Insights > Sustainable Investing
Sustainable investing – a trend that’s here to stay
20 February 2020 | Jason Liddle, Head of Distribution at Sanlam Investments
As we leap into the next decade, it is important to consider which trends will transform the asset management industry. Sustainable investing is becoming a mainstream discipline and a key trend in the 20’s. Regulators across the world are setting expectations for the industry’s players with requirements of greater transparency, investment process integration and reporting. Sustainability factors have also shown evidence of enhancing performance and the ability to avoid certain risks that might not have been avoided otherwise, further benefiting investors.
There are currently several different approaches in the market
With impact investing gaining momentum, experts are attempting to reach a consensus on the overarching requirements and best approach to impact investing.
“Active ownership is key!”
As a result, several approaches for implementing a sustainable investing framework have emerged and investors can benefit from a better understanding of each of these:
Over the next few years leading asset managers will help develop an authentic and credible approach to impact investing which incorporates many of the above trends. Evidence-based proof of the integration into their investment philosophy will support their credibility and investors should be encouraged to ask for this. Active ownership is key – and engagement, intervention and proxy voting often act as the voice of investors. Comprehensive proxy voting guidelines and policies are the table stakes, but influence over the decision making of the company’s board in order to enhance sustainability is the ultimate desired outcome.
Sustainable investing can change the face of SA
The much-publicised failure of corporate governance in certain South African companies has led to significant and impaired losses shared by investors. The improved and focused lens of a disciplined sustainability framework can limit the likelihood of similar experiences in future. As members of the financial services industry, we should take a proactive stance in our commitment to investors and help you better achieve sustainable impact investing objectives.
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Sanlam Investments consists of the following authorised Financial Services Providers: Sanlam Investment Management (Pty) Ltd (“SIM”), Sanlam Multi Manager International (Pty) Ltd (“SMMI”), Satrix Managers (RF) (Pty) Ltd, Graviton Wealth Management (Pty) Ltd (“GWM”), Graviton Financial Partners (Pty) Ltd (“GFP”), Satrix Investments (Pty) Ltd, Amplify Investment Partners (Pty) Ltd, Sanlam Capital Markets (Pty) Ltd (“SCM”), Sanlam Private Wealth (Pty) Ltd (“SPW”), Sanlam Credit Fund Advisor Proprietary Limited, Sanlam Africa Real Estate Advisor Proprietary Limited and Sanlam Employee Benefits (“SEB”), a division of Sanlam Life Insurance Limited and Simeka Wealth (Pty) Ltd; and has the following approved Management Companies under the Collective Investment Schemes Control Act: Sanlam Collective Investments (RF) (Pty) Ltd (“SCI”) and Satrix Managers (RF) (Pty) Ltd (“Satrix”). Glacier Financial Solutions (Pty) Ltd and Sanlam Life Insurance Ltd are licensed financial services providers.
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