By formalising an investment process in a policy, asset owners differentiate emotions from facts when making investment decisions, keeping a relentless focus on performing in line with their investment strategy in an evidence-based manner.
Asset owners, sitting atop the investment chain with long-term investment horizons, are ideally placed to drive responsible investment throughout the investment cycle.
This final chapter offers practical ideas for bringing ESG matters raised during the manager selection process together in order to facilitate ultimate decision making.
Asset owners and investment managers can easily search, group and request access to private Transparency Reports and Assessment Reports from other signatories via the web-based Data Portal platform.
A growing number of asset owners want to know how their assets are exposed to climate change related risks, and the role that they can play in an orderly transition to a lower carbon economy.
By implementing their commitments to responsible investment with sufficient scale and depth, asset owners can accelerate the development of responsible investment through the investment chain.
Steps to ensure that asset owners have the systems, policies, processes and accountabilities they need to ensure that their investment beliefs and commitments are reflected in their strategies, governance processes and contractual relationships with managers.
While corporate plans are legally distinct from their sponsors, plans and their beneficiaries can benefit from responsible investment in several ways.
The main drivers of signatory growth in OIC countries are the strong alignment of social objectives in responsible investment and Islamic finance, and the additional financial value of integrating environmental, social and governance (ESG) factors into investment processes – which can be combined with Sharia screening.