Wealth Management UK
Our responsible investment approach
Many of our clients want to know that we’re investing responsibly and in line with their vision of making the world a better place. While everyone’s view of a better world will look slightly different, by making investments in sustainable businesses with responsible business practices we believe we can contribute to a more sustainable and resilient world.
Investing sustainably is the only way to deliver attractive returns over multiple generations. This involves taking a long-term view and investing in companies with sustainable business models and responsible business practices, as well as selecting actively managed funds that share this philosophy.
Investing responsibly is not a box-ticking exercise or simply a matter of adhering to a list of rigid criteria. For us, it involves considering all the issues that affect a company’s financial performance over the long term, including relevant environmental, social and governance (ESG) factors.
The below graphic, which we call a 'Spectrum of Impact,' gives a broad overview of different investment approaches, together with the responsible investment landscape. Investment approaches range from the traditional approach which focusses only on financial returns, to philanthropy where there is no expectation of financial return at all. Between the two there is a wide range of strategies which have different financial and ESG objectives.
There is a lot of jargon surrounding responsible investment, and what it means to be ‘responsible’ is of course, subjective.
We seek to address this lack of clarity below to ensure that our clients understand what we mean when we use certain terms in this rapidly evolving area of investing.
The 'spectrum of impact'
Rothchild & Co Wealth Management UK is proud to be a signatory of the UN’s Principles for Responsible Investment (UN PRI) and the UK Stewardship Code. We have a UNPRI rating of A- and a top tier 1 rating for the UK Stewardship Code. The Rothschild & Co Group is also a signatory of the UN Global Compact and we are committed to engaging in collaborative projects that advance the UN’s Sustainable Development Goals.
Although ESG considerations have always been part of our investment process, we constantly improve and adapt our approach to ESG, and report annually on those improvements. We have also written and shared our Responsible Investment Policy, which offers an insight into our thinking, the practical steps we take as responsible investors, and our vision for tomorrow.