Authentic ESG integration helps us to make better investment decisions for our clients. We believe that by assessing our asset managers’ ESG integration approaches, engaging with them to improve their practices and by the deployment of capital into impactful opportunities, we can help to generate better long-term investment outcomes for our clients and have a positive impact on society and the environment.
Partners Capital Sustainability Beliefs
Sustainability starts with the principles we embrace in managing our own firm
- Operational carbon net neutrality commitment in 2022
- Commitment to reduce travel, efficient energy usage and recycling
- Charitable giving and volunteering programme for environmental and social causes
Inclusive workplaces with diverse teams and perspectives make better decisions
- CEO Pledge signatory since 2020 to further advance diversity, equity and inclusion
- Key Initiatives include: 1) educating employees to build an inclusive workplace; 2) engagement with third-party networks to diversify workforce
- Focused effort to source diverse asset managers
Influence on asset managers behaviour represents our largest, leveraged impact
- Asset managers with whom we partner manage over $2T in assets, 40x the capital we oversee. Our beliefs are amplified through our partners
- Working with these asset managers to implement best practice ESG integration processes can create real impact on our society and environment
Helping our clients implement targeted, bespoke responsible investment policies
- Identify sectors, managers and companies capable of generating measurable impact
- Raised a dedicated vehicle to invest in private equity opportunities focusing on proven technological innovations and long-established businesses which are critical to the global energy transition to net zero carbon emissions
ESG and Impact Measurement is the key to a virtuous circle of adoption
- Built proprietary ESG and Impact measurement dashboard, which has evolved with more sophisticated measurement techniques.
- Publish ESG and Impact annual report
- Engage with asset managers to encourage greater transparency and consistency in ESG data
Collaboration with like-minded investors has the potential to catalyse change
Partners Capital is the nexus of a powerful ecosystem where advocacy for sustainability can drive meaningful change:
Clients: prestigious charitable educational institutions and influential philanthropic families
Shareholders: Sir Ronald Cohen offers us leading guidance on our sustainability and impact strategies
Asset Managers: partner with premier investment managers
Collaboration Groups: Institutional Investors Group on Climate Change and United Nations-supported Principles for Responsible Investment.
What is ESG?
To fully understand the issues at hand and discuss the state of ESG in today’s world, we must take a step back and start with the basics. Let’s start with the simple question: ‘What is ESG?’ ESG refers to Environmental, Social and Governance factors, which is then abbreviated as ‘ESG’. The term, however, comprises more than just three loosely defined themes. ESG is much more granular than these three themes – there is a multitude of “sub-themes” underneath each of the environmental, social and governance concepts, as shown in the categories here. This list is by no means exhaustive but it includes, in our view, the most referenced and essential ESG issues.
Our Policy includes five pillars:
We assess the ESG integration and stewardship approaches of the asset managers with whom we partner through our ongoing communications and monitoring which is augmented by our annual Asset Manager Survey.
We seek to constructively engage with our asset managers to ensure they are deploying best practice integration and stewardship approaches.
We seek to generate additional returns and impact by allocating capital to those managers who have gained investment insights through integrating material ESG considerations and through allocating to companies and sectors who are contributing to and benefiting from sustainability trends.
We prefer engagement over exclusions with a belief that seeking to change behaviour is a more powerful means to have impact than exclusions.
We collaborate with our clients, asset managers and leading capital owning institutions to support the acceptance and implementation of sustainable investing practices across the financial services industry.
Partners Capital’s Dual Role in Sustainable Investing
Engagement with Asset Managers and how they are assessed
Deployment of ESG and Impact Investment Strategy
The Sustainable Investing team, led by Dr. Michael Viehs, Global Head of Sustainable Investing, is responsible for developing and implementing Partners Capital’s approach to sustainable investing.
Currently, the team consists of five members who have a background in investing, research, client relationship management, ESG and sustainable investing.