A closer look at integration
Increasingly, responsible investment providers seek to distinguish themselves by advocating an 'integrated' approach. We urge investment professionals to look closely at how this is done. For example, investment managers might influence the engagement process, but without using engagement feedback in making their investment decisions. At The Co–operative Asset Management, we see this approach as a one–way street.
Genuinely integrating financial analysis, engagement, and social, ethical and environmental issues – throughout the investment process – leads to a more robust, informed view of a company. And ultimately, we believe, to superior investment decision-making.
At The Co–operative Asset Management, integration means creating a virtuous circle:
Engagement In action
In 2007, Co-operative Asset Management published a report examining the social and environmental impacts and risks associated with the current growth in the biofuels industry, covering issues such as emissions, land use and labour rights. It made recommendations on how different companies can manage these risks. Copies were sent to a range of stakeholders, including to 66 investee companies in the oil, food, waste, chemical and transport sectors. We received responses from 15 investee companies and held face–to–face meetings with a further 9. We found that respondents were making some progress towards a sustainable model. But we must also infer that the 'silent majority' have a lot of catching up to do.
- Responsible investing – the opportunity for investment professionals
- Know your client's values
- Approaches to responsible investing
- Ethical issues at a glance
- Common concerns
- How to evaluate funds
- A closer look at engagement
- A closer look at integration
- How The Co-operative Asset Management can help you
