By: Mike Adsetts, Chief Investment Officer, Momentum Investments
In Momentum Investments’ fourth Stewardship Report, we continue to share and highlight the progress made on our responsible investing journey. Over the last year there was a heightened focus on climate change and the need to responsibly approach portfolio decarbonisation. To this end we have formalised the Momentum Decarbonisation Roadmap, updated our climate change and proxy voting policies and, for the first time, measured the carbon footprint of the listed equities and fixed interest assets that we invest in.
In addition, Momentum Metropolitan Holdings Limited measures the carbon footprint of the group as disclosed in the Carbon Disclosure Project over the last few years.
The need for climate action is nuanced and we are mindful that the approach needs to be considered and measured, taking into account the unintended investment, economic and social consequences. This includes the risk of stranded assets as well as the negative human consequences resulting from the potential closure or scaling back of economic activity with high energy intensity. This is one of the reasons that we continue to be a supporter of a ‘Just Transition’, to not forget about the negative social impact of any climate related action that we undertake.
We consider what is reasonable and responsible within our portfolios to address climate action. Some of the actions that we have taken are through our investments in selected infrastructure, participation as signatory to the Climate Action 100+ initiative, including a prudent level of decarbonisation in our global equity portfolios, and a variety of other initiatives. Various of these actions are showcased in our report. Our engagement activities are well aligned to our climate approach together with our other focused initiatives. Through our proxy voting and corporate engagement activities, we engage on climate related issues, governance, remuneration and diversity. In our latest Stewardship Report, we give case studies of these engagements, including with Glencore Plc and Kaap Agri Limited, and the outcomes that we have achieved.
Transformation remains an imperative for the sustainability of South Africa. It is another area that needs to be carefully considered, where we need to be mindful to give opportunities to all South Africans as well as continue to access the skills we need to thrive as an organisation and country. A significant part of this is to be diligent in building up and developing our human capital. This report gives an update on the progress we continue to make on this front.
Responsible investing and sustainability are core values to us. We are proud of the progress that we have made and will continue to make. With us, investing is personal, and the Stewardship Report allows us to report back on our progress to our investors.
The Stewardship Report is available for download here.