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Our approach to Sustainability

Sustainability is at the core of our culture and how we run our business. We approach sustainability from first principles. We are sustainable investors above all because we are convinced it is the right thing to do.

Our clients are overwhelmingly pension schemes. Their members and beneficiaries represent a broad swathe of society in the UK and Europe across industries, income levels, age groups and cultural and ethnic backgrounds.

The youngest members of these schemes may be over 50 years away from retirement. Many of them will have families who will live into the next century. We believe that our clients’ members and their dependents should enjoy a quality of life similar to or better than that possible at present. This should be in a sustainable and less polluted environment and within a fairer society where they can enjoy financial security.

Annual Sustainability Report

Progress, Passion and Pride: Our 2022 Sustainability Activities

This report outlines our sustainability highlights from across the Cardano Group over the past year  – our investments, our work with clients, and the themes at the heart of our approach.

Annual Stewardship Report

The UK Stewardship Code

The UK Stewardship Code sets high stewardship standards for those investing money on behalf of savers and pensioners, and those that support them. We are delighted to have retained our signatory status for another year.

 

Our report outlines our stewardship approach across the Cardano Group and covers the following topics:

  • Purpose and Governance
  • Investment approach
  • Engagement
  • Exercising Rights and Responsibilities

Net Zero Investment Consultants Initiative

Progress Report 2023

Cardano is a founding signatory of the Net Zero Investment Consultants Initiative. Signatories to the initiative commit to nine principles around Net Zero. We are pleased to have published this report outlining our progress for CRML.

More than just the right thing to do

We believe we can contribute to the transition towards a sustainable society in the way we invest and steward our clients assets. Apart from being core to our corporate values and right for our business, our society and our world, there are other, compelling reasons for investing sustainably:

  • we believe incorporating Environmental, Social and Governance risk assessment leads to better risk-adjusted outcomes in the long term;
  • it can help uncover new investment opportunities;
  • and it allows us to anticipate and prepare for regulatory and policy change.

 

We incorporate environmental, social and governance (ESG) risks and opportunities into our investment analysis, decisions and advice, by focusing on where this can be most impactful.

Making a difference

We believe that sustainable investing can contribute to more sustainable capital markets – and the transition towards a sustainable society. We focus our resources where we are passionate, knowledgeable and can have an impact. Our priority themes are:

  • environmental: operating within planetary boundaries means tackling climage change, biodiversity loss, sustainable water use the management of materials and waste as we transition towards a circular economy.
  • the provision of social foundations including basic needs, promoting a fairer society and strong governance.
  • developing sustainable emerging markets.

 

By assessing the real-world contribution of our investments to the transition, we better understand the risks and opportunities associated with the transition to a more sustainable society. Our Sustainability Investment Policy sets out our approach in more detail.

Climate Crisis

The climate crisis is one of the most fundamental challenges confronting the global economy. The climate crisis refers to global warming and the resulting increase in weather events driven by the emissions of greenhouse gases. We support the goals of the Paris Climate Agreement to limit global warming to 1.5°C above pre-industrial levels. We do this by committing our investment portfolios to net-zero carbon emissions by 2050, with ambitious interim targets.

A fairer society

Our overriding corporate goal is ‘fair pensions for everyone’. We wish to achieve financial security in old age for pension fund members in an equitable and safe society. We are exploring ways to improve society in the United Kingdom and in the Netherlands, to foster diversity and inclusiveness, and to improve the well-being and financial security of pension fund members and their families. We respect and support human rights and seek to avoid human rights abuses.

Sustainable Development in Emerging Markets

We support the sustainable development of nations in the emerging world, where impactful change can be most meaningful and who are most vulnerable to the effects of climate change transition. We support capital flows to private impact investment opportunities in the emerging markets, where we believe impact investors can create the most real-world impact per pound invested. We can support clients with research, third party manager selection and segregated mandates in this area.

Our plan to address the climate crises

The climate crisis is one of the most fundamental challenges confronting the global economy.

Women in bubble looking over green and city

We invest sustainably, here’s how

We believe that our clients’ members and their dependents should enjoy a quality of life similar to or better than that possible at present. Therefore we seek stable, predictable and sustainable returns. We believe our approach to investment can contribute to the transition to a more sustainable society. In our sustainable investment policy here, we set out our beliefs in detail.

The Climate Crisis is a Water Crisis

The rapid depletion of the world’s water supplies represents a major risk to investors and portfolio companies. We are committed to working towards water neutrality in our own portfolios and supporting our clients in playing their part. Water neutrality means that businesses in water-scarce areas consume no more water than nature can replenish.

We invest sustainably. Our approach is investment-led, grounded in science and ambitious. We focus on where we can practically make a difference.

Keith Guthrie – Head of Sustainability UK

Policies

Here you will find all our policies regarding sustainability including our Sustainable Policy and our Corporate Sustainability Policy.

Annual Sustainability Report

This report outlines our sustainability highlights from the past year – our investments, our work with clients, and the themes at the heart of our approach.

Public Policy Consultations

Here you will find all our Public Policy Consultations.

 

 

Our partners

Our partners: IIGCC - Climate Action 100+ - PRI - The Green Bond Principles - Diversity Project - Cadano Development - The Social Bond Principles - Net Zero Managers Initiative - PCAF