Pāua Wealth Management is committed to responsible investing. We aim to select investments and managers that adhere to our responsible investing beliefs and as such, we require our investment managers to consider environmental, social and governance (ESG) factors in their analysis and decision making.
We believe that responsible investing is one factor that leads to reduced risk over the long-term and enhanced portfolio performance. We work with our clients to align their investments with their values.
Pāua Wealth Management believes that as part of a robust investment framework, ESG factors should be considered by the investment managers appointed for the following reasons:
It leads to a more complete analysis of companies, including the early detection of risks which enables more timely corrective action to be taken. Over the long term, this should contribute to higher returns and less risk;
Critical to the long-term performance and success of any business is the effective management of ESG factors including governance, culture, safety and environmental risks. By not managing these factors effectively, there is a greater possibility of inferior returns.