Investments | 08 November 2022

Coutts outperforms worldwide peers in UN's Responsible Investing assessment

Coutts identified as a leading steward of responsible investing globally.

Coutts has outperformed peers in every category in the latest UN-backed Principles of Responsible Investment (PRI) assessment. The assessment reviewed all 2,791 PRI signatories which consist of asset managers, wealth managers and asset owners globally. And it clearly labelled Coutts as an industry leader.

 

A leading approach to responsible investing

Our investment and stewardship policy, which details our approach to integrating environmental, social and governance (ESG) principles into our investment process, was given a score of 98% by the PRI.

Leslie Gent, responsible investing lead at Coutts, noted that such a high score is clear testament to our efforts to consistently uphold the highest standards across our investment process.

“We’re also pleased to see an increase on previous scores, which illustrates that we’re investing energy in the right places to improve,” she added.

There’s an old saying, “retirement is wonderful if you have two essentials – much to live on and much to live for.” Having worked hard to build your wealth, it would be remiss not to make sure you and your family can make the most of it as time goes on.Stagflation became financially synonymous with the difficulties the UK and other economies faced in the 1970s. The oil producing organisation OPEC embargoed oil exports to many western nations, pushing up oil and energy prices dramatically. The rise in the cost of living, fuelled in part by wage price spirals, coincided with stagnant economic growth, and unemployment was high while things got more expensive. This resulted in stagflation.

Although we currently have an energy shock, especially in Europe, as a result of the Russian invasion of Ukraine, the main driver of today’s inflation pressures was the pandemic. It led to a large demand for goods when strained and locked-down supply chains couldn’t cope. 

We are particularly pleased to have scored so highly because it validates our focus on creating long-term value for clients, which can then lead to sustainable benefits for our economy, environment, and society.

Another example of our leadership in investing responsibly is our acceptance into the UK Stewardship Code. The code is set by the UK’s Financial Reporting Council (FRC) and outlines their expectations on how British asset managers, wealth managers and pension schemes should invest to create sustainable, long-term value for their clients.

Acceptance into the UK Stewardship Code isn’t guaranteed but shows that the FRC is satisfied with the level of transparency and progress we demonstrate on responsible investing, as well as how we work with the companies we invest in to encourage sustainable growth.

Leslie said, “It’s important to us to get our responsible investing approach validated by external bodies such as the PRI and the FRC, because it shows that we’re putting our commitments into action and can demonstrate to our clients that we’re not making empty promises.”

Source: UN PRI/Coutts (The peer group includes all 2,791 PRI signatories who submitted and were eligible to report on the module. This includes those who were eligible to report but were penalised for no ESG activity. Medians for modules are calculated as the 50th percentile.)

While we are delighted to have had such a strong affirmation of our process, our work to provide both profit and purpose will keep developing. We are always evolving to improve our responsible investing approach. For example:

  • last year we strengthened our ESG due diligence process and our voting and engagement activity, and now vote and engage directly on almost half of our assets under management.
  • This year we have set out how we will achieve net zero emissions across our investment products by 2050. By building this into our assessment we can reduce the climate risk that our clients are exposed to in their funds and portfolios.
  • How our clients benefit

    We are particularly pleased to have scored so highly because it validates our focus on creating long-term value for clients, which can then lead to sustainable benefits for our economy, environment, and society.

    Another example of our leadership in investing responsibly is our acceptance into the UK Stewardship Code. The code is set by the UK’s Financial Reporting Council (FRC) and outlines their expectations on how British asset managers, wealth managers and pension schemes should invest to create sustainable, long-term value for their clients.

    Acceptance into the UK Stewardship Code isn’t guaranteed but shows that the FRC is satisfied with the level of transparency and progress we demonstrate on responsible investing, as well as how we work with the companies we invest in to encourage sustainable growth.

    Leslie said, “It’s important to us to get our responsible investing approach validated by external bodies such as the PRI and the FRC, because it shows that we’re putting our commitments into action and can demonstrate to our clients that we’re not making empty promises.”

  • How we scored

    Source: UN PRI/Coutts (The peer group includes all 2,791 PRI signatories who submitted and were eligible to report on the module. This includes those who were eligible to report but were penalised for no ESG activity. Medians for modules are calculated as the 50th percentile.)

  • Our work is ongoing

    While we are delighted to have had such a strong affirmation of our process, our work to provide both profit and purpose will keep developing. We are always evolving to improve our responsible investing approach. For example:

    • last year we strengthened our ESG due diligence process and our voting and engagement activity, and now vote and engage directly on almost half of our assets under management.
    • This year we have set out how we will achieve net zero emissions across our investment products by 2050. By building this into our assessment we can reduce the climate risk that our clients are exposed to in their funds and portfolios.

What is the UN PRI?

The United Nations Principles for Responsible Investing is the largest global reporting project on responsible investment. It was developed with investors, for investors and requires signatories to report on their responsible investment activities annually for independent assessment by the PRI.

It does not operate for its own profit and, while it engages with global policymakers, it is not associated with any government. It is supported by, but not part of, the United Nations.

The value of investments, and the income from them, can fall as well as rise and you may not get back what you put in. Past performance should not be taken as a guide to future performance. You should continue to hold cash for your short-term needs.

We may withdraw our pensions cash offer any time before 11 November 2022. If you meet the eligibility criteria, the cash reward will be paid no later than 31 May 2023. Terms and conditions apply.  There’s an old saying, “retirement is wonderful if you have two essentials – much to live on and much to live for.” Having worked hard to build your wealth, it would be remiss not to make sure you and your family can make the most of it as time goes on.Stagflation became financially synonymous with the difficulties the UK and other economies faced in the 1970s. The oil producing organisation OPEC embargoed oil exports to many western nations, pushing up oil and energy prices dramatically. The rise in the cost of living, fuelled in part by wage price spirals, coincided with stagnant economic growth, and unemployment was high while things got more expensive. This resulted in stagflation.

Although we currently have an energy shock, especially in Europe, as a result of the Russian invasion of Ukraine, the main driver of today’s inflation pressures was the pandemic. It led to a large demand for goods when strained and locked-down supply chains couldn’t cope.