The S in ESG: Karlijn van Lierop (Columbia Threadneedle Investments)

The S in ESG: Karlijn van Lierop (Columbia Threadneedle Investments)

August 17, 2023

S van ESG ESG
Karlijn van Lierop (foto archief Columbia Threadneedle Investments) 980x600.jpg

This article was originally written in Dutch. This article is an English translation.

By Karlijn van Lierop, Director Responsible Investment, Head of Responsible Engagement Overlay at Columbia Threadneedle Investments

How can investors interpret the S of ESG?

'Social is an important and integral part of our investment, engagement and voting policy. Our starting point in engagement is that companies in which we invest comply with human rights, remedy violations and respect labor rights, in accordance with the UN Guiding Principles and OECD Guidelines. We expect companies to have robust social policies. Themes on which we focus with commitment are human rights, trade union law, slavery, living wage, data privacy, diversity, public health, equality and the 'just transition', the social dimension of our net zero commitment. In addition to engagement, Social is also reflected in, for example, our Social Bonds portfolio, with which we strive for positive social results in addition to financial returns.'

What is the business case for the S?

'Better understanding of the financial materiality of social issues enriches the investment process and can reveal risks and opportunities. An effective framework for mitigating social risks requires thorough due diligence, constructive partnerships with suppliers in the supply chain and good working conditions. Investing in Social can yield social and financial returns. Paying a living income can break the cycle of poverty and prevent child labour. It also contributes to a stable workforce, motivated employees, continuity of processes and less turnover. Attracting and retaining talent and human capital management contributes to innovative strength, increased productivity and agility. These are important considerations for a company's long-term profitability. People and profit go hand in hand.'

 

People and profit go hand in hand.

 

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