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    Sustainability Climbs the Corporate Ladder at abrdn

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    Stockholm (NordSIP) – In announcing the formation of a senior internal Sustainability Group to be led by a newly appointed Chief Sustainability Officer (CSO), global asset management firm abrdn is signalling its commitment to maintaining ESG considerations at the core of its investment processes.  According to Global Head of Public Markets Devan Kaloo, part of the impetus for this move came from the European Union’s Sustainable Finance Disclosure Regulation (SFDR) classification, which has provided a framework for greater transparency in delivering sustainable investment products to meet growing client demand.

    A core role for sustainability

    There has been a growing trend in the corporate world to bring sustainability into the so-called C-suite, with the number of CSOs soaring over the past decade.  Based on analysis by recruitment and research firm the Weinreb Group, the number of CSOs in Fortune 500 companies has risen by 228% since 2011.  abrdn’s new CSO Amanda Young previously held the position of Global Head of Responsible Investment.  Young has made several senior appointments to the Sustainability Group, covering geographical responsibilities as well as areas such as climate strategy, active ownership, sustainability training and ESG integration.  The CSO will report directly into abrdn’s co-CEOs for investments Chris Demetriou and Rene Buehlmann.

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    The Sustainability Group will drive the asset manager’s house view on a range of issues including climate change and stewardship, helping to ensure a consistent approach from the various investment teams.  Young also sees the group playing a key role in abrdn’s engagement with policy makers, regulators and other external bodies.

    Mass SICAV conversion to Article 8 SFDR

    The creation of the Sustainability Group coincides with the conversion of 24 of abrdn’s equity and fixed income SICAV funds to Article 8 under the SFDR guidelines.  While the firm has long sought to favour positive Environmental, Social and Governance (ESG) criteria in its stock selection process, the move to Article 8 status has involved formalising ESG and carbon intensity targets for each fund and broadening the sustainability screening framework.  This move will double abrdn’s assets under management (AUM) in responsible investing related SICAV vehicles, which will stand at approximately €16 billion, including all Luxemburg-domiciled Article 8 and 9 funds.

    Continued evolution ahead

    abrdn expects to continue this process of SFDR conversion over the coming year.  As the firm’s new CSO Amanda Young puts it: “as client expectations continue to focus increasingly on material ESG matters, we must continue to evolve as an active asset manager to provide solutions which meet these expectations”.

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    Richard Tyszkiewicz
    Richard Tyszkiewicz
    Richard has over 30 years’ experience in the international investment industry. He has worked closely with major Nordic investors on consultancy projects, focusing on the evaluation of external asset managers. While doing so, Richard built up a strong practical understanding of the challenges faced by institutional investors seeking to integrate ESG into their portfolios. Richard has an MA degree in Management and Spanish from St Andrews University, and sustainability qualifications from Cambridge University, PRI and the CFA Institute.

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