Fullerton’s commitment to sustainability
Fullerton Fund Management (“Fullerton”) is a signatory to the Principles for Responsible Investment ("PRI"), and we are committed to upholding the PRI’s Six Principles. As an active fund manager, Fullerton seeks to assess companies holistically. This includes an evaluation of material environmental, social and governance (“ESG”) risk and opportunities in our investment analysis.
We are aligned to the United Nations Sustainable Development Goals (“SDGs”) as part of our responsible investment strategy. The SDGs aim to address the major sustainability issues for our planet, some of which are particularly pressing in Asia. As an Asia-based investment manager, Fullerton plays a role in this global effort.
Integrating ESG factors into our investment philosophy
ESG considerations are an integral part of how we fundamentally assess a company. They are evaluated both through a risk management lens and as a potential source of returns for the companies we invest in.
We believe integrating ESG factors into our research and analysis gives us a more thorough understanding of the risks and value drivers that may impact the companies we invest in. Top-down and bottom-up fundamental research is at the heart of our investment philosophy, and ESG factors are integrated within our investment process.
How ESG fits into our investment framework
As an active fund manager, Fullerton assesses companies holistically, to develop an intimate understanding of their exposure to ESG risks and opportunities in these markets. We strive to strengthen the inclusion of ESG factors in our investment research, analysis, decision making, portfolio management and engagements.
To achieve this goal, we have combined an ESG research framework available in the market with our unique insights as an active fund manager.
Our approach to engagement
Engagement is a fundamental part of our investment process. Positive engagement and open dialogue with management allow us to develop a more informed view of the companies and the way they operate. It provides us the opportunity to encourage companies to improve the management of their ESG issues, particularly when improvements in policies and practices can be expected to enhance and protect shareholder value.
In 2022, the investment team engaged with over 150 companies on key issues such as climate change, corporate governance and occupational health and safety. Our engagements include:
- Co-leading a collaborative investor engagement with a Chinese power company to determine the strength of its green transition strategy
- Multiple one-to-one engagements with an Asian electronics manufacturer to evaluate the risks of labour and human rights issues
- Engaging a global agribusiness company to understand its progress on traceability requirements and in meeting Taskforce on Nature-related Financial Disclosures (TNFD) recommendations on biodiversity risks
Managing climate risk in investment portfolios
Climate change is the defining issue of our time. As an asset manager, we seek to manage climate related risks and opportunities in our funds and to promote the TCFD’s recommendations on climate-related financial disclosure in the companies we invest in.”
– Jenny Sofian, CEO
Fullerton is proud to express its support for the Task Force on Climate-related Financial Disclosures (TCFD) and its recommendations. The TCFD’s recommended voluntary disclosures are aimed at increasing market transparency and awareness regarding climate-related risks.
Fullerton recognises the significance of integrating environmental risks into our risk management framework. We are committed to progressively enhancing our environmental risk management practices to ensure the resilience of our clients’ assets against the impact of other environmental risk types, beyond climate change.
Our participation in industry ESG initiatives
Singapore Green Finance Centre
Fullerton is a founding member of the Singapore Green Finance Centre (SGFC).
The SGFC is an initiative by the Monetary Authority of Singapore (MAS) in collaboration with Imperial College of London and Singapore Management University (SMU). The SGFC will leverage the respective strengths of Imperial and SMU in climate science, financial economics, and sustainable investing to equip professionals with new skills and foster a strong pipeline of green finance talent.
Asia Investor Group on Climate Change
Fullerton is a member of the Asia Investor Group On Climate Change (AIGCC). The AIGCC is an initiative aimed at creating awareness and encourage action among Asia’s asset owners and financial institutions regarding the risks and opportunities associated with climate change and low-carbon investing. In addition to our individual engagements with investee companies, we also participate in co-engagements with the AIGCC.
Climate Action 100+
Fullerton is a signatory to the Climate Action 100+, an investor-led initiative aimed at ensuring the world’s largest corporate greenhouse gas emitters take necessary action on climate change. As a signatory, we are responsible for direct engagements with focus companies, either individually or in collaboration with other investors.
Singapore Stewardship Principles (“SSP”) for Responsible Investors
Fullerton is proud to affirm our support for the SSP. The SSP aims to enable investors to be active and responsible shareholders.
People and community
As a corporate with a strong sense of social responsibility, we look to contribute positively to the community and the environment.
Promote local produce to enhance food resilience in Singapore
As part of our sustainability initiative, we launched Local Labels Global Flavours. This effort was conceptualised in line with the Singapore government’s “30 by 30” goal – to produce 30% of our nutritional needs domestically by 2030, up from the current 10%.
Local Labels Global Flavours showcases the ingenuity of domestic food producers, with recipes by celebrity chefs that champion the beauty of local ingredients, while creating greater consumer awareness of fresh, grown-in-Singapore produce. Over the course of this year, we have showcased this initiative at the Singapore International Agri-food Week 2023 Gala Dinner and community events including the Income Eco Run, Sundown Social (the first-ever evening farmers’ market at Dempsey Hill) and farmers’ markets organised by City Sprouts, a local social enterprise that rejuvenates urban spaces and develops educational programmes to support action on social and environmental issues.
Through these efforts, we hope to inspire a renewed perspective on local produce and spark a shift in consumption habits. Read more about Local Labels Global Flavours here.
In 2022, we partnered with AMKFSC Community Services Ltd to organise an excursion to Bollywood Veggies and Hay Dairies for the children at Spright Academy (Ang Mo Kio) and have also donated to the centre to support the refurbishment of their facilities.
This follows from our first community activity with Spright Academy in 2021, where a group of volunteers from Fullerton taught these children basic financial literacy via a virtual teach-in session.
Responsible investing insights
We seek to promote knowledge sharing in the field of responsible investing through insightful research reports.