Our Services

ESG and Responsible Investment Service

TMP 1 in the 2021 CIPFA Treasury Management Code of Practice states that in managing risk, an authority’s credit and counterparties should set out its policy and practices relating to environmental, social and governance (ESG) considerations but recognises that ESG is an evolving area.

Arlingclose’s ESG report on will focus on ESG developments and themes in 2021 and 2022 and the ‘direction of travel’ for ESG investments. It will assist officers and members consider and debate ESG priorities for treasury investments.

The Arlingclose ESG and Responsible Investment Service helps local authorities navigate the ESG complexities for treasury investments while remaining prudent custodians of public monies.

Arlingclose’s Suite of ESG funds, refreshed semi-annually, will provide analysis on funds which have ESG, sustainability or responsible practices as an integral part of their objectives, in theory going beyond the integration of ESG risk analysis, which is a standard part of most funds.

This may include funds that screen out certain sectors or look to provide environmental solutions or support social best practice or are ‘impact’ funds. The funds will also have some focus on income distribution (many strategies in this space have a capital growth or total return bias.)

 

The ESG report includes:

  • ESG relevance scores (or equivalent) from rating agencies, where available, for lending list counterparties,
  • Disclosures by the managers of the Authority’s strategic funds in their latest UN Responsible Investment and Climate Transparency Reports released in autumn 2022 and their assessment scores,
  • Interim commitments/targets by managers who are signatories to the Net Zero Asset Managers’ Initiative,
  • Recent environmental and/or social stewardship undertaken by the managers.
  • Up to half day’s assistance with developing a draft ESG and Responsible Investment Policy for member discussion/approval
  • Workshops on ESG and Responsible Investment

If you are interested and would like more information on the service, please contact: Phiroza Katrak on pkatrak@arlingclose.com or contact treasury@arlingclose.com