RIIM, our proprietary research model designed specifically for responsible investing analysis, helps ensure robust and consistent analysis of ESG data. This section includes: • Philosophy and Process • Fundamental Research • ESG Case Studies For investment professionals only. Not for further distribution
ESG IN ACTION
We integrate ESG data into the investment process
Investment analysts and portfolio managers collaborate with our team of ESG specialists
We apply materiality, which helps us focus on the most relevant ESG issues for each entity’s business model
We value the specialist expertise – covering responsible investing, governance and regulatory research – of ESG-dedicated investment personnel. This helps our investors identify, analyse and integrate the factors most likely to impact long-term investment performance.
Our proprietary Responsible Investing Indicator Model (RIIM) helps us to conduct consistent, deep, fundamental research. Using data not traditionally used in mainstream investing – such as non-financial data and incident history – it builds an environmental, social and ethical or governance profile for companies and sovereign entities. It also allows portfolio managers to assess concentrated ESG factor risks in each portfolio.
Bayer AG: German conglomerate comprised of pharmaceuticals, crop science, consumer health and animal health
Generated a healthy free cash flow yield, allocating capital efficiently, but litigation risk prompted selling among investors
Our engagement on ESG topics, such as board oversight, product sustainability, lobbying practices and ESG accountability helped us gain confidence that the company was working to resolve these issues.
Health Care : Bayer AG
Georgia: situated at the intersection of Europe and Asia, gained independence from Soviet Union in 1991; saw a peaceful change of power in 2003
Supported by robust fundamentals, with attractive U.S. dollar bonds relative to peers
Georgia has shown significant improvement in governance standards over the past two decades, boasting a strong track record of prudent policies and structural reforms.
Governance : Georgia
Taiwan Semiconductor Manufacturing Company: one of the world’s largest pure-play semiconductor foundries producing custom-built chips for a broad consumer base, from smartphones to medical devices and fighter jets
A global leader in leading-edge chip production, well placed to capture growing market share
As a large-scale foundry, they have a distinct environmental footprint, but manage this carefully through structured, robust environmental strategies.
Technology : TSMC
AIA: life insurer operating in Southeast Asia, mainly active in Hong Kong, Thailand, Singapore, growing rapidly in China, Malaysia and Indonesia
Has an un-replicable footprint across Southeast Asia, with strong management team and track record of successful execution
AIA's strong focus on responsible investing reduces exposure to potential risks. It actively addresses sustainability challenges in many of its markets.
Insurance : AIA
Our research is closely aligned with global ESG frameworks, as measured in our Responsible Investing Indicator Model (RIIM)
Read more in the full report.
