Responsible Investing – Creating Positive Environmental Impacts And Investment Returns

[ R ] ESPONSIBLE INVESTING

Climate change and population growth are the two most pressing issues for the environment and the society. As such, effective risk management and delivering sustainable long-term benefits have become top priority of numerous organizations. The concept of responsible investing has been steadily gaining steam as companies from all over the world are investing in related projects, creating massive opportunities for investors.

Source: PRI 2019 - A Blueprint for Responsible Investment

What is Responsible Investing?

According to the UN’s PRI – A Blueprint for Responsible Investment, incorporation of
environmental, social and governance (ESG) factors into investment decisions boosts
the sustainability of the society and the environment.
This approach could better manage risks and enhance potential investment returns,
benefiting both the global financial system as well as the environment and society as a whole.
New investment opportunities are emerging as more organizations opt for sustainable business models.

Source: PRI 2019 (PRI: Principles for Responsible Investment)- A Blueprint for Responsible Investment, AllianceBernstein (“AB”).

RESPONSIBLE
INVESTING

Responsible Investing: Commitment Takes Action

Over the years, AB has integrated ESG factors into our investment decisions and being actively engaged in ESG-related issues.
This is AB’s commitment to responsible investing and corporate responsibility mission.

Dedicated Professionals Supporting Responsible Investing Initiatives

Equity Analysts

Fixed Income Analysts

Responsible Investing Steering Committee Members

Responsible investing personnel numbers as of 31 December 2019. Number of analysts as of 31 December 2019.
Some responsible investing professionals are also members of the Responsible Investing Steering Committee and/or Proxy Committee. Source: AB.

Signed UN PRI
in

2011

Companies Evaluated
on ESG Criteria Over

4000

Company Management
Meetings Participated Nearly

10000+

Assets Managed using
ESG Integration Approx. US$

450 bn

Source: AB, as of 30 June 2020

Unwavering Commitment to Responsible Investing

As of 31 March 2019. *Response to the UK Stewardship Code is updated periodically, most recently in September 2016. Source: AB

UN PRI

Received A or A+ UN PRI ratings in 2019 for 6 of the 9 strategies in which AB invests

Label ISR

Awarded Label ISR In February 2019 for Sustainable Global Thematic Portfolio and Sustainable US Thematic Portfolio

ICGN

Shortlisted for Stewardship Disclosure Award by International Corporate Governance Network (ICGN)

Three Pillars of Action:
Building A Sustainable Portfolio

AB integrates ESG factors into its investment research process, and actively engages in ESG issues of the companies it invests in. With AB’s expertise and responsible investing strategies, it builds sustainable solutions for clients, while creating a positive social and environmental impact.

Thematic Asset Allocation

Identifying secular growth trends while recognizing misalignments, excluding areas like armaments and tobacco that do not support sustainable development.

ESG Integration

Incorporating ESG factors into every aspect of investment research process – third-party ratings are being consolidated with internal views.

Active Ownership

Implementing a robust internal proxy voting policy, while actively engaging with management of portfolio companies on ESG issues.

The above is based on UN’s Principles for Responsible Investment (PRI). Source: PRI, “Sustainable Goal-Based Investment Case Studies”, AB, as of 30 June 2019.

ESG Integration in All Aspects of Activities at AB

AB HAS A RANGE OF SUSTAINABLE INVESTING SOLUTIONS

Sustainable Global Thematic Strategy

Identifying sustainable investment themes around the world.

Sustainable US Thematic Strategy

Targeting at sustainable opportunities in the US.

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