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HOW WE INVEST RESPONSIBLY

We aim to help you make the most of your wealth without harming the environment and society over time. Here’s how we do it.

 

876511502

 

HOW WE INVEST RESPONSIBLY

We aim to help you make the most of your wealth without harming the environment and society over time. Here’s how we do it.

 

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SUSTAINABLE STOCKS
 

We assess all sustainability-related risks and opportunities a company presents before we decide whether or not to invest in it. Every single time.

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FUTURE-LOOKING FUNDS
 

Funds managed by third parties are a big part of our client portfolios. When selecting them, we assess how closely their responsible investing approach matches our own.

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ONGOING MONITORING
 

We keep a close eye on the companies and funds in our client portfolios through regular reports and annual reviews. 

 

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sustainable STOCKS
 

We assess all sustainability-related risks and opportunities a company presents before we decide whether or not to invest in it. Every single time.
 

1282658135


FUTURE-LOOKING FUNDS
 

Funds managed by third parties are a big part of our client portfolios. When selecting them, we assess how closely their responsible investing approach matches our own.
 

160192483


ONGOING MONITORING
 

We keep a close eye on the companies and funds in our client portfolios through regular reports and annual reviews. 
 

OUR PHILOSOPHY

For us, sustainability is about achieving today’s goals without compromising the ability of future generations to do the same.
 

Responsible investing is one of three pillars that underpin our entire process for deciding where to invest your money – along with managing risk and managing costs.

We believe companies that look to protect the future have greater potential to become more profitable in the long term.

WORKING WITH THE BEST IN THE BUSINESS

We understand that sustainability is a shared responsibility.

This is why we work with the world’s leading ESG groups to help improve the world we live in.

 

  • Who are they?

    A UN-backed initiative working to create a sustainable financial system and understand the investment implications of ESG factors. The PRI supports an international network of investors who have signed up to the scheme.
     

    How we work together

    Having signed up to the scheme, we are publicly showing our commitment to responsible investing. We report on how we incorporate factors such as environmental and social issues into our investment process every year, and this is independently evaluated by the PRI. This means we can be confident that our responsible investment practices are market-leading. At the same time, we attend the PRI’s industry events to deepen our expertise and work with other, like-minded investors to share best practice.

  • Who are they?

    A global body with the world’s biggest corporate greenhouse gas emitters firmly in its sights. It works with investors to ensure the relevant companies take appropriate action to tackle climate change.

     

    How we work together

    As an investor that has signed up to the initiative, Coutts actively engages with companies we invest in to ensure they’re tackling climate change. For example, working alongside a large US pension fund, we’re liaising with a leading aerospace company to ensure they produce a plan of action on climate change and means to report progress.

  • Who are they?

    A stewardship service provider enabling institutional investors to have a more open conversation with companies on ESG issues. They say this approach is essential to building a global financial system that provides better long-term returns for clients, and a more sustainable society.

     

    How we work together

    EOS is our voting and engagement partner. This means that, where we invest directly in companies, they vote at annual shareholder meetings in line with our responsible investing policy. They will also engage with these companies on our behalf to drive long-lasting change that delivers financial and social value.

  • What is it?

    Launched by the Financial Reporting Council (FRC), it’s a set of standards aimed at UK institutional investors. The code focuses on the responsible allocation, management and oversight of capital, with the goal of creating sustainable benefits for the economy, environment and society.
     

    How we work together

    The UK Stewardship Code guides the way we manage wealth, ensuring that our actions can deliver sustainable benefits to our clients and society. We publish our compliance statement to the code which sets out all the ways we act as a proper steward. This ranges from voting and engaging with the companies we invest in, to correctly managing conflicts of interest and incorporating ESG factors into our investment decisions.

  • What is it?


    The Task Force on Climate-Related Financial Disclosures (TCFD) is one of the most widely used and recognised sets of guidance for companies when reporting their climate-related risks. Its goal is to improve transparency around how companies and financial institutions, like Coutts, consider the risks and opportunities associated with climate change.

     

    How we work together

    We use the TCFD voluntary disclosures when reporting our own climate-related risks, because we are committed to communicating our progress on tackling climate change as transparently as possible. We see two great benefits of using the TCFD disclosures. Firstly, it means that institutions worldwide are reporting on the risks related to climate change in a similar way, making it easier to compare and learn from each other. And secondly, reporting on climate change helps us identify our strengths and informs the way we develop our investment strategy in the future.
     

    TCFD statement

  • Who are they?

    The Net Zero Asset Managers Initiative is an international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.
     

    How we work together

    Coutts joined the initiative in April 2021 and joins asset managers worldwide in the race to net zero. By working with other players in the industry we are able to share knowledge, collaborate and speed up the transition to a net zero economy. As a member of the Net Zero Asset Managers initiative we are not only committing to net zero investments by 2050, we also commit to using our voice with our partners and within our sphere of influence to encourage others to set net zero commitments.  

  • Who are they?

    IIGCC is a leading global investor membership body and the largest one focusing specifically on climate change. Their members, mainly asset owners and asset managers, include many of the biggest names in the sector, alongside more specialist investors and select financial service providers.
     

    How we work together

    As part of the IIGCC, Coutts is committed to working actively with other investors to tackle climate change. We recognise that this is the “decade of action”, and are actively taking part in working groups, events and consultations that encourage the whole asset management industry to drive real progress on climate change by 2030 – taking us further towards a net zero and sustainable future.

What is ESG?

Key responsible investing terms and what they mean.

 

SUSTAINABILITY

This means achieving today's goals without compromising the ability of future generations to do the same. In an investing context, it means striving to provide financial returns without negatively impacting the environment and society over the long term.

 

ESG

Stands for Environmental, Social and Governance - the three key categories that investors use to classify the topics they address to create a sustainable future. 

 

SOCIAL

The impact a company has on society. This includes how it treats staff, making sure supply chains avoid unethical labour practices, and the health impact of its products.
 

CARBON INTENSITY

Standard measure of how much carbon a company emits per million dollars of revenue. 
 

CLIMATE ACTION 100+

A global body, run by five leading environmental organisations, with the world's biggest corporate greenhouse gas emitters firmly in its sights. It works with investors to ensure the relevant companies take appropriate action to tackle climate change.
 

THE UK STEWARDSHIP CODE

Created by the Financial Reporting Council, the code aims to enhance engagement between investors and companies.
 

 

Environmental

The impact a company has on the environment. This includes carbon emissions, deforestation, water usage and packaging. 
 

GOVERNANCE

The impact a company has on the business environment. This includes its accounting practices, how it negotiates with suppliers, its attitude to diversity and how it contributes to a fair and stable market environment. 
 

LOW CARBON ECONOMY

An economy that sees the energy businesses need to operate generated from renewable, sustainable sources such as wind, water and solar power. 
 

THE PARIS AGREEMENT

A United Nations agreement - also known as COP 21 - which sets out an action plan to limit global warming to well below 2 degrees Celsius.
 

PRINCIPLES FOR RESPONSIBLE INVESTMENT (PRI)

The world's leading organisation on responsible investing, the PRI encourages investors to use responsible investment to enhance returns and better manage risks. It is an independent body that's supported by the United Nations.

 

 


When investing, the value of your investments, and the income you receive from them, can go down as well as up and you may not get back as much as you invested.
 

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