Alexforbes Investments has published its 2024 Stewardship Report, reinforcing its commitment to responsible investing and sustainability practices. The report highlights the significant strides Alexforbes has made in embedding environmental, social and governance (ESG) considerations into its investment processes.
Through dedicated stewardship and active engagement, Alexforbes aims to drive meaningful change and create long-term value for its clients, members and stakeholders.
Over the 2023/2024 reporting period, Alexforbes conducted 327 formal engagements with asset managers as part of its ongoing stewardship efforts. These engagements spanned 21 managers, covering 30 strategies across eight asset classes, with total assets under management amounting to R6 trillion. These discussions provide critical insights into how asset managers engage with investee companies, ensuring alignment with responsible investment principles.
Gyongyi King, Chief Investment Officer at Alexforbes Investments, said: ‘As sustainability considerations continue to reshape the investment industry, our commitment to responsible investing is central to delivering long-term outcomes. By integrating these factors into our strategies, we aim to not only meet the needs of our customers but also contribute positively to society. This approach aligns with our stewardship responsibilities and enhances our ability to generate sustainable returns through active ownership and collaboration.’
Key highlights of the 2024 Stewardship Report include:
• The Climate change policy
Alexforbes has adopted and launched its first investments and group climate change policies, underscoring the organisation’s commitment to responsible asset ownership and addressing climate-related risks.
• Proxy voting guidelines
The organisation has reviewed and updated its proxy voting guidelines to reflect key priorities and actions for material issues related to sustainability.
• Private markets impact
The report highlights the impact generated by the Alexforbes Investments South Africa Private Markets portfolio, highlighting targeted initiatives that advance environmental, economic and social solutions such as sustainable agriculture, microfinance, renewable energy, and access to affordable basic services like healthcare, housing and education.
• 2023 PRI results
Alexforbes's latest ratings from the Principles for Responsible Investment (PRI) reflect the company’s continued dedication to stewardship and responsible decision-making.
• Group activities
The launch of the Alexforbes Impact Advisory Academy aims to provide forward-thinking sustainability insights, advice and training to retirement funds as well as corporate clients.
• Enhanced reporting
This year’s report presents data on responsible investing, including carbon intensity and diversity metrics, reflecting both local and global allocations within Alexforbes’s core portfolio solutions. When combined with asset class insights, proxy voting details and commentary, this reporting practice is unique.
• Insights
The report highlights the material themes identified by asset managers, addressing short-, medium- and long-term systemic issues that impact investment decisions.
Premal Ranchod, Head of ESG Research at Alexforbes Investments, adds: ‘This report underscores our steadfast commitment to responsible investing and stewardship. Alexforbes remains dedicated to integrating sustainability factors into our investment decisions. With the support of local and global partnerships, we have remained robust and responsive in a changing environment. We take pride in our transparent reporting on key metrics like carbon intensity, leading the industry in this regard.’
Alexforbes believes that its stewardship report is a valuable resource for customers and stakeholders seeking to understand the company’s performance and commitment to responsible investment practices. The report provides a comprehensive overview of Alexforbes's efforts to integrate sustainability considerations across its investment strategies, reinforcing its leadership in responsible investing.
In an industry increasingly focused on ESG integration and transparency, this report not only meets but sets the benchmark for best practices. By providing local, global and asset class- level insights from emerging to established asset managers, it stands out.
For more information, access the full 2024 Stewardship Report here.
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