborative effort, we encourage our partners to join us in delivering this ambition together. We focus on three material ESG topics, identified through comprehensive stakeholder engagement:

• Climate: Address climate-related risks and opportunities by focusing on delivering net-zero carbon performance and physical resilience.
• People: Champion diversity, equity, inclusion and the well-being of our people and other stakeholders.
• Influence: Engage and positively influence key stakeholders where we do not have direct management control

We have an integrated approach to responsible investment and ESG research that is embedded within our investment approach, and is supported by our culture of collaboration, sharing of research and ideas, and robust debate. In developing our understanding of a business we take into account its approach to managing environmental, social and governance issues, as well as any controversies that may have arisen.

In 2018 we launched a proprietary and innovative responsible investment (RI) ratings system that combines an assessment of a company’s financial stewardship with an analysis of how well it manages its material ESG risks (using the SASB framework). Combining both aspects into a single, forward-looking company rating from 1 ( strong) to 5 (weak), reflects our conviction that prudent management of financial and ESG factors is important to a company’s ability to create long-term, sustainable value. Utilising data science and cloud computing, the RI analytics and ratings add to our fundamental research, providing our global investment teams with a more robust and evidence based RI capability, with coverage across 5,500 global listed equities.

ESG integration is an ongoing strategic effort, and investment teams will vary in their level of ESG integration. We are presently working to apply these principles into all of Invesco’s assets under management. As noted earlier, there is little value in providing pre-packaged, one-size-fits-all strategies to ESG-focused investors. All are different, with differing time horizons, levels of risk tolerance, return expectations and commitment. Invesco has the depth of products and, combined with a deeply consultative approach, we believe is uniquely positioned to seek to deliver purposeful outcomes for nearly any investment objective.

ESG investing is a fundamental commitment at Invesco. We’re a trusted partner to our clients, both on ESG product strategies and as part of our mission to deliver an investment experience that helps people get more out of life. We adopt and implement ESG principles to align with our fiduciary responsibilities and have strengthened our position through industry advocacy, leadership and innovation.

The starting point for our company-level ESG research is the analysts and fund managers, who will look at a variety of factors. These will differ per asset class, sector, geography and company and will typically be one component of an overall investment view. Based on this initial view, where the fund managers and analysts wish for more detailed ESG information, our Global ESG team can provide proprietary analysis. Crucially, while there is global, centralized support, decisions are ultimately made by our investment managers and analysts – the individuals who know their asset classes and sectors best.

While our first socially responsible investment product was launched over 30 years ago, we became a signatory of the UN-backed Principles for Responsible Investment in 2013 and have since achieved an A+ in Strategy and Governance for three consecutive years. This rating demonstrates our extensive efforts in ESG integration, active ownership, investor collaboration and transparency. We’re also disclosers to and investor member of the Carbon Disclosure Project, and in 2019 we became supporters of the Task Force for Climate-related Financial Disclosure (TCFD) with our inaugural Climate Change report published in Q2 2020.

M&G Investments is a global asset manager with a long history investing and innovating across both public and private markets. We’re part of M&G plc, an international savings and investment business with the ambition to deliver long term value for our investors while working together to create a more positive future. We recognise that clients are increasingly looking to align their investments with their environmental and social values. This is why our investment decisions are underpinned by our commitment to investing responsibly. Considering material environmental, social and governance (ESG) factors is an integral part of our investment approach. Combining market-leading research with our own proprietary data, we believe this helps us make more informed investment decisions. We also pro-actively engage directly with the businesses we invest in to help drive positive change. M&G has committed to reducing our own carbon emissions to net-zero by 2030 and to achieving carbon net-zero investment portfolios by 2050.

VLK IM is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board. To implement our vision we engage with our investees on strategic, financial and environmental, social, governance (ESG) topics. Our long-term investment worldview combined with a thorough analysis and experienced ESG team allow us to leverage our fully integrated active ownership approach as a means to consistently encourage positive change. Through this process of integrating material governance and sustainability factors in our investment decisions and constructive engagement we’re able to contribute to the development of principles and standards of corporate responsibility at the companies that we invest in.

Our responsible investment activities fall under the following four categories:

• Exclusion and Avoidance – Those companies we don’t invest in
• ESG Integration – Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes
• Active Ownership – Being responsible stewards of our clients’ capital and using our influence to improve corporate behaviour on specific ESG issues
• Positive impact – Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals