Aberdeen Standard Investments - 17 steps to a better future - YouTube

To seek the right long term outcomes for clients

we allocate our clients capital to companies that we believe will be successful in the future.

It's our belief that businesses that commit to sustainable practices

and high standards of governance will enjoy a competitive advantage over the long term.

At Aberdeen Standard Investments, our goal is to invest for a better future.

Making a difference to the lives of our clients, our people and our shareholders.

To that end, we have been incorporating 'Environmental, Social & Governance', or 'ESG' considerations

in to our investment processes for over twenty five years.

As part of this, we're committed to helping the United Nations achieve its vitally important Sustainable Development Goals.

'Environmental, Social and Governance' is deeply embedded within all of our investment processes

for the companies in which we invest or whose bonds we buy.

As active stewards of our client's money, we believe it's our duty to help them achieve their financial goals

and a big part of this is to make sure we engage frequently with the boards of directors and management teams

to inform our investment decisions.

We also seek to influence those companies in a positive way, to the benefit of all stakeholders.

We adopt a similar approach when we invest in physical assets too, real estate is a good example.

This accounts for around forty percent of energy use globally.

So, how we manage real estate has an important role to play in mitigating the environmental impact of our buildings.

This includes cutting greenhouse gas emissions and working with tenants to improve energy and water efficiency.

Our analysts really work to understand the companies in which we invest.

For example, where companies are heavily dependant on carbon-intensive assets

we need to know that they are taking in to account all of the risks around climate change and the energy transition.

Where a companies principle asset is its people, we ask things like 'how are they treating them'.

Our ultimate goal is to invest in ambitious companies, that do the right thing by their employee's, the environment, customers and their investors.

There's a wide range of sustainable investment options that can help clients achieve their goals.

This includes investing in an equity or bond fund that avoids companies in certain industries

such as tobacco and weapons manufacture.

Funds can also exclude businesses that don't perform well, in areas of environmental, social or corporate responsibility

and this can combine with engagement strategies to generate, what we call, 'Sustainable and Responsible Investment Fund Options'.

Another solution is impact investing, which refers to investments made in to companies, organisations and funds

that aim to generate not just good financial return, but also immeasurable beneficial outcome in a social or environmental context.

There are many ways to define and measure social or environmental impact.

The goals set out by the United Nations are increasingly employed to identify these most pressing global issues.

Our commitment to 'ESG' doesn't end once we invest in a company or buy an asset

on a regular basis, we actively engage with the investments we've made

to learn more about the long term prospects and allow us to encourage adoption of best practice.

One common thing we discuss is gender diversity.

This ties in directly with the UN's goal of achiveing gender equality and empowering all women and girls.

Which we agree is a nesassary foundation for a peaceful, prosperous and sustainable world.

This diversity can improve the decision making and overall performance

and can make a big difference to employee wellbeing

the talent they can attract and the ability to retain that talent.

Asset managers are able to harness the power of impact opportunities across asset classes

Through listed equity and credit funds, or through private market strategies and direct investment.

These strategies and funds can target a variety of opportunities and include focus portfolios which seek to address one issue.

One such portfolio we've launched is dedicated to investments promoting fair employment opportuinities and job creation.

Others are broader in their impact focus, like our global impact portfolio

targeting a range of positive social and environmental outcomes.

Using the power of capital, we believe investors can bring better health and education to millions

help restore the planets ecological balance, build inclusive societies and so much more.

The world faces numerous challenges, from climate change and pollution, to inequality and poverty

and asset managers can play a vital role in helping to address these issues.

That is why Aberdeen Standard Investments aims to be a global in 'ESG' investment.

In doing so, we believe that we can not only protect and enhance the value of our clients investments

but can also help create a fairer and more sustainable world.