Making decisions with greater purpose helps the world become a better place. Let your values guide the way you invest.
The rise of ESG (environmental, social and governance) and responsible investments has dramatically altered the landscape around us. There are now more than 1,800 laws and policies in over 180 countries relating to climate change alone. Momentum is set to continue so awareness of the latest developments in ESG and responsible investing is key to building a portfolio that is both well positioned for the future and reflects your values.
GCG Investment has long been aware of the benefits of socially responsible investing and ESG investing. We’ve always looked to incorporate clients’ individual values into how we invest for them.
As long-term stewards of your assets, the ESG and sustainability credentials of companies remain an important consideration within our process. This is why we welcome the greater focus on helping company management and investors make appropriate decisions, driven by data.
We routinely consider how this shifting landscape impacts companies we invest in and when and how we need to engage with boards. This ensures that companies are being managed with the long-term prospects of all stakeholders in mind.
How we monitor ESG factors
- Environmental: we analyse the challenges or opportunities faced by companies from their exposure to environmental risk factors (both physical and transitional, including adoption of new technologies or new regulations), dependency on natural capital or impact on the environment. These span climate-related risks, resource management (water, timber, cotton etc), waste management, pollution, land-use and many more
- Social: we monitor the social policies and practices of companies to ensure that all internal and external stakeholders are being treated fairly. Social issues include, but are not limited to, labour management, supply chains, health and safety, product safety and community relations
- Governance: we consider factors that measure the quality and robustness of a company’s internal structure and management behaviours and practices. Issues such as executive pay, bribery, board structure, diversity and tax strategy are assessed to ensure the company is well-managed, with decent risk controls and with all stakeholders in mind