As part of our effort to deliver consistent long-term returns, we also strive to be responsible stewards of our clients' assets within a framework of good governance and transparency. As an active manager of global equities, fixed income and real estate assets, we seek opportunities that help deliver sustainable growth and returns for our clients.
Being a responsible investor is integral to our business proposition and defines how we act in the marketplace. One component of our investment philosophy is the belief that effective stewardship benefits companies, investors and the economy as a whole. We believe that well-governed companies are better positioned to manage the risks and challenges inherent in business and capture opportunities for growth.
Consistent with our commitment to being a responsible investor and our duty to act in the best interest of our clients — we, both Columbia Management Investment Advisers, LLC (CMIA) and Threadneedle Asset Management, Ltd. (each, a firm), are signatories to the (PRI) Principles for Responsible Investment.
How we implement the Principles
We will incorporate ESG issues into investment analysis and decision-making processes. We have an integrated approach to responsible investment and ESG research and implement them by making ESG performance ratings and research available to our portfolio managers and analysts in our investment tools. This integrated approach is supported by our culture of collaboration, sharing of research and ideas. In developing our understanding of a portfolio company, we may take into account its approach to managing environmental, social and governance issues.
We place emphasis on both internal and external resources to guide and prioritize our work. Among a host of resources, we have access to an external ESG rating provider covering nearly 6,000 companies globally.
We will be active owners and incorporate ESG issues into our ownership policies and practices.
We actively vote our shares globally and engage with companies on important ESG issues. We follow regional voting principles and take into account local market practice.
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
We place value on transparency by companies, and may encourage transparency in our discussions around ESG performance.
We will promote acceptance and implementation of the Principles within the investment industry.
We participate in external forums and discussions where relevant and appropriate and are actively involved with the PRI Secretariat.
We will work together to enhance our effectiveness in implementing the Principles.
We may engage in meaningful collaboration with other investors in company dialogue and wider ESG issues. In those cases, we take into account consistency of purpose and conflict of interest policies.
We will report on our activities and progress towards implementing the Principles.
Columbia Threadneedle Investments is a signatory to the Investor Signatory Group (ISG), which includes some of the largest asset managers and asset owners in the world who leverage stewardship best practices in their engagement and proxy voting activities. The ISG was formed to promote corporate governance principles for listed companies and stewardship principles for institutional investors, and to encourage the enhanced transparency and standards of practice that underpin long-term, sustainable value creation that strengthen trust in markets and the economy as a whole.