Defining best practice
How does your manager stack up?
We understand the expertise and attitude required to achieve outperformance and outcomes from ESG investing.
ESG cannot be ‘bolted on’ to an investment process or be the domain of one analyst in a team. It must be an area of expertise for all. Knowing how to gather, analyse and integrate sustainability data as an essential part of research is fundamental in forming a complete view of an asset’s long-term potential.
What defines a leading ESG investor?

Best-practice ESG
Best-practice ESG and stewardship integration
Uses third-party ratings only in the first stage of research
Proprietary, transparent ESG analysis tools enable asset managers to research and provide toolkits to help fund managers conduct their own fundamental company research
Minimum standards
Outsources research to third-party vendors
Uses mainstream ESG ratings and data, which are often one-dimensional and backward-looking
Best-practice ESG and stewardship integration
Performs in-house research on how the relevance of each sustainability factor influences a company’s performance
Assesses the materiality of each factor in order to focus on what is truly material
Minimum standards
Approaches ESG risks in a generic way
Fails to conduct further research in order to understand the relevance of each factor on an asset’s performance
Best-practice ESG and stewardship integration
Proactively engages with companies in the long-term interests of clients and their beneficiaries
Believes that effective stewardship lies at the heart of any long-term investment programme and integrates the full benefits of active ownership
Implements a comprehensive advocacy programme with legislators, regulators and industry bodies to seek progressive change in the capital markets
Minimum standards
Engages companies reactively in response to sustainability flashpoints or crises
Votes proxies in the wake of a corporate scandal but not to proactively seek positive change
Best-practicee ESG and stewardship integration
Beyond ESG and stewardship integration in investment processes, responsibility is embedded in the company’s philosophy and tone and reinforced by senior management
Significant resources are committed to developing, integrating and advancing expertise in investing sustainably
Minimum standards
Does not have the track record to truly claim a history of best-practice ESG integration
Claims to responsibility in annual reports might not be substantiated by the corporate culture or level of ESG and stewardship integration in investment processes
Best-practice ESG and stewardship integration
Track record of integrating ESG and stewardship ahead of requirements set by regulators
Contributing to trailblazing industry initiatives and policy formation championing sustainability in investment
Minimum standards
Integrates ESG in response to the introduction of regulations and stewardship codes
Best-practice ESG and stewardship integration
Customises ESG and stewardship integration to each investment strategy, resulting in diverse approaches to regions, sectors and portfolio construction
Emphasises stewardship to embed a forward-looking view in ESG analysis
Champions direct collaboration between in-house engagement experts and portfolio managers
Minimum standards
Limits consideration of ESG issues to a one-size-fits-all approach
Our Responsibility Office oversees and advances ESG and stewardship integration in all our investment strategies and reports directly to our CEO on the integrity of their approaches. This helps to ensure we focus on Sustainable Wealth Creation.
Sustainability in action
Looking for authenticity in investing sustainably? Examine our evidence.
Measurements and tools
What analytical tools and insights are needed to be a leading ESG investor?
Want to know more about our delivery of Sustainable Wealth Creation?