CNS-Responsible-Investing 2024 - Flipbook - Page 14
RESPONSIBLE INVESTING
ESG integration
At Cohen & Steers, we recognise that material ESG factors contribute to long-term investment
performance, in昀氀uencing both risks and opportunities across asset classes. This understanding
informs our comprehensive, sector-speci昀椀c approach to ESG integration, ensuring that
environmental, social, and governance considerations are embedded into investment decisions
in a way that aligns with 昀椀nancial and strategic objectives.
Our Process
We review a company’s key ESG factors in the context
of the speci昀椀c dynamics of its industry and asset class.
Our deep sector expertise, combined with the frequency
and quality of our company interactions, enables
us to assess management credibility and strategic
direction with a high degree of insight. We evaluate
ESG considerations through the lens of both risks and
opportunities, incorporating these insights alongside
third-party data to help shape our view of a company’s
fair value. This view, when compared to market pricing,
informs our assessment of the security’s relative
attractiveness and may lead to adjustments in portfolio
positioning.
Continuous Improvement
We believe ESG factors are critical in providing full
transparency into company operations and spending.
We view companies that embed ESG considerations
into their strategy and operations as better positioned
to create long-term shareholder value and riskadjusted returns.
In recent years, we have taken a more systematic and
data-driven approach to responsible investing across
our listed equity and 昀椀xed income strategies. This
includes enhancing our proprietary ESG scorecard,
continued focus on relevant proxy topics, and the
integration of engagement and proxy voting into our
broader investment responsibilities as part of our active
ownership approach. Looking ahead, we will continue to
strengthen our ESG integration process from the ground
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COHEN & STEERS | RESPONSIBLE INVESTING
up by systematically ingesting and normalizing new
昀椀nancially-relevant ESG data to enhance the consistency
and breadth of our assessment approach.
We will also continue thematic research such as climaterelated analysis, including carbon transition, physical
risk, and scenario planning, and applying these insights
across our investment process.
ESG Integration Policy
Cohen & Steers’ ESG Integration Policy is grounded in
our belief that ESG factors can in昀氀uence long-term value.
While our framework applies across strategies, our
analysis is tailored to each asset class and industry. We
assess management credibility, strategic alignment, and
ESG risks and opportunities using company interactions
and third-party data to inform our investment decisions.
In addition, we have the ability to screen investments for
sustainability-related characteristics upon client request,
aligning portfolios with speci昀椀c values or mandates.
Environmental and social factors require a sectorspeci昀椀c lens, enabling consistent peer comparisons.
Integrating these insights into analysis, portfolio
construction, and risk management ensures a consistent
application of ESG practices across geographies and
strategies. The application of this approach may
vary across asset classes, re昀氀ecting the nature of our
investments, as detailed in our Listed Real Estate,
Infrastructure, Preferred Securities, and Natural
Resource Equities strategies.
