Responsible Investment

Our commitment and focus


Serving our clients’ long-term financial interests

At the core of our investment practices is a drive to serve our clients’ long-term financial interests by demonstrating good citizenship in the countries in which we operate and invest, as well as those countries that may be affected by our investments.

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We believe that we will make the best possible investment decisions on behalf of our clients by incorporating material environmental, social and governance (ESG) factors into our investment processes. This belief is core to our business. At the same time, we believe that there is no universal approach to Responsible Investment. At Eastspring, our investment teams are empowered to integrate ESG considerations into their investment processes and philosophies, as appropriate.

We recognise that sustainable investing requires a patient approach and an understanding that changes in corporate behaviour can support shareholder value over time. We firmly believe that companies that adopt sustainable business practices are more likely to deliver superior shareholder value in the long-term and, where appropriate, we encourage ongoing improvement through an ongoing and collaborative dialogue.

We believe that companies are more likely to prosper if they minimise their environmental impact; treat employees, customers and workers in their supply chains fairly and with respect; and act responsibly within their communities and toward their shareholders. However, we also look beyond companies and use our insights to inform our investment decisions in Government bonds which are included in instruments across various asset classes.

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Our culture and values underpin our stewardship commitment to our clients. We understand that in managing our clients’ assets, we have been granted a social licence to operate. Maintaining this licence means that we need to ensure that our clients continue to have confidence in our investment capabilities and that we always put their interests at the heart of our business. Striving for the highest degree of transparency that we can achieve ensures that we are held accountable and, therefore, operate with honesty and integrity in our work on our client’s behalf.

In the latter half of 2019, we conducted an exhaustive exercise to determine our organisation’s purpose. Through extensive consultation with colleagues and other stakeholders, Responsible Investment frequently came out as a key driver behind what we do. Our purpose – Experts in Asia. Invested in Your Future. – highlights our firm commitment to securing the long-term future of our stakeholders. We are not just focused on investing, but also ‘invested in’ and committed to,your future. And that means the future of everyone: Our clients, our colleagues, our partners, our shareholders and our community. To be truly ‘Invested in your future’ we must be completely committed to Responsible Investment, so that we can fulfil our promise.

As a signatory to the United Nations-supported Principles for Responsible Investment. We are demonstrating not just our commitment to Responsible Investment, but our desire to become leaders in the field in Asia.

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We are firmly committed to be a responsible steward of our clients’ assets.

As a member of the International Corporate Governance Network, we adhere to their Global Stewardship Principles and Global Governance Principles, believing governance is the foundation of effective stewardship. We:

  • Develop and implement stewardship policies
  • Monitor and assess investee companies
  • Engage with companies and collaborate with investors
  • Exercise our voting rights
  • Promote long-term value creation and the integration of environmental, social and governance factors
  • Encourage enhanced transparency and disclosure

Responsible Investment Framework and Governance Structure

At Eastspring, we have wide-ranging investment expertise and diverse investment approaches – and so work under the premise that there is not a single, universal approach to Responsible Investment.

All investment teams are informed by our Responsible Investment Standards, including ESG, Stewardship, Proxy Voting and Best Execution. Each asset class and investment strategy has its own unique characteristics, and investment teams are empowered to own their approach to ESG integration and engagement.

All investment professionals are responsible for incorporating all factors deemed to impact the investment decision making process. The results of this effort is monitored at the portfolio level where the aggregate ESG score is reported along with performance on a monthly basis.

Supporting each of these approaches is an overarching Responsible Investment Framework and Governance Structure, which informs our Responsible Investment Standards and associated policies.

How it works

Eastspring executive committee
Eastspring executive committee

Our parent company, Prudential Plc

As a life insurer, asset owner and manager, we are long-term stewards of our customers’ assets. We have a responsibility to our customers, the communities and environment in which we operate, to apply ESG considerations into our investment decisions and our fiduciary and stewardship duties.

Our Group-wide Responsible Investment Framework (GRIF) is designed to draw together the ESG-related approaches of our asset management businesses (Eastspring in Asia and PPM America in the US) and our asset owner insurance businesses (PCA in Asia and Jackson in the US).

Oversight of the GRIF is the responsibility of our ESG Executive Committee, which reports to the Nomination & Governance Committee of Prudential plc. The ESG Executive Committee maintains our Group-wide Responsible Investment Standards, which are based upon our Group Code of Business Conduct and set minimum requirements for each of our business units. These Group-level standards require all of our businesses to develop and maintain their own local responsible investment policies, which capture their own approaches to responsible investment and are appropriate to the jurisdictions in which they operate.

Eastspring Investments

The Eastspring Management Committee (EMC) drives and oversees the day-to-day operation of the firm globally. Eastspring Investments Responsible Investment Taskforce (RIT) is designated responsibility to oversee Eastspring Investments Responsible Investment activities by the EMC. The RIT provides a forum to determine the strategic direction for Responsible Investment. It comprises of cross-functional representation of investment teams across our business.

The Eastspring Responsible Investment Working Group (ERIWG), which comprises of representatives across Eastspring Investments Local Business Units (LBUs), is a sub-committee of the RIT. It assists the RIT in implementing our Responsible Investment Framework. In turn, locally-represented Responsible Investment Committees are formed, as needed, to discuss practical and operational issues encountered in the application of the investment teams' policies.

We are committed to an ongoing process of improving our approach to integrating ESG into our investment processes. Our policies will evolve over time to reflect changes in business practices, structures, technology, and the law.

How we integrate ESG factors into decision-making

ESG Thought Leadership

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