RI and ESG integration does not need to be complicated. Trustees also do not need to become experts on ESG matters or ESG investment strategies.
Your approach should fit the size and nature of your fund.
The following steps go a long way to fulfilling your responsibility:
- Set out your fund’s ESG beliefs and goals in the Investment Policy Statement include objectives and targets where available.
- Select service providers, including fund managers, that have ESG capabilities.
- Monitor the implementation of the RI mandates by the asset managers.
Your most important role as a fund is to demand innovation from asset managers to help you achieve your ESG goals. By doing so, you will help drive better product offerings to the market. Better products will yield better returns.
By implementing their commitments to responsible investment, asset owners can accelerate the development of responsible investment through the investment chain.