Sustainable investing

OVERVIEW

Sustainable investing at Royal London Asset Management

In our view, strong sustainable credentials are often a good leading indicator of long-term financial performance with respect to growth and profitability and we believe that sustainable investing focuses on an exploitable market inefficiency.

By embedding sustainability analysis into our investment process, we believe we can identify investment insights that others may miss.

Our core principles

1. We invest in sustainable companies based on what they do (products and services) and how they do it (operations). The positive contribution of a company can be through the products and services they provide, and operations of how a company looks after its operational assets, the environment, its stakeholders and the role it plays within its industry.
2. We use active engagement to encourage good and responsible corporate behaviour and continuous improvement, where there are adverse impacts. We aim to drive positive change.
3. We actively avoid companies that undertake business activities deemed to be detrimental to society and that breach our sustainable principles. These include areas such as tobacco and armament manufacturers, nuclear-power generators, and companies that are unwilling or unable to mitigate the significant negative environmental impacts associated with their business such as fossil fuel extraction or mining companies.

Mike Fox
Head of Equities