Responsible Investing
Responsible investing is about using money as a force for good.
When you invest with us, you’re helping to create a better future for all, by influencing the strategy and direction of companies to evolve into better versions of themselves.
When our fund managers put responsible investing into practice, they focus on three factors: environmental, social, and corporate governance (ESG). Put simply, people, planet, and fair play. They use these to assess how companies behave and manage their impact on the world.
When putting responsible investing into practice, fund managers – the people that manage our funds – focus on three factors: environmental, social and corporate governance (ESG). Put simply, people, planet and fair play. These factors are used to assess how companies behave and manage their impact on the world.
How does SJP integrate ESG?
SJP monitor their fund managers specifically on responsible investing and the integration of ESG factors into their decision-making. Through in-house analysts, they engage in frequent dialogue with fund managers on decisions they’ve made and how ESG factors were considered. In 2020, they set a minimum requirement that all of their fund managers must be signatories of the United Nations-supported Principles for Responsible Investment (PRI). The PRI is the industry standard for assessing a firm’s overall approach to responsible investment, and signatories are assessed and scored on their approach.
A world worth living in
Becoming financially secure is a dream for many of us. But it’s only worthwhile if we have a healthy and sustainable world in which to enjoy that security. Climate change is one of the biggest issues facing society today by far. Tackling this requires action from all sectors and industries, as well as governments, international bodies, and communities. As one of the UK's largest wealth managers, we want our responsibilities and standards to be reflected by our external fund managers.
SJP joined the Net Zero Asset Owner Alliance (NZAOA) in 2020, making a public commitment that all their investment portfolios will be carbon neutral by 2050. The NZAOA uses the collective voice of more than $7 trillion of assets to encourage large companies to reduce their carbon emissions.
To ensure company stakeholders – customers, communities, shareholders, and suppliers – are aware of climate-related challenges, firms are being encouraged to disclose this. In 2015 the Financial Stability Board established The Task Force for Climate-related Financial Disclosures (TCFD) to provide a framework for firms to follow when disclosing their climate-related risks. We became signatories of TCFD in 2019 and earlier this year we produced our own TCFD report.
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.
More information
St. James's Place is a signatory to the United Nations-supported Principles for Responsible Investing (PRI). Find out more and see how our Portfolios are managed in accordance with the PRI.
Got a question?
Do get in touch with us if you need a bit more information about these services, or any of our other financial planning advice.
