How we integrate ESG into your investments
How does ESG integration work?
Asset managers look at a wide range of information when deciding if it’s a good choice to invest in a company, including ESG data.
ESG data contains information about a publicly traded company’s environmental, social and governance practices, and uses this information to create an ESG score (sometimes called a rating).
This data can be compiled by a team of ESG analysts or through artificial intelligence (AI), or a mix of both. Using information from things such as annual reports, news sources, and stock exchange filings, a data provider will give a company an ESG score; the better the score, the stronger the investment opportunity from an ESG perspective.
We ask all our asset managers to include ESG data when making investment decisions. What’s more, our asset managers at Royal London Asset Management (RLAM) are supported by a specialist Responsible Investment team who provide further insights and analysis to ESG scores.
This is to help us make the best possible choices to contribute to a better future for society, and of course, aim to generate the best possible returns for you.
Does my pension benefit from ESG integration?
Yes – we’re committed to having ESG factors integrated across all our investment solutions, not just a specialist few.
Chief Investment Officer Piers Hillier explains how Royal London Asset Management (RLAM) approaches responsible investment.
Collaboration in action
RLAM’s responsible investment team will work with other shareholders and organisations to help create better outcomes for you.