Responsible investing is intelligent investing

Whether you are targeting responsible investing to align with personal or stakeholder values, to mitigate risk or to comply with regulation, you want to choose a solution with real integrity and impact.

We reflect what matters most to you and your investment goals through a robust, integrated process.

Russell Investments believes a sound awareness of environmental, social and governance (ESG) factors and a robust process can help deliver strong investment returns and meet objectives over the long-term. To reflect this, we have developed a set of four beliefs upon which our responsible investing practice is founded.

 

 

1
 
ESG factors impact security prices. These factors can vary by company, industry, and region and their importance can vary through time.
2
 
A deep understanding of how ESG factors impact security prices is value-adding to a skillful investment process.
3
 
Embedding ESG considerations into a firm’s culture and processes improves the likelihood of prolonged and successful investing.
4
 
Active ownership of securities is an effective tool for improving investment outcomes.

Our approach to responsible investing

Responsible investing is integrated into all areas of our business:


Portfolio management process

Translating your values into investment returns

We research and rank thousands of investment products on their ability to add value to portfolios, and we integrate an ESG score into the manager ranks. As such, all manager reviews include an assessment of how ESG is implemented within the investment managers’ policy, process, awareness and offering. We also regularly survey managers and calculate our funds’ ESG and carbon metrics for use by our analysts and portfolio managers.

View responsible investing solutions

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Insights and research

Looking actively towards the future

Our research actively looks towards the future. To understand how best to add long-term value for clients, we evaluate manager products both on an individual basis and an industry basis. We advocate for best practices in specialized products such as low-carbon portfolios, governance-driven strategies, green bonds and impact investing. This helps to continually improve our own product offerings in these areas and strive to offer best-in-class strategies.

Our recent research includes:

Materiality matters: Targeting the ESG issues that can impact performance.
Decarbonization 2.0: A sustainable investing solution for the energy transition.

Stewardship and active ownership

Part of the value creation process

Russell Investments believes voting is a part of a share’s value-creation process. We aim to improve the long-term investment outcomes of assets through our active stewardship and voting policy by promoting four core principles: transparency, accountability, independence and long-term value. As stewards, we monitor the effectiveness of company management on an ongoing basis. As shareholders, we aim to exert influence on corporate governance, social and environmental practices through our votes.  

Enhancing shareholder value through active ownership.

Enhancing shareholder value through active stewardship

Industry collaboration

Looking actively

As a result of our integrated approach, the United Nations-backed Principles for Responsible Investment (PRI) awarded us an A+ in 2017. We provide education throughout the year and are involved with advising governments and industry bodies around the world. As part of this, we are members of numerous industry associations such as the Global Carbon Disclosure Project, the Institutional Investors Group on Climate Change and the Investor Group on Climate Change. 

Russell Investments and the United Nations-backed principles for responsible investment
Read the 2017 Assessment Report
Read the 2017 Transparency Report

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