For most AFM members, 2022 was very much a year when many agreed and outlined their ESG / sustainability frameworks with regards to investment portfolios and broader business objectives. A lot of attention has typically been focused around climate risks, however, following RLAM’s recent ‘AFM investment survey 2022’, whilst the most prevalent ESG risk being integrated was indeed climate risk it is important to highlight that corporate governance, diversity and inclusion and social impact was also identified as being key areas.

We expect AFM members to continue building out their sustainability frameworks over 2023 and looking to evolve objectives beyond the ‘E’ part of ESG with more of a focus on the ‘S’ and ‘G’ given the mutuality DNA. RLAM’s Georgina Chiu (ESG Engagement Manager) and Sophie Johnson (Corporate Governance Manager) share insights in relation to how RLAM considers and integrates the ‘S’ and ‘G’ within its investment solutions and possible areas of focus for AFM members in evolving their investment portfolios to effectively integrate these areas.