The investment environment in our society is changing and more focus is being placed on investing in companies that have either a positive impact, or at least no negative impact, on Environmental, Social or Governance (ESG) factors. These include:

Environmental

  • Climate change and energy usage
  • Resource scarcity
  • Supply chain management
  • Waste and recycling
  • Impact on biodiversity

Social

  • Employee treatment and relation
  • Gig economy
  • Health and safety
  • NDAs
  • Social and community impact
  • Product responsibility
  • Workforce diversity

Governance

  • Board structure
  • Diversity
  • Executive remuneration
  • Culture
  • Bribery and corruption
  • Vision and strategy

The Boards of UMAL & UMSR acknowledge the need to embrace this change and support companies that are helping to meet the world’s environmental and social challenges. We also recognise the importance of balancing this with the need to meet the financial goals of the Association and the members that we serve.

All actively managed funds in which UMAL & UMSR invest, have a stated ESG policy that takes into account various factors, including but not limited to those stated above. When selecting these funds our advisers make use of independent external research to help select appropriate investment vehicles.

The Association supports ESG compliant funds/companies with the preference to invest in collective investments with a stated ESG policy that supports responsible investing. However, it is possible that where the Association invests in Index Tracking funds, a small number of the underlying constituents may not meet all of the above ESG criteria. The number of companies involved will be a very small proportion of the overall portfolio.

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