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Sustainability and the consideration of Environmental, Social and Governance (“ESG”) factors lie at the heart of Foresight’s business. We believe that acting with integrity and investing responsibly are critical to the long-term success of our business.

Our guiding principle is to contribute to the transition to a sustainable society for future generations through the pursuit of innovative opportunities that deliver attractive risk-adjusted returns for our investors. Our investment strategies are shaped by strong ESG values and are aligned with international sustainability initiatives. These shape the way that we frame and communicate our responsible business agenda.

Foresight recognises climate change as the defining challenge of our time. Through channelling global capital flows towards inherently sustainable outcomes, the Group aims to meaningfully assist international efforts to limit the global temperature increase in this century to the Paris Agreement’s target of 2 degrees Celsius, while pursuing means to limit the increase even further to 1.5 degrees.

Guidance and Accountability

The need for a sustainable global financial system is recognised by international organisations and networks, and Foresight is aligned to many of them.

We incorporate sustainability and ESG criteria across all levels of our investment and portfolio analysis, while our alignment with external sustainability and ESG focused organisations allows us to strengthen our approach and provides frameworks for reporting on our progress.

The Principles for Responsible Investment

Foresight has been a signatory to the Principles for Responsible Investment (“PRI”) since 2013. PRI is a globally recognised voluntary framework concerned with the incorporation of ESG considerations into the investment decision making process. It provides a basis for potential and existing investors to judge the quality of a company’s ESG processes and positioning within an industry sector.

As a signatory to PRI we look to integrate the following six principles into our investment process: 

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry

Principle 5: We will work together to enhance our effectiveness in implementing the Principles

Principle 6: We will each report on our activities and progress towards implementing the Principles

The United Nations Global Compact

Founded in 2000, the United Nations Global Compact (“UN Global Compact”) is the World’s largest corporate sustainability initiative. The UN Global Compact advances transparency and accountability across all areas of business operations and has established Ten Principles in the areas of Human Rights, Labour Rights, the Environment and Anti-Corruption.

In 2019, Foresight Group LLP became a member. It is an opportunity to be part of a larger movement of corporations looking to transform the World through responsible business. The agenda for our efforts as a participant is to uphold the Ten Principles of the UN Global Compact and to produce an annual report.

In May 2021, Foresight Group LLP published its inaugural Communication on Progress, describing our actions to advance the Ten Principles of the UN Global Compact, and outlining how the Principles have been integrated into Foresight’s business activities and day-to-day operations.

The United Nations Sustainable Development Goals

The 17 Sustainable Development Goals (“SDGs”) seek to mobilise the international community to bring about an end to poverty and protect the planet. We believe that applying an SDG ‘lens’ in addition to our existing ESG and sustainability framework makes Foresight’s investment activities more outcome-oriented and supports our investors in achieving their ESG objectives.

We have identified the following SDGs as those with which we are most closely aligned:

The Task Force on Climate-related Financial Disclosures

Foresight recognises the importance of assessing climate-related risks that have the potential to materially impact our business. We support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD recommendations are structured around four thematic areas: Governance, Strategy, Risk Management and Metrics and Targets.

You can read our Sustainability and ESG Policy in full here.