Good investors have long known that there is more that drives investment returns that just what is published in financial reports. They also understand that companies or assets won’t thrive ignoring the important issues: environment (pollution, climate change, water and other resources scarcity), society (local communities, employees, health and safety), corporate governance and ethical behaviour (prudent management, business ethics, strong boards, appropriate executive pay).
In formal terms, responsible investment is a process that takes into account environmental, social, governance (ESG) and ethical issues into the investment process of research, analysis, selection and monitoring of investments. At RIAA we see an array of methods that investors use to manage these extra-financial risks – excluding companies involved in controversial industries; supporting the most sustainable companies; taking a sharp look at ESG risks and opportunities; and using the power of company ownership to engage with their boards and seek changes in corporate behaviours.
This diversity of approach is a plus for the investors who can now find options that match their own values, concerns, risk profile and life stage. Take a tour of this site to see what you find.