What is Coutts doing?
- Our investment process is aligned with our ESG principles. We also work with our stewardship provider EOS at Federated Hermes to vote as equity shareholders for improved sustainability and governance provisions. This applies to the majority of the companies in which we invest, which are held through Coutts ESG Insights Funds, Coutts Actively Managed UK Equity Fund and the Coutts Actively Managed US Equity Fund.
- Our goal is to make all our assets under management (AUM) net zero by 2050 in line with the Paris Agreement of 2015 which has a stated target of limiting global warming to 1.5 °C.
- We currently consider 89% of our AUM to be working toward net zero (Source: Coutts B Corp Impact Report July 2022).
- We aim to reduce the weighted average carbon intensity of our equity and corporate fixed income holdings by 50% by 2030.
- We aim to align 50% of holdings within our managed funds and core discretionary portfolios with a net zero pathway by 2025, increasing this to 70% by 2030.
- We also operate with an ESG Exclusions Policy above set thresholds. This applies to where we invest in shareholder equity through the Coutts ESG Insights Funds, Coutts Actively Managed UK Equity Fund and the Coutts Actively Managed US Equity Fund. We do not invest in certain business activities that we view as being unsustainable for example tar sands, thermal coal energy or thermal coal extraction.
- We support some small- and medium-sized enterprises in driving the transition to a sustainable economy through our Investment Opportunity Service and through our UK Enterprise Fund (in partnership with growth fund BGF).
- For businesses, our parent group NatWest have launched Carbon Planner to help companies evaluate and plan their carbon reduction goals.
As with all investments, we know assets supporting the global transition to net zero will be exposed to some volatility over time – something we saw in markets in 2022. However, as need for investing sustainably continues to grow, we believe a world moving towards net zero will reward investors supporting this transition.
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ESG Investing raises some particular issues you should consider, please see our Cautionary Note About Climate Related Data Metrics and Information.
[i] Coutts & Company signed the UN Principles on Responsible Investing on 16 October 2018
[ii] According to the PwC report ‘Exponential Expectations for ESG’ (2022)
[iii] According to the PwC Global Investor ESG Survey (2021)