Responsible Investment Policy Framework

Historically Responsible Investment (RI) was associated with value or norms-based security exclusions, but as awareness around RI issues grows globally, investors now have different motives for considering RI in the investment process including the financial materiality of RI-related risks. This has led to spectrum of approaches to RI.

This memo contains discussion on the following areas of building and documenting an RI Approach:

• Foundations of an RI Approach: Key considerations including the key drivers, the spectrum of approaches, resource requirements, data, and the impact of RI on products.
• Building Blocks of an RI Approach, including:
  • Responsible Integration
  • Responsible Asset Selection: Exclusions, Inclusions, and Impact
  • Responsible Ownership: Voting, Engagement, and Activism
  • Responsible Corporate and Market Citizenship: Organisational Initiatives, Good Market
  • Citizenship, and Carbon Offset and Hedging

Section 5 consolidates this into a framework for disclosures within an RI Policy.