Columbia Threadneedle: CT Responsible Global Emerging Markets Equity Strategy - Responsible Profile 2023

Within our Strategy, we believe that our duty extends beyond just considering financial returns, but also encompasses the broader impact of our investments on society and the environment.

Emerging markets present unique opportunities and challenges for us as investors. These regions are often characterised by rapid economic growth, dynamic market potential, and significant social and environmental needs. Responsible investing in emerging markets is not only a moral imperative but also a strategic approach to achieving sustainable long-term returns. By integrating environmental, social, and governance considerations into our investment process, we aim to discover and support companies that are well-positioned to thrive in a sustainable future.

Investing responsibly in these markets can mitigate material risks associated with poor governance, social instability, and environmental degradation, which are often more prevalent in emerging economies. Furthermore, it allows us to leverage our capital to encourage positive corporate behaviour, as well as promote ethical practices, environmental stewardship, and social inclusion.

Within the Strategy, we believe that our investments can be a powerful catalyst for change. By actively engaging with the companies in our portfolio, we encourage them to adopt best practices in a myriad of sustainability standards. This engagement ranges from discussions with management to proxy voting and participating in shareholder resolutions. Our goal is to further a culture of accountability and continuous improvement within these companies, ultimately enhancing their long-term value.

We understand that our clients entrust us with their capital, expecting not only financial returns but also responsible management of their investments. Transparent reporting is essential to us to maintaining this trust. Our 2023 Responsible Profile report aims provide detailed insights into our investment processes, RI integration strategies, and the tangible progress of our investments. We also highlight case studies of portfolio holdings that have made significant strides in improving their ESG practices, illustrating the real-world outcomes of our responsible investing approach.

Moreover, we are committed to continuous learning and improvement. We regularly review and refine our RI criteria and investment strategies to adapt to evolving market conditions and emerging sustainability challenges. By doing so, we ensure that we remain at the forefront of responsible investing in emerging markets.