CT Responsible Global Equity Strategy - ESG Profile and Impact Report 2022
Insights

CT Responsible Global Equity Strategy – ESG Profile and Impact Report 2022

As we mark the 25th anniversary of the Responsible Global Equity Strategy, there are two natural urges: to look back at the journey so far, and to look forward to the future with renewed purpose.

Over the last quarter century, our sense of what it means to be a leading responsible Strategy has evolved enormously.

In the early days, our emphasis was firmly on screening, safeguarding client’s ethics and assets by excluding companies that breached certain screens. Over time, the Strategy has broadened its responsible approach, proactively seeking out companies that are providing sustainable solutions to the most profound social and environmental challenges, and then engaging extensively with these companies to upgrade their ESG profiles.

Our emphasis is now evenly distributed across these 3 pillars – avoiding, investing, improving.

But investing is not about nostalgia. The past is useful because it teaches, and 2022 has doled out lessons that were often harsh, but always instructive. We saw the spectre of runaway inflation return, CPI peaking at levels not seen since the 80s. This dramatic inflation was triggered by unique circumstances: supply-chain disruptions rooted in lockdowns without precedent, energy prices stoked by European war, and covid stimulus programmes that were the largest in recorded history.

Such extraordinary circumstances triggered correspondingly radical action from central banks, the Fed engaging in one of the fastest hiking cycles ever, going from near zero rates in March 2022 to 500bps a little over a year later.

These macro events drove markets, often swamping company fundamentals. Rising discount rates drove a rotation out of growth and into value; the Energy sector led all others as oil ripped through $100 per barrel; weapons companies bounced, ominously benefitting from a geo-political chill that pushed up global military expenditure to record levels. And in 2023, Silicon Valley Bank, which we owned, mismanaged its duration risk as rates soared, and fell victim to a bank run that led to its closure.

We are not a team given to complacency, but these factors created severe performance headwinds and have been a humbling experience, making us hungrier than ever to drive performance for clients.

2022 may have been challenging, but one of the salutary lessons from the past is the remarkable ability of humans and corporations to innovate out of challenges. As 2022 came to an end, we saw a striking example of this, the surfacing of one of the most potentially transformative technologies in decades: language generative AI.

Exploding into the public consciousness via OpenAI’s ChatGPT, AI offers awesome possibilities, and will create enormous economic value, but it is something which will require responsible shepherding, both by regulators and by shareholders. It is exactly the sort of space where our Strategy can add value.

The English playwright John Heywood is credited with the famous epigram, Rome was not built in a day. Less well known is the second half of the epigram: but they were laying bricks every hour. Over the next quarter century, we can’t guarantee success on any one day, but we can promise hour by hour to continue to take the small steps; the search for companies, the analysis, the engagement work, all necessary in the long-term to build a successful Strategy that innovates and leads from the front.

1 August 2023
Nick Henderson
Nick Henderson
Director, Portfolio Manager
Harry Waight
Harry Waight
Portfolio Manager
Share article
Share on linkedin
Share on email
Hauptthemen
Verwandte Themen
Listen on Stitcher badge
Share article
Share on linkedin
Share on email
Hauptthemen
Verwandte Themen

PDF

CT Responsible Global Equity Strategy – ESG Profile and Impact Report 2022

Risk Disclaimer

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

Verwandte Beiträge

11 April 2024

Stewardship quarterly - Q4 2023

Our report outlines our global active ownership, including a selection of engagement case studies.
Read time - 4 min
8 April 2024

Andrew Droste

Vice President, Responsible Investment

Viewpoint ESG-Anlagen: Ein kurzer Rückblick auf die US-Hauptversammlungssaison 2023 und Ausblick auf 2024

Wir geben einen kurzen Überblick über die wichtigsten Ergebnisse der Hauptversammlungssaison 2023 in den USA. In ihr wurde eine Rekordzahl von Aktionärsanträgen zur Abstimmung gestellt, und die Zahl der ESG-feindlichen Anträge von Aktionären nahm zu.
Lesezeit- 2 min
26 März 2024

Ebele Conroy

Investment Analyst, Global Research

Joe Horrocks-Taylor

Senior Associate, Analyst, Responsible Investment

Green machines: the future of transport

The transportation sector has a significant impact on global emissions, but technology innovations, policy changes and shifting behaviours can reduce this. How are the different modes progressing?
Read time - 5 min
11 April 2024

Stewardship quarterly - Q4 2023

Our report outlines our global active ownership, including a selection of engagement case studies.
Read time - 4 min
9 April 2024

In Credit Weekly Snapshot – April 2024

Our fixed income team provide their weekly snapshot of market events.
Read time - 5 min
8 April 2024

Steven Bell

Chief Economist, EMEA

Interest rates, inflation and immigration

Do rising US rents, fuelled in part by higher immigration, call for a reappraisal of the likely scale and pace of US interest rate cuts?
Watch time - 6 min
true
true

Risk Disclaimer

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

Das könnte Ihnen auch gefallen

Investmentansatz

Teamwork bildet eine wichtige Grundlage unseres Anlageprozesses, der so strukturiert ist, dass er die Ausarbeitung, Bewertung und Umsetzung fundierter und vielversprechender Anlageideen für unsere Portfolios erleichtert.

Fonds

Columbia Threadneedle Investments bietet eine umfangreiche Palette von Investmentfonds an, die eine Vielzahl von Anlagezielen abdeckt.

Anlagekapazitäten

Wir bieten eine breite Palette aktiv verwalteter Anlagestrategien und -lösungen für globale, regionale und inländische Märkte und Anlageklassen.

Bitte bestätigen Sie einige Angaben zu Ihrer Person, um Ihr Präferenzzentrum zu besuchen

*Pflichtfelder

Etwas ist schief gelaufen. Bitte versuche es erneut

Vielen Dank. Sie können jetzt Ihr Präferenzzentrum besuchen, um auszuwählen, welche Einblicke Sie per E-Mail erhalten möchten.

Um zu sehen und zu aktualisieren, welche Erkenntnisse Sie von uns per E-Mail erhalten, besuchen Sie bitte Ihr Preference Center.