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Responsible Investing
Responsible Investing

Climate Risk and Responsible Investing (RI)

Environmental, social and governance (ESG) issues are key investment risk management tools. We have factored climate-related risks and opportunities into our fundamental analysis and ESG process.

Our Commitment

ESG indicators highlight non-financial risks. These are not the only indicators of risk, but they form part of a holistic credit process. The purpose of integrating ESG factors into the investment process is to improve the analysis of all potential investments, promote better standards of practice, and assist in mitigating against any ESG risks to potential or existing loans or investments.

The application of ESG analysis and screening is defined by our clients’ expressed preferences. Where no preference is expressed, we exercise judgement and integrate ESG issues into the investment analysis and decision-making process with the aim of mitigating overall portfolio risk. At all times the particular fund’s asset allocation or investment strategy must prevail to ensure that risk-adjusted returns are achieved. Principles of sound portfolio management should not be compromised in the RI or ESG screening process.

Futuregrowth endorses the Code for Responsible Investment in South Africa (CRISA) and is a signatory to the UN Principles for Responsible Investment (PRI).

We consciously seek to invest client funds in a responsible manner and thereby support the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) principles as part of our overall investment strategy.