In the landscape of finance, the importance of incorporating environmental, social, and governance (ESG) considerations into investment strategies has grown markedly. Forward-thinking investors are increasingly recognising the need to realign their financial and physical investment portfolios with sustainable principles, reflecting a broader shift towards responsible investing.
Organisations now have a stakeholder and reputational duty to address pressing global challenges, including climate change and social inequality whist upholding high standards of governance and corporate responsibility, which have significant implications for long-term business sustainability. By integrating ESG principles, organisations can better manage reduce their environmental impact, enhance social responsibility, and strengthen corporate governance. ESG initiatives resonate with customers and employees who increasingly prioritise responsible, sustainable practices.
Clearly articulating an ESG and responsible investment policy that resonates with the core values and risk tolerance of your organisation is a crucial first step. Constructing a robust framework for effectively integrating ESG factors and addressing your specific ESG priorities is next. It is also necessary to be pragmatic about your policy’s objectives and the timescale over which you aim to achieve them.
Arlingclose ESG and Responsible Investment Service helps public sector authorities navigate the ESG complexities for their treasury financial investments while remaining prudent custodians of public monies. Our evaluation sheds light on your treasury investments’ ESG attributes, but also considers the management of credit and liquidity risks which are central to public sector treasury strategies and activity. The analysis provides an insight of your portfolio's alignment with your articulated criteria, helping pinpoint where investments currently deviate from it and where alternatives can help accomplish the objectives. This in turn assists with transitioning to a portfolio which balances financial imperatives – for example, regular income with low capital volatility and protection of capital – and the responsible investment goals.
For those who take Arlingclose’s thematic fund selection service, we advise on the selection of funds with one or more specific themes within the scope of the pre-determined ESG policy for financial assets, for example: climate change and transition, clean/renewable energy, sustainability, impact investing.
If you are interested in Arlingclose’s ESG service, please email info@arlingclose.com.
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