Making Sustainability Real: The Model Mandate for Advancing the Sustainable Development Goals
About the event
Taking place online on the 9 November 2022, from 15:30 - 17:00 GMT
The sustainable investing field is under attack. Allegations of greenwashing are taking a bite out of assets and undermining credibility. Regulators are focusing their attention on service providers and sustainability product claims. Politicians are finding electoral value in targeting the investment institutions and the people who have, over the decades, painstakingly built this critically-important approach to investment.
The stakes are high and responding is critical. One effective response will be to ‘make sustainable investing real’ by solidifying commitments in mandate contracts. In this session ICGN will give investment professionals, company managers, asset owners and other governance professionals what they need to know about the practical use of the Model Mandate guidance. Delegates will understand the purpose and benefits of the guidance as well as being able to apply it to scenarios and make it part of their, and their teams, normal working practices.
The course will be delivered in a 90 minute webinar by ICGN’s Sustainability Policy Manager, Robert Walker and ICGN’s Governance and Stewardship Manager, Carol Nolan Drake.
The Model Mandate was first published by ICGN in 2012 and has been updated in partnership with the UN supported Global Investors for Sustainable Development Alliance. The Mandate offers guidance on how to incorporate the UN Sustainable Development Goals into investor stewardship activities. It provides asset owners with example contractual terms to consider when agreeing mandates with asset managers in their efforts to preserve and enhance long-term value.
9 November 2022 - Making Sustainability Real: The Model Mandate for Advancing the Sustainable Development Goals15:30 - 17:00Outcomes
This 90 minute interactive course will cover
Introductions to our course and what you would like to achieve
We will introduce the main objectives of the training module: to help ICGN members meet the growing demand for sustainable investing mandates and ensure that sustainability and stewardship objectives are fully reflected in investment management agreements and contract terms with the managers they have selected to manage their assets.
Crisis? What crisis? Esg/sustainable investing under assault. How the model mandate can address the emerging critiques of esg/sustainable investing
In this section we will:
Provide background on the development of the 2022 document including the joint effort to update the original 2012 document.
Discuss key developments in the evolution of the investment industry over the past 10 years including the rise of sustainable investing and stewardship.
Discuss the more recent and ongoing backlash against sustainable investing including the critiques from Tariq Fancy (formerly of BlackRock), Stuart Kirk (formerly of HSBC), The Economist, Florida’s ESG ban, Texas’ feud with BlackRock, et al and the broader effort to equate ESG with ‘woke capitalism’. We will also discuss the emerging regulatory environment designed to eliminate greenwashing.
Purpose, planning, procedures, and tools for action
In this section we will:
Provide an overview of what’s in the Model Mandate, covering the purpose, structure and how to use it, including customisable clauses that are included as examples.
Explain why there should be an alignment of incentives between asset owners and their managers, leading to a shared understanding of the outcomes being sought by both parties.
Discuss the rise of stewardship codes in key markets.
Reinforce the expectations on asset owners that their stewardship and sustainability objectives are fully reflected in investment management agreements (IMAs) and contract terms with the asset managers they have selected, and provide practical advice.
Clarify how the use of Model Mandate can help asset owners and asset managers meet the requirements of fiduciary duty and long-term sustainable value creation.
We will then provide a closer examination of the main tasks to be undertaken before the RFP and the search process begins, including:
- Fiduciary duty, single, double and systemic materiality drivers,
- Sustainable investing policy development,
- Stakeholder and/or beneficiary engagement.
This section will also cover how SDIs can be implemented:
- Exclusion lists,
- Incorporation of SDI criteria,
- Risk identification,
- Stewardship and positive investments within the context of major SDG themes.
We will also cover such aspects as governance, culture, expertise and resources. Attendees will be asked to identify their primary concerns, their priorities and their preferred approach.
Getting it done: key questions for asset owners, asset managers and service suppliers
Key learnings, questions and conclusion