Responsible Investing Isn’t Just a Buzzword

At AB, it’s part of who we are: a responsible firm with a deep research culture that has fully integrated environmental, social and governance (ESG) considerations in our investing process. Using our expertise, we’ve developed innovative, responsible investment solutions to help clients invest with purpose.

ESG Integration and Engagement: Fundamental to Active Investing

Environmental, social and governance (ESG) considerations are deeply ingrained in AB’s investment and research processes—and in the way we engage company management teams and stakeholders. ESG factors are fully integrated in the overall risk/return assessment for every security we analyze. We believe that this rigor drives better research and better outcomes for investors.

AB’s analysts engage regularly with management teams to assess and encourage improvement on business practices—issues ranging from capital allocation to better disclosure—to help us make informed decisions and drive better client outcomes. Often, our equity and fixed-income analysts will partner to jointly engage management teams.

Commitment Drives Action in Responsible Investing
Responsible investing personnel numbers include employees fully dedicated to responsible investing, members of committees and those involved in responsible investing work-streams as of December 31, 2019. ESG research, proxies and management meetings for the year ended December 31, 2019. Assets under management using ESG integration are as of December 31, 2019 and include active fixed income and equity strategies.

We’ve developed a robust infrastructure for responsible investing and focused our talent on roles that provide guidance and insight. With support from the highest levels of the firm, we’ve been able to translate commitment into action.

Commitment

ESG

Considerations are fully integrated in our investment process

99

Employees Directly Supporting Responsible Investing Initiatives

140

Fundamental Research Analysts

9,062

Proxies voted globally

Results

$483B

of AUM under full ESG integration

10,000+

Meetings with company management teams

78%

Votes in support of diversity-related shareholder proposals globally

Portfolios with Purpose: Our Solutions

ESG integration and engagement forms the foundation of our investment approach. We’ve designed innovative solutions for investors who want to incorporate responsibility with their financial goals.

Screening

Shaping the available issuer universe with explicit exclusions

Example

Our solutions can screen out issuers such as weapons and tobacco firms

Goal-Based

Incorporating an additional responsibility goal along with traditional risk/return

Example

The goal of our green alpha strategy is to achieve a carbon-neutral portfolio

Sustainable

Focusing on issuers who meet present needs without compromising the well-being of future generations

Example

Our sustainable strategies align with the United Nations Sustainable Development Goals, focusing on health, environment and empowerment themes

Impact

Aiming to produce a measurable social or environmental impact with your investments

Example

Our muni strategy invests in bond projects that benefit underserved communities

ESG Collaboration: Leveraging Insights to Succeed

We’ve developed an innovative platform to help our analysts collaborate within and across asset classes.

Prism logo

Proprietary ESG Scoring

Our fixed-income PRISM research platform includes proprietary ESG scores that directly impact analysts' forward ratings for each issuer we research.

Formalizing Analysis, Facilitating Collaboration

This proprietary digital platform provides a common framework for evaluating ESG issues enabling our analysts to leverage the full breadth of research insights from equities and fixed income. It also keeps a running catalog of company engagements.

Engagement and Proxy Voting: Advocating the Ownership Perspective
Proxy vote results are for the 2019 proxy season. Votes supporting shareholder proposals on climate-related issues reflect US shareholder proposals. Top 6 ranked by Morningstar for the five proxy seasons ending in 2019.

We’ve always been steadfast advocates of proposals that encourage companies to strengthen their corporate governance structures, support shareholder rights and strive for greater transparency. Our voting record reflects that conviction.

Votes Supporting Management
Proposals on Director Nominations

Votes Supporting Shareholder
Proposals on Climate-Related Issues

Ranked as the Sixth Most Supportive
on Shareholder Sustainability Proposals

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Principles for Responsible Investment

AB has invested responsibly for many years. In 2011, we honed and formalized our approach by signing the United Nations Principles for Responsible Investment (PRI). The six PRI are voluntary and aspirational, offering possible actions for incorporating ESG issues into investment analysis, decisions and practices.

The Principles were developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system. We’re committed to implementing all six principles as we continue to advance our responsible investing efforts.