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 août 2023
Nick Henderson
Nick Henderson
Director, Portfolio Manager
Harry Waight
Harry Waight
Portfolio Manager
Share article
Share on linkedin
Share on email
Sujets clés
Sujets connexes
Listen on Stitcher badge
Share article
Share on linkedin
Share on email
Sujets clés
Sujets connexes

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.

Eclairages connexes

19 juin 2024

Sally Springer

Senior Thematic Research Analyst, Global Research

Human capital – supply: the impact of demographic transition on investments

Working populations are in decline, with the demographic dividend that has supported economic growth in many developed markets under threat. This will have a direct impact on the firms in which we invest.
Read time - 8 min
14 juin 2024

Natalia Luna

Senior Thematic Investment Analyst, Global Research

US elections: the Inflation Reduction Act and the risk of repeal

A full reversal is considered unlikely, but we believe the possibility of a partial repeal, which could see tax credits and funding programmes weakened, is underappreciated. Here is how Columbia Threadneedle will assess this risk and the potential implications for the most exposed sectors.
Read time - 3 min
21 mai 2024

Pauline Grange

Portfolio Manager, Actions mondiales

Water in crisis – searching for solutions

With too much, too little or too toxic water the world is facing a water crisis. We explore key issues and challenges before highlighting some of the companies promoting better water management.
Read time - 3 min
24 juin 2024

Melda Mergen

Global Head of Equity

Equity outlook: High valuations and higher-for-longer rates

Despite some short-term concerns, we see opportunities in stocks around the globe.
Watch time - 3 min
21 juin 2024

James Coke

Fund Manager & Co-head of Institutional UK Real Estate

Emma Gullifer

Assistant Fund Manager

Green to gold: realising opportunities from the carbon transition

We explore the interventions required to monetise green energy, and how investors might benefit from the carbon transition.
Read time - 2 min
20 juin 2024

Gary Smith

Client Portfolio Manager, Fixed Income

What do geopolitical risks mean for central bank FX reserves managers?

Two major industry surveys show that adjusting for geopolitical challenges will impact the way foreign exchange reserves are managed
Read time - 8 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.

Vous pourriez aussi aimer

Approche d’investissement

Le travail d’équipe est fondamental à notre processus d’investissement qui est structuré de manière à évaluer et mettre en pratique de solides idées d’investissement pour nos portefeuilles.

Fonds et VL

Columbia Threadneedle Investments dispose d’une gamme complète de fonds d’investissement répondant à un large éventail d’objectifs.

Compétences d'investissement

Les capacités d’investissement de Threadneedle sont fondées sur la culture de collaboration de notre plate-forme d’investissement unique.

Veuillez confirmer quelques détails vous concernant pour visiter votre centre de préférences

*Champs obligatoire

Une erreur s'est produite veuillez réessayer

Merci. Vous pouvez maintenant visiter votre centre de préférences pour choisir les informations que vous souhaitez recevoir par e-mail.

Pour afficher et contrôler les informations que vous recevez de notre part par e-mail, veuillez visiter votre centre de préférences.