Focus on ESG

How we incorporate Environmental, Social and Governance factors into our approach to Sustainable Investing.

ESG Investor Diagram

Integrating ESG

What kind of investor are you?

Integrated Funds

Integrated funds

We consider Environmental, Social and Governance (ESG) factors as part of our investment process, and qualify these with ASI ESG House Scores, meaning your investments incorporate ESG risks and opportunities as standard.

50+

Dedicated ESG experts

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PRI

Signatory to UN principles of Responsible Investment

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100%

of researched companies include ESG analysis

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A+ or A

Rating awarded across all categories

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Sustainable funds

Sustainable funds

Our sustainable funds invest in companies with sustainable businesses and that show superior management of ESG factors. With our sustainable funds, we avoid industries like coal or oil & gas that are deemed unsustainable.

View our Sustainable Funds chevron_right

Thematic funds

Thematic funds

We design our thematic funds to help investors benefit from specific responsible investing themes such as climate change and low-carbon technologies.

View our Thematic Funds chevron_right

Impact funds

Impactful funds

Our impact funds invest in companies that provide solutions, products or services that counter environmental and/or social challenges. We align some of our impact funds to recognised standards such as the UN Sustainable Development Goals.

View our Impact Funds chevron_right

Environmental Action

Together… we are tackling the environment crisis

We face interlinked environmental crises, from climate breakdown, extreme weather, and species loss to water scarcity and unsustainable food production. We take action in our operations, but our greatest impact and influence is through how we invest our customers’ and clients’ money.

We are proud to be a signatory of the Net Zero Asset Managers initiative, with a dedicated focus on financing the transition to a low-carbon economy. The adaptation to climate change impacts our products and investment decisions.

Insights

Our Position on…

The Environment | Biodiverstity | | Palm Oil | Water

Learn more on our dedicated page

Environment and Sustainability

Social Action

We are facing many global issues, from inequality and poverty to an ageing population. We want to raise awareness and drive positive change to support fair and inclusive work, equality of opportunity and connect with those isolated from society.

Insights

Our Position on…

Human Rights | Controversial Weapons | Businesses and Human Rights | Labour and employment | Diversity and Inclusion

Learn more on our dedicated page

Social factors
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Governance and Active Ownership

 

Our Sustainable Investing principles. We put Active Ownership and ESG considerations at the heart of:

Integrated funds

our investment process -

we integrate and appraise ESG factors in our investment process, with the aim of generating the best long-term outcomes for our clients

Integrated funds

our client journey -

we clearly define how we act in our clients' interests in delivering our stewardship and ESG principles and transparently report on our actions to meet those interests

Integrated funds

our investment activity -

we actively take steps as stewards to deliver long-term, sustainable value consistent with our clients' objectives

Integrated funds

our corporate influence -

we actively advance policy, regulation and industry standards to deliver a better future for our clients, the environment and society

Through engagement with our investments, and by voting, we seek to improve the financial resilience and performance of investments

View our Engagement and Voting Results open_in_new

Where we believe change is needed, we endeavour to catalyse this through our strong stewardship capabilities.

Read the Stewardship Report open_in_new

As a responsible global investor, we leverage our scale and market position to raise standards in both the companies and industries in which we invest, and help drive best practice across the asset management industry.

View the latest Quarterly Reports open_in_new


Governance and Active Ownership

Considering sustainability risks and factors across asset classes

House scores

Our ESG House Scores

Our ESG house score is designed to shed light on a company’s management of ESG risks.

We designed a proprietary ESG house score to supplement our existing analysis. The system draws on more than 100 internal and external data points from third-party providers while taking into account the factors that we feel are most relevant or important for sectors, regions and companies. to arrive at a single number, or score.

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Active Equities

Our ESG approach to equity investing

We are active equity investors. We believe that deep fundamental research, a disciplined investment process and full analysis of environmental, social and governance (ESG) issues is the most effective way to deliver long-term returns for our clients.

ESG in Active Equity investing

ESG integration in Active Equities (PDF)

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Fixed Income

ESG embedded into Fixed income investing

Consideration of ESG factors is embedded in our fixed income research process. It’s one of the key dimensions, alongside other valuation metrics, on which we assess any company in which we invest. We actively engage with our investee companies, combining information from these meetings with insights from our investment managers, research analysts and central ESG investment team.

Credit ESG Integration Approach

 

ESG integration in Active Equities (PDF)
Multi asset

Multi Asset

ESG embedded into Multi Asset investing

Our Multi-Asset Investment Solutions (MAIS) team manages a wide range of strategies and follows diverse investment approaches. Our ability to integrate ESG varies across our diverse portfolio management approaches. For example, where we use abrdn’s active equity and credit funds, ESG is backed by an extensive Stewardship process and ESG integration is extensive, but where we allocate using derivatives or passive index trackers, the opportunity to integrate ESG can be limited.

ESG embedded in Multi-Asset Investment Solutions (PDF)

Real estate

Real Estate

ESG integration in Real Estate

Driven by our four stewardship and ESG principles, we put stewardship and ESG considerations at the heart of:

  • Our investment process
  • Our investment activity
  • Our client journey
  • Our corporate influence

Dialling-up our integration of ESG into real estate (PDF)

  • House scores

    Our ESG House Scores

    Our ESG house score is designed to shed light on a company’s management of ESG risks.

    We designed a proprietary ESG house score to supplement our existing analysis. The system draws on more than 100 internal and external data points from third-party providers while taking into account the factors that we feel are most relevant or important for sectors, regions and companies. to arrive at a single number, or score.

  • abrdn

    Active Equities

    Our ESG approach to equity investing

    We are active equity investors. We believe that deep fundamental research, a disciplined investment process and full analysis of environmental, social and governance (ESG) issues is the most effective way to deliver long-term returns for our clients.

    ESG in Active Equity investing

    ESG integration in Active Equities (PDF)

  • abrdn

    Fixed Income

    ESG embedded into Fixed income investing

    Consideration of ESG factors is embedded in our fixed income research process. It’s one of the key dimensions, alongside other valuation metrics, on which we assess any company in which we invest. We actively engage with our investee companies, combining information from these meetings with insights from our investment managers, research analysts and central ESG investment team.

    Credit ESG Integration Approach

     

    ESG integration in Active Equities (PDF)
  • Multi asset

    Multi Asset

    ESG embedded into Multi Asset investing

    Our Multi-Asset Investment Solutions (MAIS) team manages a wide range of strategies and follows diverse investment approaches. Our ability to integrate ESG varies across our diverse portfolio management approaches. For example, where we use abrdn’s active equity and credit funds, ESG is backed by an extensive Stewardship process and ESG integration is extensive, but where we allocate using derivatives or passive index trackers, the opportunity to integrate ESG can be limited.

    ESG embedded in Multi-Asset Investment Solutions (PDF)

  • Real estate

    Real Estate

    ESG integration in Real Estate

    Driven by our four stewardship and ESG principles, we put stewardship and ESG considerations at the heart of:

    • Our investment process
    • Our investment activity
    • Our client journey
    • Our corporate influence

    Dialling-up our integration of ESG into real estate (PDF)

Sustainable Investing videos

Key documents