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.
STEWARDSHIP
Stewardship forms a core part of our approach to responsible investing. We engage with companies through EOS at Federated Hermes on issues such as climate change, human rights violations and corporate governance.
FUTURE LOOKING FUNDS
Funds managed by third parties are a big part of our managed funds and client portfolios. When selecting them, we assess how closely their responsible investing approach matches our own.
CLIMATE CHANGE
We believe climate change poses one of the biggest risks to the global financial system as it does to the environment.
In 2021, we stated our ambition to achieve net zero emissions across our assets under management by 2050. To strengthen this commitment, we joined the Net Zero Asset Managers Initiative and disclosed our commitments as part of their public disclosure report.
sTEWARDSHIP
Stewardship forms a core part of our approach to responsible investing. We engage with companies through EOS at Federated Hermes on issues such as climate change, human rights violations and corporate governance.
FUTURE LOOKING FUNDS
Funds managed by third parties are a big part of our managed funds and client portfolios. When selecting them, we assess how closely their responsible investing approach matches our own.
CLIMATE CHANGE
We believe climate change poses one of the biggest risks to the global financial system as it does to the environment.
In 2021, we stated our ambition to achieve net zero emissions across our assets under management by 2050. To strengthen this commitment, we joined the Net Zero Asset Managers Initiative and disclosed our commitments as part of their public disclosure report.
OUR PHILOSOPHY
For us, sustainability means achieving today’s goals without compromising the ability of future generations to do the same.
Responsible investing is one of three key factors we consider when deciding where to invest your money – along with managing risk and managing costs.
We believe funds that take ESG factors into account in their investment strategy have greater potential to deliver long-term returns.
SUPPORTING GLOBAL INITIATIVES
We understand that sustainability is a shared responsibility.
This is why we work with some of the world’s leading investor initiatives to help improve the world we live in.
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)
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.
Contact Us
Become a client
When you become a client of Coutts, you join a network of exceptional people. Get in touch online or call +44 (0)20 7753 1365 to find out more about our services.
Already a client?
Contact your private banker at any time or call +44 (0)20 7957 2424 for more information.
All calls with Coutts are recorded for training and monitoring purposes.
News & Insights
Coutts support investors’ call for Real Living Wage at Sainsbury’s
