Acadian has a long history and deep experience with Responsible Investing. Our commitment to ESG innovation is focused on enhancing risk-adjusted returns and is underpinned by our proprietary empirical research. Our approach to ESG centers around three pillars – Signals, Solutions, and Stewardship.
SIGNALS
|
 |
|
ESG INTEGRATION |
Our stock selection process integrates more than 20 environmental, social, and governance signals that are incorporated for the sole purpose of enhancing the prediction of risk-adjusted returns. We have a long history of utilising AI and machine learning techniques.
 |
 |
 |
| DECARBONIZATION | SUSTAINABILITY TILTS | EXCLUSIONS |
Target improved carbon and sustainability profiles and/or implement product and norms-based screens (upon request) - typically with non-concessionary impact on alpha exposure. Range of SFDR Article 8 UCITS funds available.
STEWARDSHIP
|
 |
|
ACTIVE OWNERSHIP
|
Active ownership practices seek to understand companies’ strategic and scenario planning efforts. Engagements align with ESG signals in alpha model and leverage sophisticated quantitative techniques.
It is well known that there is a relatively low correlation across the major data vendors’ ESG ratings highlighting subjectivity and measurement error. A systematic approach based upon empirical evidence overcomes these concerns.
Our investment team includes experts in machine learning, data science techniques, and alternative data to create forward-looking material ESG signals. We do not use ‘off-the-shelf’ scores within our investment process.
We pay careful attention to the formulation of ESG signals across sectors, regions, and time based upon their efficacy.
A key strength of our process is the ability to weigh the relative importance of ESG metrics alongside company fundamentals.
Third-party initiatives align with our investment conviction themes and are further informed by escalating ESG controversies and thematic responsible investing trends.
|
|
We consider utilities’ impact on the carbon intensity of global benchmarks. In more recent periods, low volatility managers have looked to other, more effective diversifiers to reduce portfolio risk. However, as the outlook for utilities improves and investor demand returns, decarbonization efforts will require prudent deliberation and sophisticated methods to balance decarbonization priorities and risk-reward objectives. Link below for the full piece.
Read MoreWe highlight potential environmental policy changes in the U.S. under a Biden administration. Given the uncertainty that remains, particularly with yet-to-be-resolved Congressional leadership, we also discuss the importance of a nuanced and dynamic approach to incorporating the impact of environmental policy change when it occurs.
Read MoreWe believe that certain ESG considerations influence corporate success and investment performance, but amid relentless hype and pressure to participate, many approaches have been brought to market that are based on imprecise foundations and rudimentary implementations.
Read More |
|
