Investing in a future that matters is more relevant than ever before. We live in a world that is more connected than it has ever been. This interconnectedness spans our societies, markets and environment. A fundamental principle of Responsible Investing (RI) fostered at Old Mutual Investment Group (OMIG), as it considers the impact of unpriced externalities. By recognising these, we essentially force industry participants and clients to consider the common wisdom of pursuing short-term returns at the expense of long-term resilience of social and environmental systems.

The lockdown in South Africa, put in place to help reduce the spread of COVID-19, has had a devastating impact on our society. Now more than ever, the urgency of creating an economy around the concept of shared value comes to the fore. There is a need for a stakeholder inclusive model where value is shared across participating shareholder groups. This requires business leaders and management to consider a broad range of stakeholders and the associated impact on business in the decisions they make.

In the current age of populist politics, the role of science has increasingly taken a back seat. This is increasingly concerning as scientific research documenting the impact we have had on the environment is often overlooked or not taken seriously. Within an RI framework – there is a need to understand the underlying scientific workings behind climate change, allowing us to better position ourselves for the risks and opportunities that present themselves.

Therefore, making it appropriate to strive to incorporate ESG principles into the DNA of the asset management industry with investment processes that afford the opportunity to pursue superior risk-adjusted returns whilst at the same time positively impacting the communities and environment we operate in. 

The proven stewardship approach and the services offered at OMIG incorporate lessons learnt through our proxy voting and engaging with companies, regulators and industry bodies. We are driven as a business to drive impact related to ESG research because, in essence, what RI asks of us isn’t new. It is a resounding truth that we all know, in this journey, going it alone will not take us far. It is important that we work together as an industry, a community, a country and the world, so that we may go far into sustaining our ecosystem. BM

To answer more of your investment related questions, contact us at [email protected] or visit http://ww2.oldmutual.co.za/old-mutual-investment-group/insights/  for more news and insights.