ESG & Impact
Responsible Investing
Whilst an investment firm foremost, Cordiant also has a longstanding commitment to the integration of environmental, social and governance measures into its investment processes (the firm became a signatory of the United Nations’ Principles for Responsible Investment in 2008).
An early mover in the world of impact investing, Cordiant invests in inherently impactful sectors that support the UN Sustainable Development Goals (SDGs) and has embedded impact analysis into its review of prospective opportunities. Cordiant was a founding signatory of the Impact Principles and completed its first external impact audit in 2021. Cordiant has run specific impact mandates for clients, including KfW / the Federal Republic of Germany and the Government of Canada.
Our view
ESG and impact form a central pillar of Cordiant’s investment approach, that combines sustainability and responsibility with profitable investment. Having long recognised the material impact of sustainability factors on investment returns, Cordiant is committed to understanding the challenges and identifying the solutions that may foster the quality of its investments.
Cordiant views ESG risk management and impact generation as two parallel and complementary concepts. Through the implementation of effective ESG processes, Cordiant seeks to identify and address material sustainability risks in relation to investee companies. Whilst through Cordiant’s ‘Theory of Impact ‘ specific positive environmental and social benefits are targeted and combined with commercial goals.
Our approach
Through Cordiant’s sector-led approach, investments can be made in companies which have inherent benefits that are critical to the modern world. With the addition of Cordiant’s sector expertise, beneficial outcomes are being targeted and potential sustainability risks can be mitigated.
Cordiant bases its approach to ESG around three key lynchpins: Screening, Management and Tracking. These guides the identification, mitigation or minimisation efforts and on-going monitoring of sustainability factors throughout the investment process. Engagement, and an open dialogue is critical to effective, responsible investment. Cordiant uses a collaborative, active, and ever-evolving approach that can provide investee companies with guidance to improve sustainability practices and achieve optimal development outcomes.
Signatories and Commitments
Cordiant has a history of advocating and practicing responsible investment and impact investing. This commitment to integrate sustainability into investment processes is underscored by the adoption and implementation of principles and frameworks of internationally recognised networks and organisations. Cordiant is a signatory to the UN PRI, the Impact Principles and a member of both the Global Impact Investing Network ‘GIIN’ and the Canada Forum for Impact Investment and Development ‘CAFIID’. As part of its efforts, Cordiant supports collaborating within these networks to gain and share knowledge in a landscape that is continuously evolving.
Understanding the realities of each of its focused-sectors is critical to take the right and appropriate actions and for contributing to positive impact. For this reason, Cordiant is a signatory of the Cerrado Manifesto, thus committing to halting forest loss associated with agricultural commodity production.
