Environmental, Social, Governance (ESG) in Conning's Investment Approach
Conning believes the integration of environmental, social, and corporate governance risk factors into our investment process serves our insurance and pension clients’ needs and allows us to adhere to the fiduciary duty we owe them.
In 2012, Conning became a signatory to the Principles for Responsible Investment (PRI) Initiative to solidify our commitment to a discipline we have practiced for many years. PRI provides a voluntary framework by which investors can incorporate ESG issues into their decision-making and ownership practices to better align their objectives with the values of society at large. In 2019, Conning also became a signatory to PRI’s new ESG in Credit Ratings statement, committing to incorporating ESG into credit ratings and analysis.
We are proud to report that Conning, along with our subsidiary Global Evolution, received an A+ score for our overarching approach to ESG Strategy and Governance in the 2020 Assessment Report from PRI.
In addition, Conning’s London office and Global Evolution, based in Kolding, Denmark, are supporters of the Task Force on Climate-related Financial Disclosures (TCFD) and will be reporting under these disclosure guidelines beginning at year-end 2020.
Paris Agreement Statement
Conning supports the central aim of the Paris Agreement, 'to strengthen the global response to the threat of climate change', through our Corporate Governance actions, and our approach to helping clients identify, measure and manage the potential risks associated with climate change.
Determining the long-term sustainability of an issuer’s business model is paramount, and ESG risk factors contribute to a robust, holistic assessment. Conning examines a broad array of indicators, samples of which are illustrated under the Types of ESG Indicators section on the right side of the page.
Our commitment to ESG exists at the highest levels of the firm. Conning’s Board of Directors supervises management’s efforts to adhere to the firm’s standards for investment operations, including ESG considerations. Conning’s Chief Risk Officer (CRO) is responsible for oversight and compliance of client guidelines related to ESG issues, supported by a global ESG Steering Committee. This committee, created in 2017, provides strategic guidance for the firm’s ESG initiatives to strengthen our responsible investment practices. It includes senior leadership from investment operations in the U.S., Europe and Asia and meets quarterly.
Conning's Strategic Partnerships
Conning's subsidiaries, Octagon and Global Evolution, also share our strong commitment to ESG investing. Global Evolution has been a leader in utilizing ESG research in its management of sovereign debt since the firm's inception. Both Octagon and Global Evolution are PRI signatories.
Climate Risk Analysis
Insurers and pension plans need to understand how different climate change scenarios might affect the financial markets and their holdings over a range of time horizons. Click here to learn more about Conning's climate risk analysis.