We believe that environmental, social and governance (ESG) factors must be considered across asset classes. Incorporating ESG factors throughout the investment process helps us to better manage risk for our clients and contributes to long term performance. We also support initiatives that seek improved corporate disclosure, which in turn empower investors to make more effective evaluations of risk and return.
We consider ESG factors alongside other factors when making investment decisions because they can affect risk and return. For example, we can evaluate how our external fund managers have integrated ESG into their management processes. In our direct investments, including infrastructure and real estate, ESG factors are evaluated, where applicable, in the due-diligence process and monitored over the life of the investments.