ICG aims to nurture a responsible business culture throughout its own organisation as well as in investments in which it has sufficient influence. This culture is embedded through the development of supportive systems and processes. Over 2022, ICG took some significant steps to ensure it is continuously embedding responsible investment practices in the business.
ESG-linked compensation for all ICG portfolio managers
In 2022, ICG incorporated ESG (environmental, social and governance) assessment into the annual performance appraisals of portfolio managers across the firm. The aim of this practice is to reinforce alignment and accountability at the right levels for achieving ESG excellence, while ensuring we comply with a continued increase in relevant regulatory requirements. It will also position portfolio managers to lead by example, ensuring ESG is being appropriately and consistently considered in their teams’ approaches to investment.
Incorporating ESG into our New Product Approval process
We believe that an enhanced focus on sustainability can be a source of competitive advantage. We seek to integrate ESG considerations into the design of new strategies or funds where their nature allows us to drive better ESG outcomes. This reflects the increased societal need and client demand for funds with strong environmental and social characteristics, and those that support the transition to a net zero economy.
Enhanced ESG practices as well as climate change mitigation and adaptation at a fund level are key considerations in the launch of new strategies or funds. For new relevant strategies or funds where we have sufficient influence, we also seek to align ESG priorities and practices with specific UN
Sustainable Development Goals (UN SDGs) and consider science-based GHG emissions reduction targets that support the goals of the Paris Agreement.
ESG training to be offered to all ICG staff
Comprehensive online ESG training has been delivered to all investment executives, the senior management and the Marketing and Client Relations team every two years for the past six years.
During 2022, ICG has been developing its training programme so it can be delivered to the wider business. Mandatory training will incorporate core understanding of ESG at ICG, while extending the opportunity for more advanced specific knowledge-building for relevant professionals such as investment executives in key topics that relate to their role. Learning pathways can be built upon as users expand their learning in priority topics such as climate change, diversity & inclusion, and governance. The new approach will be rolled out in 2023.
Better utilising ESG data
Since the start of 2022, ICG has partnered with an experienced third-party vendor to develop a dedicated web-based ESG data management platform for the firm. Investment teams can now run ESG data collection processes and analyse the information about their portfolios in a time-efficient and consistent way. The underlying data is a key contributing factor to improving our ESG disclosures to clients.