BBL Asset Management and Wellington Management, a leading global fund manager with more than US$1.4 trillion in assets under management and long-standing expertise in sustainable investment, signed a "Sustainability Partnership Agreement" that expands the scope of cooperation between the two parties. Key aspects of the agreement include transfers of knowledge, investment experience, perspectives and concepts by Wellington's fund managers and analysts in the company's headquarters in Boston, USA, and major cities around the world, including London, Shanghai and Australia.
"BBLAM recognises the importance of instilling sustainable practices in corporate culture in accordance with the direction and goal of practicing socially responsible business," commented Mr. Peerapong Jirasevijinda, Chief Executive Officer, BBL Asset Management Co., Ltd. (BBLAM). "Focusing on sustainable investment and adhering to strict ESG principles creates the best investment value for customers. We believe that businesses that take sustainability seriously will give get returns in the long run."
"Today, the world faces several major risks that can significantly impact the operations and performance of listed companies, not least the climate change leading to intensifying natural disasters such as floods, forest fires and droughts. Consequently, these conditions force businesses to spend considerable funds on mitigating climate transition risks such as the shift from fossil fuels to clean energy. Seeing the importance of ESG integration we actively manage stock selection to identify the current and future winners among businesses that adapt most quickly to the conditions instead of denying them or making misleading claims and ‘green-washing'."
"In this collaboration with Wellington, BBLAM aims to further expand its knowledge and understanding of sustainability at the corporate level and develop its involvement in Thailand's capital markets accordingly. It will also raise the level of awareness and consideration of ESG factors that are tangible and comparable to international standards, thereby providing a solid foundation for sustainable investment in Thailand."
Also commenting on the agreement, Mr. Samuel Hui, Managing Director, Wealth Business, Client Group APAC, Wellington Management, said, "Wellington strives to drive excellence for our customers by developing sustainable investment strategies based on credible research and appropriateness to the future. Sustainability is both a strategic priority for us and an important part of our commitment to clients. Our in-depth in-house ESG research supports our entire investment team. In addition, scientific collaborations with institutes such as the Woodwell Climate Research Center (WCRC) provide key data and statistics we use to inform our investment decisions. Moreover, we are founding signatories of the ‘Net Zero Asset Managers' initiative and one of our vice chairpersons sits on the board of the UN Principles for Responsible Investment (PRI)."
"Wellington Management is one of the world's largest independent investment management firms, serving as a trusted advisor for institutions in over 60 countries. Covering almost every sector of the global stock market, the company's innovative investment solutions are built on the strength of rigorous research owned by the company."
"As a private company whose only business is investment management, our long-term outlook and interests are aligned with our clients. To better assess risks and opportunities in client investment portfolios, we integrate analysis of environmental, social and governance (ESG) factors into our investment and risk management processes across the company. Our dedicated ESG team furnishes our investment team with research and insights that support ESG considerations. At the same time, the team incorporates analyses and company involvement along with its in-depth portfolio reviewing."
"Wellington's partnership with Woodwell Climate Research Center, the world's leading independent climate research institute, enables us to integrate science, climate action and asset management into our fund management. Our new partnership focuses on quantitative modelling as an important aid to analysis, helping us understand how and where climate change could affect capital markets around the world. Several projects are planned, including developing investor tools and innovative analytical methods to improve climate risk assessment and investment results."
The Wellington approach to sustainable investment
"As a company, we believe that sustainable investing (SI) has changed and will continue to change capital markets. Consistent with our corporate-wide mission, we strive to better serve our customers. By incorporating sustainability into our investment and business practices, we aim to lead our industry forward. We will continue to strive to drive excellence for our customers by leveraging what we regard as our ‘SI edge' – a credible, future-facing approach to research."
- To conclude, Wellington's approach features four principle areas:
- Integrated research — to reduce risk and increase returns.
- Innovation strategies — to translate sustainability research into customer-focused outcomes.
- Engagement – for business advancement and sustainable results.
- Influential industry leadership — to promote a more sustainable future.