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Further information about Responsible Investing at Coutts

This page is designed to help you better understand the initiatives we are part of, and what the responsible investing terms mean. 
 

SUPPORTING GLOBAL INITIATIVES

We understand that acting responsibly is a collective ambition or goal, and this is why we work with some of the world's leading investor initiatives.

  • UN PRINCIPLES FOR RESPONSIBLE INVESTMENT (PRI)

    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

    Our adoption of these principles underlines our commitment to responsible investing. Our public reports on how we seek to better the environment and society through our investments are independently evaluated by the PRI. We also deepen and share experience and best practices at industry events like those organised by the PRI.

  • CLIMATE ACTION 100+

    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, investee company engagement is a core part of our work to ensure they’re tackling climate change.

  • UK STEWARDSHIP CODE (FRC)

    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. Our compliance statement incorporates the code and sets out all the ways we act as a steward for our clients wealth. This ranges from voting and engaging with the companies we invest in, to correctly managing conflicts of interest and incorporating Environmental, Social, and Governance (ESG) factors into our investment decisions. See the voting and engagement section on our Disclosures page for more information.

  • TCFD

    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 disclosures when reporting our own climate-related risks and 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.

    Our current TCFD statement can be found on our Disclosures page.

  • NET ZERO ASSET MANAGERS INITIATIVE

    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.  

  • INSTITUTIONAL INVESTORS GROUP ON CLIMATE CHANGE (IIGCC)

    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 a member of the IIGCC, Coutts is committed to working actively with other investors to tackle climate change. We 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.

 

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)

Principles for Responsible Investment is a United Nations-supported international network of financial institutions working together to implement its six aspirational ESG principles. The PRI encourages investors to use responsible investment to enhance returns and better manage risks.

 

CLIMATE CHANGE

‘A change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods.’ (UNFCCC)

 

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. The content on this page applies to our core Discretionary Portfolio Service (DPS), Personal Portfolio Funds (PPF) and Coutts Managed Funds (CMaF) which we refer to as managed assets. To view our key terms and their meanings, please visit our further information page.

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