The concept of responsible investing has evolved significantly since the then United Nations Secretary-General, Kofi Annan, brought together some of the world's largest institutional investors, which led to the development of the Principles for Responsible Investment (PRI), which were officially launched in April 2006. Since then, the PRI has grown to encompass over 5,000 leading asset owners, global investment managers, and service providers.
Understanding Responsible Investing
Responsible investing incorporates a range of approaches and philosophies, often associated with acronyms such as ESG (Environmental, Social, Governance) and SRI (Socially Responsible Investing), and includes terms like "Ethical", "Sustainable", and "Social". Despite the different terms, the core principle is investing in a way that prioritises positive outcomes for society and the environment when generating good financial returns.
At GA Capital, we recognise that responsible investing is not just a trend but an approach to investment management that extends to integrating responsible investing practices into our strategies to ensure our clients' portfolios align with ethical standards and sustainable practices.