Sustainability beliefs to action: Conversations with investment practitioners around the world

A conversation with Lucy Thomas and Leon Kamhi

We hosted a webinar on 21 June 2019 which looked at framing the big issues in sustainability. Roger Urwin hosted a panel discussion and tried to answer some key questions.
Panellists: 

  • Lucy Thomas, Head of Investment Stewardship – NSW Treasury Corporation (TCorp)
  • Leon Kamhi, Executive Director: Head of Responsibility – Hermes Investment Management

Episode 1. Framing the big issues in sustainability

As investors, we rely on generating our returns from the market place, the economy, the society, and the environment that we invest in. If we don’t take care of our impact on [those], we inhibit our own ability to generate returns from those systems. This is where responsibility comes in… an awakening that this is part of fiduciary duty.

Lucy Thomas, Head of Investment Stewardship – NSW Treasury Corporation (TCorp)

In this first section of our webinar on sustainability ‘beliefs to action’, our panellists discuss topics such as:

  • Overlapping terms within sustainability 
  • How asset owners and asset managers view sustainability in the context of fiduciary duty
  • Trends in the market’s approach to ESG and sustainability

Episode 2. Stop being a lazy landlord! Focus on good stewardship

It is a duty and responsibility of universal owners to do [good] stewardship. In fact, if one is purely in passive, it is the only way to create value. Otherwise you are just a cost-management shop.

Leon Kamhi, Head of Responsibility – Hermes Investment Management

In this second part of our webinar series on sustainability ‘beliefs to action’, our panellists discuss questions such as:

  • What does good stewardship look like
  • How can investors make a difference
  • Contributing to a better system – the role of universal owners. 

Episode 3. Integrating ESG in investment portfolios

I feel equally puzzled when people talk about financial and non-financial factors. Some traditional financial factors are not necessarily valuation metrics – they can be things that have just been long known to have an impact on value creation over time. There has got to be closer integration.

Lucy Thomas, Head of Investment Stewardship – NSW Treasury Corporation (TCorp)

In this third part of our webinar series on sustainability ‘beliefs to action’, our panellists discuss questions such as:

  • How well ESG integration is executed in investment portfolios 
  • Do exclusions work
  • Should investment organisations take more responsibility for the impacts of their investment decisions.  

Episode 4. Measuring impact and the role of the sustainable development goals (SDGs)

The SDGs have to be specific to your context. We need to be wary of what’s now being called rainbow washing – when people say that they’re doing something, they need to follow through.

Leon Kamhi, Executive Director: Hermes Investment Management

In this third part of our webinar series on sustainability ‘beliefs to action’, our panellists discuss:

  • The purpose of investing
  • How their organisations measure the impact of their investments
  • Using the SDGs within their reporting frameworks.  

Episode 5. Where next? If I could change one thing…

The 4-3-2-1 PIN code is a Thinking Ahead Institute impact framework that describes the influence of different entities – 4 units for public policy, 3 units for corporations, 2 units for asset owners, 1 unit for the individual… We are smarter and more effective working together than on our own. We need to make better connections.

Roger Urwin, Global Head of Investment Content, Thinking Ahead Institute

In the final part of our webinar series on sustainability ‘beliefs to action’, our panellists discuss what the next 5-10 years may look like for the investment industry.