Understanding impact as the third dimension of asset management, alongside risk and return, is key to assessing the long-term prospects for scheme portfolios, Schroders says.
In an exclusive video interview with Professional Pensions, Schroders head of sustainability strategy Hannah Simons spoke to PP editor Jonathan Stapleton about where we are today with sustainable investing and how the events of 2020 have marked a watershed when it comes to thinking about the topic.
The interview asked what role the asset management industry has to play in helping trustees deliver a more sustainable future for their schemes and looked at what are the investment opportunities for pension funds looking to invest sustainably and how can trustees see the impact their investments are having - looking particularly at the issue of quantifying impact risk.
Sustainable Investment Festival
Hannah Simons is one of the speakers at this year's Sustainable Investment Festival, which is being held virtually on 22-25 June.
Her presentation on day two of the event (Wednesday 23 June) will look at this issue of achieving sustainable investment goals through quantifying impact and transparent reporting.
In this session, Simons will demonstrate how understanding the impact companies have on society and the planet is fundamental to understanding long-term prospects for portfolios.
She will look at how investing is now more than the relationship between what risk you take and the return you expect to receive - assessing how a third dimension, impact risk, has emerged.
In the presentation, Simons will also look at how this impact risk can be quantified in financial terms and how asset managers can demonstrate and report on this to help schemes meet their governance objectives and sustainability goals.
Register for the Sustainable Investment Festival and view the full programme here: www.sustainableinvestmentfestival.co.uk