Responsible investment

Responsible investment

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Our focus on strong stewardship, engagement and responsible allocation of our clients’ capital allows our investment teams to manage through volatility while addressing a range of complex global challenges.

Mark Steinberg

CEO of First Sentier Investors

Responsible investment principles underpin our investment approach

To contribute to a sustainable economy and society, we seek to collaborate with our clients, competitors and broader stakeholders. We do this by participating in industry forums, actively engaging with investee companies, regulators and policy makers, and publishing thought leadership.

At firm level we are currently focused on the following four key issues: climate change, human rights and modern slavery, diversity, and nature and biodiversity.

Our net zero journey

We believe that society must drastically reduce greenhouse gas emissions if we are to avoid the worst consequences of the climate crisis. It has become obvious that immediate climate action is needed in order to meet the Paris Agreement’s goal of limiting rises in global temperature to 1.5 degrees Celsius.  

The individual and collective decisions we make as active investors can influence the nature and speed of this transition.

 

2024 Climate and Nature Report

The 2024 Climate and Nature Report is intended for adviser and institutional audiences only.

Building a better future

We have the opportunity and responsibility to allocate our clients’ capital in a way that drives positive social and environmental outcomes within the context of our investment strategies.

We have developed a range of tools to address some of the issues we face as investors, which enable our investment teams to confidently engage with companies, in search of tangible outcomes.

 

A snapshot of our progress

Five year trend data from 31 December 2019 to 31 December 2024. The data set out above are estimates based on data sourced by First Sentier Investors. This data is current as at 31 December 2023. It is based on information and representations sourced from third parties (including portfolio companies), that may not be externally audited, which may ultimately prove to be inaccurate. No assurance is given or liability accepted regarding the accuracy, validity or completeness of this data and no reliance should be placed on it by any third party.

1 Portfolio weighted average of each company’s carbon intensity (scope 1 & 2) per US$m sales.

2 The carbon emissions of a portfolio per US $m invested. Scope 1 and 2 emissions are allocated to investors based on enterprise value ownership approach i.e if an investor owns 10% of a company's total enterprise value including cash (EVIC), then they own 10% of the company and therefore 10% of the company's emissions. This is then normalised by portfolio value.

3 Assets under management

4 Taskforce on nature-related financial disclosures

5 For the firm-level assessments of our dependencies, impacts, risks and opportunities, we focused on listed equities and corporate fixed income asset classes (excluding cash, derivatives, futures, options, short positions and sovereign/government bonds) as at 31 December 2024.

6 Have disclosed exposure to sectors and to sensitive locations respectively, on page 35 of the 2024 Climate and Nature Report, as recommended by the TNFD in the ‘Additional guidance for financial institutions

7 Coverage is 89.66%

8 As at June 2024 

 

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As long-term investors, we know that the decisions we make impact communities today, tomorrow and years from now. Responsible investment and stewardship are at the core of how we operate as a business and allocate capital, and we are committed to transparency and accountability regarding our performance in this area.

Discover our reports

Read our latest annual Responsible Investment and Stewardship Report

Download report

Read our 2023 Responsible Investment Report

Download report

1 Ernst & Young was engaged by First Sentier Investors’ Global Property Securities team to undertake ‘limited assurance’ as defined by International Auditing Standards, over First Sentier Investor’s Portfolio Operational Carbon Emissions (Scope 1 and 2) Forecast to Net Zero for the year ended 30 June 2021. Based on the review, Ernst & Young determined the forecast was prepared and presented fairly, in all material respects, in accordance with the defined Criteria.

2 According to IAST APAC Annual Report FY 2022-23