Responsible
Investing.

Using money in a more positive way.

Responsible investing is about ‘Using money in a more positive way, by taking environmental, social and corporate governance (ESG) issues into account when making investment decisions.

What is ESG?

Increasing our consideration of environmental, social and governance (ESG) issues help us better assess a company’s long term risks, opportunities, and the consequences of their activities on the world.

Responsible investing is not new. The need to reduce waste, be more efficient, treat employees, customers and the wider community well have always been fundamental to good business practice.

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.

Environmental factors

Environmental factors look at a company’s relationship with the natural world and the effects of a changing world on a company.

WATER

All life depends upon the availability of suitable water. The impact of climate change pollutes oceans and reduces fresh water levels in large regions of the world, causing hardship to millions of people and stress to ecosystems.

BIODIVERSITY

The variety of plants and animals on Earth is known as biodiversity. Lower levels of variation can disrupt ecosystems, sometimes irreversibly. Human activity is reducing natural habitats, ecosystems and with it, levels of biodiversity.

CLIMATE CHANGE

Higher temperatures and extreme weather events can be predominately attributed to increased human activity. Greenhouse gases such as carbon dioxide, methane and nitrous oxide are emitted into the atmosphere which lead to climate change.

ENERGY EFFICIENCY

Energy efficiency is using less fuel to perform the same task with the aim of reducing waste. It brings the benefits of reducing greenhouse gas emissions, reducing energy costs, achieving a lower carbon footprint, and meeting environmental targets.

WASTE

Discarded materials produced by human activity can destroy habitats and cause harm to people, plants and animals. Reducing waste helps preserve the world’s scarce resources and promote a sustainable way of life.

Social factors

Social criteria look at a company’s relationship with people, including their treatment of employees and customers, how they manage their supply chain, and their involvement with local communities.

HUMAN RIGHTS

Protecting people’s rights, including their right to life, liberty and expression, freedom from slavery, persecution, or torture should be available to all, without discrimination.

COMMUNITY IMPACT

Businesses which are conscious of their local community’s needs are less likely to face resistance to change and more likely to reap rewards of advocacy, loyalty, and support.

EMPLOYEE WELL-BEING

Inclusion and diversity, flexible working, appropriate remuneration, and employee benefits can drive increased loyalty and retention, which translates into long term business success.

SUPPLY CHAIN MANAGEMENT

Meeting appropriate social standards for human rights, employee wellbeing, and product quality are common criteria required by core suppliers.

Governance factors

Governance considers how businesses are managed and overseen, including balancing stakeholders’ needs alongside a culture promoting strength and long term prosperity without excessive risk taking.

BOARD DIVERSITY AND INDEPENDENCE

Businesses promoting a clear, balanced, and understandable assessment of their position and prospect benefit from higher confidence levels from stakeholders.

EXECUTIVE PAY

Ensuring the best value for money is gained for senior company leaders setting and leading business strategy. Direction and resulting performance is a key interaction between company boards and company shareholders.

REPORTING & TRANSPARENCY