This document sets out the Sustainability Policy for Cardano as it relates to our business whether delivered through our Cardano, Lincoln Pensions or NOW: Pensions businesses.
Sustainability investment beliefs
This document sets out Cardano’s sustainable investment beliefs. These beliefs act as a foundation upon which our investment philosophy and processes are built and serve as a blueprint for future investment policy development.
Sustainable investment policy
This document relates to our investment portfolios and sets out how we integrated ESG issues and real-world sustainability impact into our investment decision-making, stewardship and policy engagement.
This document sets out how Cardano Risk Management Limited promotes and monitors the shareholder engagement activity of managers that are included in the portfolios that Cardano advises on and manages on behalf of clients.
Sustainability Policies and Disclosures
Sustainable Investment Policy
Cardano incorporates environmental, social and governance (ESG) risks and opportunities into all our investment analysis, decisions and advice. Empirical and academic evidence demonstrates that incorporating ESG risks leads to superior risk adjusted returns. ESG risks and opportunities impact investment strategies in different ways. Cardano incorporates the assessment of ESG risks and opportunities into all our investment activities, with a focus on the strategies for which ESG risks and opportunities have the highest potential impact. For more information on how Cardano assesses, monitors and manages ESG risks and opportunities please see the Cardano sustainability policies above.
Cardano supports the aims of UK and EU policymakers in financing sustainable growth. The Cardano sustainability policies reflect that sustainability is a dynamic concept; with fast-evolving policy change, technology change, and corporate and investment practice. We set out our approach to sustainability through our policies, which will be periodically updated to ensure Cardano is at the forefront of sustainability innovation. In addition, Cardano is developing its approach to positive real-world sustainability impact. This is an emerging area of work in the financial industry, and we encourage feedback from our clients, managers, counterparties and NGOs and we will support industry initiatives to develop meaningful principal adverse impact disclosures.
An explanation of the Cardano Approach to Responsible Investment for each asset class, based on the assessed impact of ESG risks and opportunities on returns can be accessed here.
Engagement and stewardship
Stewardship is the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society. Once capital has been allocated by asset managers, oversight is achieved through engagement with investee companies which improves corporate governance and drives ongoing stewardship. Cardano Risk Management Limited is a signatory to the Financial Reporting Council Stewardship Code which sets out principles for effective Stewardship. The below report sets out how Cardano Risk Management Limited applies the Code.
The Engagement Policy sets out how Cardano Risk Management Limited promotes and monitors the shareholder engagement activity of managers that are included in the portfolios that Cardano advises on and manages on behalf of clients. This has been produced in line with the requirement of chapter 2.2B of the Conduct of Business Sourcebook of the Financial Conduct Authority Handbook (Shareholder Rights Directive Requirements).