Responsible investment (RI) practices contribute to our greater purpose, which is to enable businesses and people from all walks of life to achieve their financial goals and life aspirations.
We help people grow their savings, protect what matters to them and invest for their future.
Momentum Outcome-based Solutions performs an annual RI rating assessment of investment managers to allow us to better understand how far along these investment managers are on their responsible investment journey.
The scope of responsible investment practices is wide, and we have therefore assessed the investment companies’ overall responsible investment framework and the level of transparency confirming their actions.
As supporters of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, it is in our interest to encourage investment managers to adopt a climate change focus for a sustainable and just transition future.
We have included a new question to assess if climate-related risks were acknowledged and evident in the respective investment manager’s policies.
The recently published report by WWF South Africa, ‘The emerging importance of the TCFD framework for South African companies and investors’ emphasised that “Climate change has been described as one of the biggest challenges of our time and the most pressing Environmental, Social and Governance (ESG) issue facing our global society and economy today.
The impact of climate change on organisations is still to be fully understood as both companies and investors grapple with quantifying both the risks and opportunities presented by climate change.”
While our findings show that most investment managers recognise the importance of RI practices, there is still the odd manager who does not have a responsible investment policy or believes that ESG integration is only possible in the listed equity space.
During our annual RI rating assessment process, we use this as an opportunity to engage with the investment managers and bring them along with us on the RI journey.
We give recommendations to the investment managers that we believe will positively contribute to their responsible investment practices.
Through our involvement with the Association for Savings and Investment South Africa (ASISA), our support for the Code for Responsible Investing in South Africa (CRISA), being a signatory to the United Nations-supported Principles for Responsible Investment (PRI), and supporter of the recommendations of the TCFD, it is important to us to encourage other investment managers, service providers, asset consultants and investment owners to apply RI practices in their daily operations.
Click below to download the full report.
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