We know that all companies have an impact on people and the planet – their operations and products have ripple effects on the economies, societies and the environment in which they work.
This means that all investments have an impact too. Understanding the nature and scale of these impacts is crucial. We believe that companies will increasingly be valued on the basis of their “impact-adjusted profits.”
Managing financial risk is not our only motive to understanding impact. We believe that we can effect real change in the world by the way that we allocate capital, and that we have a responsibility to do so. We can do this not only by providing capital to fund sustainable investments but also, importantly, through using our influence. Active ownership is core to our sustainable investment policy, ensuring we engage with companies and the managers we invest with on issues that our clients care about.
This report explores the impact of the investments within our flagship sustainable portfolios, focusing on five key areas: health and well-being, inclusion, climate change, responsible consumption and sustainable infrastructure. It also looks at our engagement with companies and fund managers and shows how we map our portfolio against internationally-recognised impact and sustainability frameworks – the Impact Management Project and the UN Sustainable Development Goals.
These tools provide us with the ability to help you align your investments with your values.
Source: Cazenove Capital