The Academy is committed to investing its funds in a socially responsible basis. The Academy believes
that to accord with its values when investing its funds, regard must be made to Environmental, Social
and Governance (“ESG”) issues.
The Academy has identified two sets of principles which accord with its values and aspirations in this
area, one relating to the operations of its fund managers and the other to setting appropriate
standards for all its investments.
Firstly, The United Nations Principles for Responsible Investment: these six principles have been
developed, inter alia, to “better align investors with the broader objectives of society”. The Academy
therefore expects that its fund managers will be signatories of the UNPRI and follow its principles in
the way it operates.
Secondly, The United Nations Global Compact: the Academy also supports the ten principles of the
United Nations Global Compact, which stem from the acceptance that, as with the Academy itself,
corporate sustainability starts with an entity’s value system and a principled approach to the way it
operates. This means operating in ways that, at a minimum, meet fundamental responsibilities in the
areas of human rights, labour, environment, and anti-corruption.
In managing its investments, the Academy therefore expects its appointed investment managers to
encourage good behaviour and discourage poor behaviour through the screening of investments
(using the principles above or an equivalent framework) and through the direct engagement with the
companies in which they invest. In doing so, they should promote sustainability, good business ethics,
good employment practices and the transition to a low carbon economy.
While operating in accordance with the principles set out above and the exclusions set out in section
4, appointed investment managers are left at their own discretion to select individual stocks and
investments and to operate within their own socially responsible investment policies.
The Academy invests in certain investment strategies through pooled funds, where individual
investors have no direct influence on the investments within the fund. The benefits of such
investments may include access to illiquid asset classes through liquid investments or exposure to a
more diversified range of underlying assets in the most cost effective way.
In selecting pooled funds or similar vehicles, the Academy will take account of these funds’
compatibility with the principles and exclusions set out in this Policy and seek to minimise indirect
investment in companies that fall within the exclusions of this Policy wherever there is scope for this
requirement to be accommodated.
In selecting pooled funds or similar vehicles, the Academy will take account of these funds’ compatibility with the principles and exclusions set out in this Policy and seek to minimise indirect investment in companies that fall within the exclusions of this Policy wherever there is scope for this requirement to be accommodated.