Responsible Investing

Responsible Investing

Responsible Investing

Responsible Investing

Learn more about Redpoint’s Responsible Investing framework:

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Redpoint was founded in 2011 with the integration of Economic, Environmental, Social and Governance (EESG) issues into our portfolios as a strong founding principle.  

Our approach to Responsible Investing was built on this heritage to establish a systematic and repeatable framework for the integration of Responsible Investment objectives. All our strategies currently embed elements of Sustainability by using our proprietary EESG rating as an input into the stock selection process and/or using Socially Responsible Investing (SRI) considerations to explicitly exclude assets from our portfolios.

Our approach aims to address two core principles which drive the asset owner collective as they look to address the responsible investment challenge.

Universal Ownership

Definition:

Universal owner refers to an investor whose highly diversified, long-term portfolio of assets is sufficiently representative of global capital markets meaning that they are effectively invested in a slice of the global economy, and thereby making their long-term returns dependent on the continued good health of that overall economy.

Implication:

Endorsement of UN SDGs, UN Global Compact and/or other similar frameworks

Stewardship / Active Ownership

Definition:

Stewardship and active ownership refers to the responsible allocation and management of investment capital, and the use of ownership rights to influence the behaviour and activities of companies with the ultimate goal being to maximise value for all stakeholders including shareholders, the environment and society as a whole.

Implication:

Signatories to the UN-backed PRI and/or the Australian Asset Owner Stewardship Code

In assisting clients in executing on their commitments as universal owners of listed assets, we are actively engaged and can build portfolios that specifically address the below Responsible Investing areas.

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Divestment

Helping clients address their ethically principled positions by excluding companies from the portfolio based on their operational involvement in specific activities such as gambling, alcohol or fossil fuel extraction, no matter how attractive they may seem as a financial investment.

ESG

Identifying those companies that acknowledge and adequately manage environmental, social and governance (ESG) risks within their operations. Tilting portfolios on ESG metrics can improve the underlying long term quality metrics of the portfolio based on the stakeholder theory of the firm.

Climate Change

Identifying those companies that are setting targets and actively reducing their carbon footprint (positive) relative to those that continue to have high carbon intensity (negative) and incorporating this as an input to constructing portfolios that help address the climate change challenge.

Stranded Assets

Identifying those companies that have a higher risk of owning stranded assets due to structural changes such as industry structure, or climate change and excluding these or underweighting these companies from the portfolio.

Engagement

Supporting company boards through the positive use of voting rights and company engagement with the objective of ensuring that the economic interests of all stakeholders is maximised.

Impact

Identifying companies that are expected to provide a long-term societal benefit and thereby represent an investment opportunity for shareholders to benefit from these evolving transitional themes.

Divestment

ESG

Climate Change

Stranded Assets

Engagement

Impact