Common QuestionS Relating To ESG and Responsible Investment
Fiduciary Duty and Investment Performance
If you are a South African pension fund, the answer is Yes. Regulation 28 of the South African Pension Funds Act No. 24 of 1956,
Global consensus has emerged that actively considering ESG is in line with fiduciary responsibility. According to the UNEPFI report Fiduciary Duty in the 21st Century
There is now convincing evidence that ESG factors can – and do – affect investment risks and returns across a range of asset classes. There
Terminology and Jargon. What are the definitions?
You are not alone. It is useful to understand that different terms have evolved in different contexts to help explain the same set of practices.
Although environmental, social and governance issues are often grouped under three separate headings, in reality they are closely connected and interdependent. Good governance provides the
No. RI is still sometimes confused with developmental investment in national priorities such as infrastructure, social housing and job creation. Responsible investment strategies might
Which ESG Strategies are Feasible For My Fund?
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.
With so many ESG products and options available from service providers, where do I start? Investment instruments focused on impact investing offer exciting prospects from
Most of my portfolio is in the SA listed markets which has a small investable universe where negative screening is not really an option. Does this mean I cannot invest responsibly?
No. Exposure to a small listed universe does not prevent responsible investment. Negative screening and exclusion are only a sub-set of the available tools for
This Guide does not make a distinction between defined benefit (DB) and defined contributions (DC) funds. The fundamental rationale for RI does not depend on
South Africa has a highly fragmented pension fund sector and more than 3,000 funds have an AUM of less than R1billion (approx. USD 80m). This
Asset owners should have the same fundamental perspective on engagement regardless of whether an active or passive strategy is in question. Even though passive investments