Columbia Threadneedle Investments enhances its fundamental research with proprietary responsible investment ratings
Columbia Threadneedle Investments enhances its fundamental research with proprietary responsible investment ratings
Columbia Threadneedle Investments is adding to its extensive fundamental research effort by launching an innovative responsible investment (RI) ratings system that combines an assessment of a company’s financial stewardship with a view on how well it manages its Environmental, Social and Governance (ESG) risks. By combining both aspects into a single, forward-looking rating from 1 to 5, the tool reflects Columbia Threadneedle’s conviction that prudent management of financial and ESG factors are important to a company’s ability to create long-term, sustainable value.
The RI ratings tool was created by Columbia Threadneedle’s central research function. Leveraging the latest technology, a cloud-based integrated data framework supports an array of traditional and advanced research tools, allowing over 100 analysts and research associates to dedicate more time to creative thinking, insights and recommendations. A culture of collaboration underpins the research ecosystem and ensures insights are discussed, debated and shared throughout the firm, resulting in original, independent, forward-looking research that drives long-term sustainable returns for Columbia Threadneedle’s clients.
Colin Moore, Global Chief Investment Officer at Columbia Threadneedle said: “As an active manager, we owe our clients a duty to consider factors that can pose a risk to or enhance client assets. We believe that analysis combining financial stewardship indicators with an assessment of how well a company is managing the ESG issues pertinent to its business is key to value creation.
“Fundamental analysis is key to active management and we have built an additive, evidence-based and forward-looking ratings system. It provides our analysts and portfolio managers with further insight into a company’s leadership, governance, culture and operational standards of practice, with a focus on issues that are material to its long-term performance. We believe that our new ratings tool will enhance our ability to evaluate investments on behalf of all our clients.”
The RI ratings tool was developed in conjunction with Columbia Threadneedle’s global Responsible Investment team of 12, headed by Iain Richards, Global Head of Responsible Investment. This team includes experts in RI analytics, ESG research and integration, stewardship and engagement, proxy voting, sustainable outcomes and thematic RI research. Equity portfolio management teams began using this additive research tool in 2018