Five-Minute Brief: Responsible Investment Trends from Leading Global Asset Owners

Asset owners support healthy economies by providing necessary capital and using their influence to drive stable financial systems. In 2020 and 2024, Quinn+Partners collaborated with a major Canadian pension to conduct global landscape reviews of responsible investment (RI) practices among leading asset owners. The findings, summarized below, offer actionable insights for asset owners to refine their strategies, navigate risk and create long-term value for beneficiaries.

1. Effective Governance Underpins Leading RI Programs

Responsible investment programs typically include five key components: Governance, Strategy, Integration, Engagement and Stewardship, and Member Communications. Effective governance stems from providing boards with the education, resources and a mandate to understand and oversee portfolio environmental, social and governance (ESG) risks and opportunities. An informed board should integrate RI principles into investment beliefs and policies.​ In turn, senior management must be responsible for implementing accountability mechanisms that embed RI into strategy, investment integration, stewardship and communications. For example, Australia’s Cbus Super highlights how their board and management oversee RI.

2. Empowered Investment Teams Own ESG Analysis

Leading asset owners empower their investment teams to assess ESG risks and opportunities with support from dedicated ESG teams, tools, data and strategic direction. To drive accountability and support adequate discussion, investment teams should present their ESG analysis to the investment committee, both pre-investment and when reporting on portfolio performance. For asset owners with indirect investment models, this same approach applies to the selection and appointment of external managers based on reviews of their RI commitments and practices. In Canada, UPP developed a Climate Transition Investment Framework to help its investment teams assess and report on the climate maturity of assets and funds they invest in.

3. Focused ESG Efforts Yield Tangible Results

As ESG management has matured, the subject matter has broadened and become more complex, creating resource challenges for RI teams. This is especially true for stewardship efforts, which can be resource-intensive and only effective under certain conditions. Although RI investment and portfolio analysis should be comprehensive, asset owners are increasingly focusing on strategic initiatives and stewardship resources to address systemic issues, such as climate change and human rights. ​

In the UK, Brunel Pension Partnership’s RI and Stewardship Priorities framework focuses on systemic financial risks, material portfolio risks and opportunities, member priorities and their internal expertise. This targeted approach enables efficient resource allocation and effective stewardship.

4. Investing in Positive Environmental and Social Impacts Drives Value

As long-term investors, asset owners recognize the need to mobilize capital in support of broader economic stability and sustainability. The energy transition is a notable theme, where leaders like CalSTRS have created dedicated investment funds to support decarbonization activities. Others, like PGGM and CDPQ, encourage investment teams to consider positive environmental and social impacts as a lens alongside risk and return when evaluating potential investments.

5. Engaging Beneficiaries Supports Alignment and Fiduciary Duty

Leading asset owners actively engage with beneficiaries via surveys, town halls, workshops and advisory committees to understand their RI preferences and provide transparency about how ESG factors influence investment decisions. In doing so, asset owners can strengthen their RI programs and deliver value that resonates with beneficiaries’ evolving expectations.

A leading example of member engagement is Pensioenfonds Detailhandel, which completed a three-day Deelnemersdialoog (Member Dialogue) in 2024 to solicit input from its members and craft recommendations to help shape the plan’s RI approach.

At Q+P, we advise businesses and investors to embrace sustainability and the climate transition and excel in a changing world. If you would like to explore the landscape review findings featured in this article, please get in touch.