Responsible Investment Policy Framework
Historically Responsible Investment (RI) was associated with value or norms-based security exclusions, but as awareness around RI issues grows globally, investors now have different motives for considering RI in the investment process including the financial materiality of RI-related risks. This has led to spectrum of approaches to RI.
This memo contains discussion on the following areas of building and documenting an RI Approach:
- Foundations of an RI Approach: Key considerations including the key drivers, the spectrum of approaches, resource requirements, data, and the impact of RI on products.
- Building Blocks of an RI Approach, including:
- Responsible Integration
- Responsible Asset Selection: Exclusions, Inclusions, and Impact
- Responsible Ownership: Voting, Engagement, and Activism
- Responsible Corporate and Market Citizenship: Organisational Initiatives, Good Market
- Citizenship, and Carbon Offset and Hedging
Section 5 consolidates this into a framework for disclosures within an RI Policy.