At CCLA, we believe that the primary role of sustainable investment is to drive positive change.
We believe that this is best achieved by pushing companies to do more to address the major challenges facing us today. From climate-change, nutrition and human rights to biodiversity, investors can make their voice heard and can make change happen.
Our philosophy is Good Investment. So, what is Good Investment?
We aim to manage our clients’ investments in a way that aligns with their values and, for our not-for profit clients, furthers their mission. To do this we consider environmental, social and governance (ESG) factors in our listed equity investment process and go beyond the boundaries of traditional investor engagement to drive change.
This is summarised in our three guiding principles:
We integrate ESG factors into our listed equity investment process with the aim of better understanding financial risks that the lens of conventional financial analysis may miss. Businesses involved in the most unsustainable activities are likely, over time, to be negatively impacted.
Before making an investment, we look at companies’ corporate governance, how they approach their most financially material sustainability risks, and whether they have been involved in any related controversies.
Once an investment has been made, we routinely monitor companies’ ESG characteristics to ensure that standards do not slip.
Principles for Responsible Investment
The Principles for Responsible Investment (PRI) is the world’s leading proponent of responsible investment, supported by the United Nations. The PRI evaluates signatories on how well they incorporate ESG factors into investment decisions.
Read our summary scorecard here.
Read our latest PRI assessment here.
The UK Stewardship Code
CCLA has been accepted as a signatory to the Financial Reporting Council’s UK Stewardship Code 2020. The code sets out 12 principles which aim to set high stewardship standards for those investing money on behalf of UK savers.
Read our response to the code here.
