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We help institutional investors provide a more secure future for their stakeholders by providing them with best practices, clear advice, data and analytics, and innovative investments and solutions.
In doing so, we help our clients to make more informed and more responsible investment (RI) decisions in alignment with their fiduciary duties, regulatory requirements, and values or commitments.
Clients may implement across a spectrum of core RI actions:
|Activity||Definition||Illustrative Marketplace Example|
|Screening||The exclusion of or divestment from assets or companies that may not be aligned to an investor’s objectives, values or policies.||An active or passive manager avoids or excludes certain geographies, industries or products, including, for example: tobacco, coal, sanctioned regimes or entities.|
|Integration||The systematic identification and analysis of environmental, social and governance (ESG) risks and opportunities to inform both asset valuations and selection, and improve long-term risk adjusted returns. This is not a values- based activity.||An active manager assesses the materiality of ESG data to identify under-appreciated financial risk and opportunity. An active manager may invest in securities with ESG risks if they believe they may be compensated in financial returns.|
|Impact||Seeking positive social and/or environmental outcomes through the portfolio.
Impact outcomes are considered alongside sufficient financial returns.
|An actively managed investment mandate seeks:
|Stewardship||Exercising ownership rights to preserve and enhance the long- term value of assets or, in some cases, to improve social or environmental outcomes, including supporting a well- functioning and financial system.||An active or passive manager votes proxies, engages with management teams and boards of directors, and collaborates with other investors to achieve operational or performance improvements at portfolio assets.|
Aon is a signatory to the Principles for Responsible Investment (PRI), which incorporates:
|We will incorporate ESG issues into investment analysis and decision- making processes.||Our investment manager research process incorporates ESG evaluation.|
|We will be active owners and incorporate ESG issues into our ownership policies and practices.||Stewardship analysis forms the basis of our passive investment strategy ESG evaluation and is a component of our active manager ESG evaluation.|
|We will seek appropriate disclosure on ESG issues by the entities in which we invest.||We encourage investment managers to report and disclose ESG data, preferably using industry-wide reporting templates.|
|We will promote acceptance and implementation of the Principles within the investment industry.||We encourage managers to sign the PRI and adhere to its Principles.|
|We will work together to enhance our effectiveness in implementing the Principles.||We collaborate with industry groups, support consistency and best practice standards, including for example the Investment Consultants Sustainability Working Group.|
|We will each report on our activities and progress towards implementing the Principles.||Our PRI Transparency report is a publicly available document, and Aon produces an annual impact report.|
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice. Investment advice and consulting services provided by Aon Investments USA Inc. (Aon Investments). The information contained herein is given as of the date hereof and does not purport to give information as of any other date. The delivery at any time shall not, under any circumstances, create any implication that there has been a change in the information set forth herein since the date hereof or any obligation to update or provide amendments hereto.
This document is not intended to provide, and shall not be relied upon for, accounting, legal or tax advice or investment recommendations. Any accounting, legal, or taxation position described in this presentation is a general statement and shall only be used as a guide. It does not constitute accounting, legal, and tax advice and is based on Aon Investments’ understanding of current laws and interpretation.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The comments in this summary are based upon Aon Investments’ preliminary analysis of publicly available information. The content of this document is made available on an “as is ” basis, without warranty of any kind. Aon Investments disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Aon Investments reserves all rights to the content of this document. No part of this document may be reproduced, stored, or transmitted by any means without the exp re ss written consent of Aon Investments.
Aon Investments USA Inc. is a federally registered investment advisor with the U.S. Securities and Exchange Commission. Aon Investments is also registered with the Commodity Futures Trading Commission as a commodity pool operator and a commodity trading advisor and is a member of the National Futures Association. The Aon Investments ADV Form Part 2A disclosure statement is available upon written request to:
Aon Investments USA Inc.
200 E. Randolph Street
Chicago, IL 60601
ATTN: Aon Investments Compliance