The Radiant ESG Manifesto
It’s time for talk to turn into tangible action…
It is evident that significant change is upon us… the industry, the markets, the world at large. It is real and necessary, and handled the right way, can be channeled positively for a brighter future for all. While change can be unsettling, we choose to focus on the positive—with change comes opportunity, new ways of thinking and acting.
We encourage it, embrace it, advocate for it.
The concepts embedded in ESG are arguably the most important challenges facing corporate behavior and capitalism in our lifetime. Changing demographics, shareholder expectations, consumer preferences and regulatory pressures motivate and amplify Environmental, Social, and Governance (ESG) influences. How we evolve into an economic system that embraces all company stakeholders and respects the finite and vulnerable ecosystem we depend on will determine the business – and investment – winners and losers of the future.
As investors, ESG information provides the bridge between Today and Tomorrow—we are better (and more optimistic) investors for having carefully considered the forces of change that are at work, in companies and throughout the world.
Changes related to Diversity and Inclusion, as part of the larger ESG framework, are at the fore now. A greater sensitivity toward equality and fairness has been growing over recent years, but the demand for a more inclusive society is hitting a crescendo.
We cannot hide from the fact that there is a persistent lack of diversity within financial services. As leaders in the asset management industry, we see all too acutely how much more room there is for experienced women, people of color and other minorities to make a difference in broadening the decision making in our industry.
We staunchly advocate for greater diversity within and across our industry because we see over and over that diverse groups, represented by people with different perspectives, backgrounds and experiences reach decisions that more broadly consider and examine all sides of an issue.
There is a significant and still growing body of research that links diversity to improved profitability, better employee retention, and lower investment risk. But the concepts of diversity and inclusion are about so much more than better performing organizations – they lead to better outcomes for people, society and the planet
Capital markets participants must transition from passively abiding change to playing a lead role in driving purposeful outcomes that serve society, and developing enduring businesses that thrive by meeting the needs of all stakeholders.
To act as true stewards of investment capital, the asset management industry needs to leverage the economic power of ESG information to design portfolios with purpose, emphasize the importance of engagement in making investments matter, and promote the value of cultural resiliency and sustainable leadership. It’s time to encourage and adopt a more inclusive mindset — serving all of our constituents.
To do this, welcoming historically underrepresented groups is not only a benefit, but a necessity if we are to successfully navigate the changing landscape. Those who do not embrace that mentality will be at a long-term disadvantage.
THE BRIGHT FUTURE
To motivate and compel asset owners to understand and act on their capacity to make a meaningful difference in climate change, social practices, governance issues, and evolving the important role our industry plays in society at large.
To create the asset management firm of the future, embracing ESG considerations as a necessity in building sustainable investment portfolios; at the same time, carving a path for women and minorities in this industry for generations to come.
To achieve superior returns for our clients by investing in companies that make the world a better place. To achieve this mission we believe that we must be a company that makes the world a better place. For our efforts to truly have an impact, we must act on our fundamental belief that diversity and inclusion makes us stronger, and thus creativity, independent expression and diverse opinions are not only accepted but demanded.
For the past 20 years, we have enjoyed career paths of increasing responsibility culminating in the business and investment leadership of one of the industry’s most recognized systematic asset management firms. Investing on behalf of the world’s largest asset owners, we have used ESG information to develop a more robust view of the threats and opportunities that companies face in the midst of profound change. We intend to take the best of the DNA of our previous experience to deploy investment strategies that will not only beat the markets, but invest capital in companies that create the conditions for a better future. We hope you will join us on our quest.