In November, TIIP added 17 new asset manager profiles to round out our database of asset owners and managers focused on system-level investing, bringing the total number of profiles to 100. TIIP’s database and research portal are gateways into the world of system-level investing for investors. These resources help investors connect with like-minded peers, implement system-focused approaches and benchmark their current initiatives.
In our analysis of asset managers most recently added into the database, we have seen that investors are leveraging their portfolio activities to add value to environmental and societal systems-addressing, for example, the themes of renewable energy, income inequality and financial inclusion and transparency through use of the “intentionality” tools of Additionality, Solutions, and Polity.
Environmental system challenge: Renewable energy
Societal system challenge: Income inequality financial inclusion
Financial system challenge: Transparency
Although dialogue between investors and policy-makers is a long-standing practice, several of the newly added investors, both within the U.S. and abroad, are using the tool of Polity to leverage their market positions to advocate for the consideration of system-level challenges at the policy level. U.S. asset managers, for example, have advocated for improved financial transparency in communications with U.S. Congress and the Securities and Exchange Commission (SEC). Investors such as Cornerstone Capital and Walden Asset Management (download here) have engaged with the SEC urging increased transparency in environmental, social and governance (ESG) disclosures-contending such information is critical for risk evaluation and for acting in the best long-term interests of their clients-and some, like Boston Common Asset Management, have advocated for systemic transparency through the continued implementation of the Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Polity is being used by international asset managers-like Australian Ethical Fund-who are working to bring climate risk and emission disclosure, reporting and target-setting to the political agenda.