Responsible Investing

Responsible Investing: More Than a Buzzword

Our vision is to become a recognized industry leader in responsible investing, with solutions that combine strong financial outcomes with excellence in ESG research, integration and product design.

Responsible Investing at AB

AB’s voting record for all shareholder proposals that were voted on in the US market during the 2020 proxy season. All data as of September 30, 2021.

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Climate Academy: Bridging Climate Science and Investing

AB and Columbia University’s Earth Institute are partnering to tackle the pressing issue of climate change. Through a first-of-its-kind climate change curriculum, the Corporate Affiliate Program of the Columbia Climate School and in-depth investment initiatives, we’re working to harness climate and investing science—improving outcomes for investors and the planet.

Bridging Climate Science and Investing

First-of-its-Kind Climate Change and Impact Investment Curriculum
AB’s investment professionals are collaborating with climate experts at Columbia University’s Earth Institute to translate climate science into investment analysis. This initiative has produced a first-of-its-kind climate change and impact investment curriculum, “Climate Science and Portfolio Risk.” The coursework fills a major industry need for asset managers to dig deeper into the complexities of climate change and how it impacts economic and financial outcomes. The classes cover the risks of global climate change—including rising sea levels—and predictive modeling for extreme weather, wildfires and other threats from a warming planet. The ultimate goal is to better understand the impacts of climate change and apply this understanding to investment decisions. We’re thrilled to partner with the Earth Institute in applying climate science to drive better outcomes.

ESG Integration and Engagement Improve Investment Decisions

ESG considerations are financial considerations, and they must be integrated into deep fundamental research. Because ESG factors can have a material financial impact, ignoring them leaves the puzzle unfinished. ESG integration at AB is investor-driven—because investors are best positioned to conduct the deep fundamental research necessary to truly understand how ESG issues impact securities. Proprietary tools and systems advance ESG engagement, research and collaboration among our global team of analysts, responsible investing experts and portfolio managers.

In 2020, we engaged with over 350 of our largest holdings for action, asking companies to improve current practices or adopt new ones. See our Engagement Report below.

ESG Integration

ESG factors are fully integrated in our investment process.

Senior analyst reviewing with junior analysts potential green policies.

ESG Engagement

As active investors, we encourage firms to improve their business activities and practices.

Portfolios with Purpose

We manage US$27 billion in Portfolios with Purpose today, one of the most rapidly growing segments of our business. We also manage US$501 billion in assets that use ESG integration and other enhancements.

IMPACT
SUSTAINABLE
RESPONSIBLE+

Impact

Seeking to make a measurable social or environmental impact

Muni Impact

A fixed-income strategy that invests in historically marginalized and low-socioeconomic-status communities throughout the US. Each investment has a specific intention of reducing a societal disparity (e.g., education, health, clean water) between groups.

Sustainable

Seek issuers that meet present needs without compromising future well-being

Sustainable Thematic Platform

Includes equity, fixed-income and multi-asset portfolios that invest in companies whose products and services contribute to achieving the UN’s Sustainable Development Goals. These portfolios focus on three themes: climate, health and empowerment.

Responsible+

Responsible+ solutions have a responsibility objective as well as a traditional risk/return objective

Responsible+

Include Global ESG Improvers focused on equities that are driving ESG improvement and positive change in the world, low-carbon versions of our flagship equity offerings, and ReUSE—a diversified large-cap core equity portfolio of investments improving on dimensions of corporate responsibility.

Collaborate, Explore, Advance

Proprietary Research Collaboration Platforms

We’ve innovated platforms that power collaboration between our analysts within and across asset classes as we research and engage with issuers.

PRISM

Our fixed-income ESG research platform, Prism, provides independent ESG assessments and scores that impact investment decisions. The goal, of course, is straightforward: better and faster information should empower better decisions and result in stronger portfolios.

Upward view of geometric architectural structure from internal lobby of building with view of skylights.

ESIGHT

ESIGHT is a one-stop online shop where all AB investment teams can access and share proprietary information about corporate ESG practices. In 2020, we launched several ESIGHT enhancements, including an ESG knowledge center, COVID-19 research and country ESG scores for fixed income.

Striving for Industry Leadership in Responsible Investing

We’re dedicated to helping the asset-management industry move responsible investing forward. Our commitment is evidenced by our active history and membership in regulatory and industry organizations and initiatives.

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History of Our Commitment

Joined the Forum of Investors—Japan
Joined the TCFD Consortium in Japan
Joined the Japanese Stewardship Initiative
Joined the Investors Against Slavery and Trafficking—APAC
Joined Ceres
Became Founding Member of the Corporate Affiliate Program at the Columbia Climate School
Became Member of Emerging Markets Investors Alliance

Joined the AIGCC and ACGA
Became Boston College Center for Corporate Responsibility Supporting Member
Became Eurosif Transparency Code Signatory
Became FAIRR Member
Became Investor Stewardship Group Principles Signatory

Joined Investor Group on Climate Change
Started climate change and investing initiative with the Earth Institute at Columbia University in New York
Became Associate Member of LuxFlag

Joined ICI Global ESG Task Force
Joined ICI Proxy Committee
Joined ICGN Board Governance Committee
Became TCFD Supporter
Became engagement colead for Climate Action 100+

Became committee member of Securities and Futures Commission of Hong Kong’s Public Shareholders Group
Published Engagement Policy

Became CII Corporate Governance Advisory Council Member

Joined Climate Bonds Initiative
Joined Catalytic Finance Initiative
Joined Climate Disclosure Project

Published formal response to Japan Stewardship Code
Chaired AN/Securities/IB Working Group PFA21
Joined International Corporate Governance Network (ICGN)

Released Statement on Controversial Weapons
Became Japan PFA213 signatory
Became PRI signatory
Published formal response to UK Stewardship Code1
Joined Council of Institutional Investors (CII)

Principles for Responsible Investment

At AB, we’ve invested responsibly for many years. In 2011, we honed and formalized our approach by becoming one of the earliest asset management firms to sign the Principles for Responsible Investment (PRI), the largest global reporting project on responsible investment. The six principles were developed by investors, for investors. They’re voluntary and aspirational, offering possible actions for incorporating ESG issues into investment analysis, decisions and practices.

In implementing the PRI, signatories contribute to developing a more sustainable global financial system. We’re committed to implementing the six PRI as we continue advancing our responsible investing efforts. This commitment has been recognized: in 2020, for the fifth straight year, AB received an A+ PRI rating for our responsible investing strategy in 2020.

Global Related Proxy and Governance Information

Proxy Voting and Governance Policy
PDF
US Mutual Fund Voting Records
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Charter of the Proxy Voting and Governance Committee
PDF
Full Voting Records
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2020 Proxy Season Review
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2021 Proxy Season Preview
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AB Policies and Statements

Learn more about AB’s strategy and philosophy on investing with integrity.

Global Stewardship Statement
PDF
Stewardship Report 2020
PDF
Statement on Controversial Weapons
PDF
Climate Change/TCFD Statement
PDF
AB Corporate Governance Advancement Expectations in Japan
PDF
Global Slavery and Human Trafficking Statement
PDF
Letters to Policy Makers
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Reports

Engagement Campaign Report 2020
PDF
Engagement Report 2019
PDF
PRI Assessment Report 2018
PDF
PRI Assessment Report 2019
PDF
PRI Assessment Report 2020
PDF
PRI Transparency Report 2018
PDF
PRI Transparency Report 2019
PDF
PRI Transparency Report 2020
PDF
Responsible Investing Report 2019
PDF
Responsible Investing Report 2020
PDF
Shareholder Rights Directive II Disclosures
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Responsible Investing: More Than a Buzzword

Responsible Investing at AB AB’s voting record for all shareholder proposals that were voted on in the US market during the 2020 proxy season. All data as of September 30, 2021.

Climate Academy: Bridging Climate Science and Investing

Bridging Climate Science and Investing

ESG Integration and Engagement Improve Investment Decisions

ESG Integration

ESG Engagement

Portfolios with Purpose

Muni Impact

Sustainable Thematic Platform

Responsible+

Collaborate, Explore, Advance

Proprietary Research Collaboration Platforms

PRISM

ESIGHT

Striving for Industry Leadership in Responsible Investing

History of Our Commitment

Principles for Responsible Investment

Global Related Proxy and Governance Information

AB Policies and Statements

Reports

Responsible Investing at AB

AB’s voting record for all shareholder proposals that were voted on in the US market during the 2020 proxy season. All data as of September 30, 2021.