ESG and Invesco
ESG integration is an ongoing strategic effort, and investment teams will vary in their level of ESG integration. We are presently working to apply these principles into all of Invesco’s assets under management. There is little value in providing pre-packaged, one-size-fits-all strategies to ESG-focused investors. All are different, with differing time horizons, levels of risk tolerance, return expectations and commitment. Invesco has the depth of products and, combined with a deeply consultative approach, we believe is uniquely positioned to seek to deliver purposeful outcomes for nearly any investment objective.
ESG investing is a fundamental commitment at Invesco. We're a trusted partner to our clients, both on ESG product strategies and as part of our mission to deliver an investment experience that helps people get more out of life. We adopt and implement ESG principles to align with our fiduciary responsibilities and have strengthened our position through industry advocacy, leadership and innovation.
The starting point for our company-level ESG research is the analysts and fund managers, who will look at a variety of factors. These will differ per asset class, sector, geography and company and will typically be one component of an overall investment view. Based on this initial view, where the fund managers and analysts wish for more detailed ESG information, our Global ESG team can provide proprietary analysis. Crucially, while there is global, centralized support, decisions are ultimately made by our investment managers and analysts – the individuals who know their asset classes and sectors best.
While our first socially responsible investment product was launched over 30 years ago, we became a signatory of the UN-backed Principles for Responsible Investment in 2013 and have since achieved an A+ in Strategy and Governance for three consecutive years. This rating demonstrates our extensive efforts in ESG integration, active ownership, investor collaboration and transparency. We’re also disclosers to and investor member of the Carbon Disclosure Project, and in 2019 we became supporters of the Task Force for Climate-related Financial Disclosure (TCFD) with our inaugural Climate Change report published in Q2 2020.
Investment risks
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The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuatuions) and investors may not get back the full amount invested.
Important information
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The opinions referenced above are those of the authors as of September 21, 2020. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.
