Aon, the global professional services firm, has launched an enhanced responsible investment solution, RI-360i, which provides institutional investors with better insights into their portfolios and enables them to make better decisions.
This includes effective risk management as well as alignment with goals and ambitions such as net zero, it said in a statement on 21 March.
Aon’s Global Pension Risk Survey 2023/24, which surveyed 204 UK defined benefit pension schemes of all sizes, highlighted the increased attention being paid to financially material risks. The survey also highlighted that 49 percent of schemes were not aligned with the values and ambitions of sponsors, such as net zero – representing potential reputational risk.
Craig Campbell, senior responsible investment consultant at Aon, said: “Sustainability issues represent financial risks for investors. The ability to track and monitor these issues is key to preserving asset values and delivering ambitions. As investors navigate new forms of volatility, heightened regulatory and public scrutiny also bring reputational risks.
“In line with their values and ambitions, many asset owners have established specific responsible investment goals and priorities. With that, there is now a need for a clear and concise overview of investment portfolios and how they compare with where stakeholders want to get to. Aon’s RI-360i enables investors to embed their values and goals into portfolios by providing better insights about the sustainability issues, including climate-risk that may exist with their investments.”
Lucas Higginson, associate consultant at Aon added: “RI-360i enhances active ownership by guiding asset owners on how they can engage with their investment managers, as well as highlighting where they might need to look for better alternatives if they are to reach their climate and sustainability objectives.
“Ultimately, stewardship, active ownership and engagement provide opportunities to preserve and enhance the value of assets.”
