- Acadian is a Principles for Responsible Investment (PRI) signatory. Click here for our Transparency Report.
- Acadian has signed on to the Net Zero Asset Managers initiative, Climate Action 100+ and is a supporter of TCFD.
- Acadian is a member of the Investor Alliance for Human Rights and Investors Against Slavery & Trafficking.
- We are an active member of ESG Research Australia (Acadian Australia) and have been recognized as a Responsible Investment Leader 2021 by the Responsible Investment Association of Australasia.
The Benefits of a Systematic Approach
Objectivity - It is well known that there is a relatively low correlation across the major data vendors’ ESG ratings highlighting subjectivity and measurement error. A systematic approach based upon empirical evidence overcomes these concerns.
Proprietary signals - Our investment team includes experts in machine learning, data science techniques, and alternative data to create forward-looking material ESG signals. We do not use ‘off-the-shelf’ scores within our investment process.
Financial materiality - We pay careful attention to the formulation of ESG signals across sectors, regions, and time based upon their efficacy.
Disciplined investment decisions - A key strength of our process is the ability to weigh the relative importance of ESG metrics alongside company fundamentals.
The ESG themes within our investment process are characterized by three conviction topics – Energy Transition, Employee Well-Being, and Management Long-Termism.
Our dedicated Responsible Investing team partners with clients to understand their sustainability preferences and investment goals. Recent examples include implementing dynamic decarbonization constraints to align portfolios to Net Zero pathways.
Acadian is committed to understanding the sustainability themes within the companies we invest, engaging on issues to identify potential risks and opportunities.
Our choice of engagements is designed to align to the conviction themes within the investment process.
To view our Responsible Investing Statement, please click here.
To view the Sustainable Finance Disclosure Regulation (SFDR), please click here.
To view our Modern Slavery Statement, please click here.
ESG investing through a quant lens
We consider utilities’ impact on the carbon intensity of global benchmarks. In more recent periods, low volatility managers have looked to other, more effective diversifiers to reduce portfolio risk. However, as the outlook for utilities improves and investor demand returns, decarbonization efforts will require prudent deliberation and sophisticated methods to balance decarbonization priorities and risk-reward objectives. Link below for the full piece.Read More
We highlight potential environmental policy changes in the U.S. under a Biden administration. Given the uncertainty that remains, particularly with yet-to-be-resolved Congressional leadership, we also discuss the importance of a nuanced and dynamic approach to incorporating the impact of environmental policy change when it occurs.Read More
While there is no global price on carbon today, we observe that market participants are implicitly applying a carbon tax on high-emitting companies across the globe, albeit at varying rates.Read More
We believe that certain ESG considerations influence corporate success and investment performance, but amid relentless hype and pressure to participate, many approaches have been brought to market that are based on imprecise foundations and rudimentary implementations.Read More