Partners Capital 2023-2024 Sustainable Investing Report

Amid a challenging macro-economic climate and swift monetary tightening, polarised debates on the role of ESG have continued. These debates, however, have had limited impact on both global sustainable investment flows and Partners Capital’s pragmatic, targeted and client specific approach to Sustainable Investing. The key areas of the 2023-2024 Sustainable Investing Report are:

• 2023 Asset Manager ESG Integration Survey: With 190 responding managers and a response rate of more than 98%, the sample of investigated asset managers is the largest we have ever had. The results show a positive trend in overall ESG integration approaches amongst our asset managers however we note that there is still considerable work to be done to move managers from policy setting to decisive action, in particular with respect to their approaches to climate change.

• Asset Manager Engagements: We engaged with 40 managers comprising c. $14B of overall AUM over the course of 2023. In these engagements, we addressed gaps in the managers’ ESG integration approaches using peer-to-peer comparisons to constructively help the managers improve their processes over time.

• Diversity, Equity, and Inclusion (DEI): We continued to cultivate and sustain our diverse workforce and inclusive work environment. We continue to focus our efforts on our three firm-wide objectives of ‘culture’, ‘talent’ and ‘leadership’. At the investment level, we approved 14 diverse funds / co-investments in 2023 and we are confident that the network of diverse managers we have built through our Diverse Manager Initiative will surface more diverse investment talent in the future.