LEARN MORE
Three Minutes With
Where are banks on their ESG journey?
The banks are on a journey, and I think you can see how in the future they will continue to be the conduit for policies and for regulatory change within the ESG sector. Just as capital has improved over the last 10 years, driven by regulation, you can see how the sustainability policies that are driven by the regulator will be facilitated into the real economy via the banks.
If we think there is EUR 4.7 trillion of spending needed over the next 10 years to meet the 2030 targets, EUR 3.5 trillion of that will come through the private sector, and the banks will play a huge part in that.
How can the industry help consumers beyond just the financial reasons for engaging with protection?
It's easy to be cynical about the insurance industry, particularly when it comes to trust around our intentions.
However, the fact remains that we bring resilience and opportunity to individuals. The financial security in your time of need can mean the treatment that you need or the knowledge of security for your loved ones. It is hard to put a price on that.
So many in our industry are now working with passion to really maximise the value that insurance is bringing to society. That can now be preventative medicine before you know you need it, or tangible solutions to both your physical and mental health needs as they arise.
Our collective recent lived experience of Covid-19 has certainly accelerated the efforts of the industry as we have seen first-hand the value of our offering and a real awareness of say virtual GP services that are available.
There's now a role for all of us in the industry to play. Both advisers and providers need to promote these services, as the only way we can have a real impact is through increased usage. Increased take-up comes with an increased cost overall, but more engagement has to be good. And the question remains, will this be a self-funding solution?
So many in our industry are now working with passion to really maximise the value that insurance is bringing to society
Full health checks can provide detailed information to consumers to better manage their health
How can value-added services make life insurance more sustainable?
Insurance and, in particular, reinsurance have a role to play in making society more resilient. For too long, the only service we have provided is a claim at the time of need. If we really think about our purpose and how to make society more resilient, there is so much more we can do.
By providing additional services to our customers, we can hopefully reduce the incidence and severity of the events that we accompany our customers through. By being there before, during, and after a customer's time of need, we make the whole life insurance proposition more valuable to customers and hopefully cheaper to provide.
The other way we believe value-add services can improve sustainability is through improved persistency. By creating a valuable service rather than just a product, we believe that customers will be less likely to lapse their policy.
You can
watch the interview here
or read her
views below
Traditionally the insurance industry has only offered a claims service at the time of need. However, with growing demands for a sustainable approach to life insurance, this approach is ripe for change.
Sarah Teehan, Head of Protection, Pacific Life Re, argues that the insurance industry can do more to help society through value-added services that take a preventative approach to improve the health of society.
INTRODUCTION | Video interview | Sustainable approach | Preventative healthcare | The future
Preventative healthcare
Sustainable approach
Video interview
INTRODUCTION
Scroll down
#04
An
Audience
With
Sarah Teehan, Head of Protection at Pacific Life Re, on how preventative, value-added services can help society
Columbia Threadneedle Investments' Sonal Sagar & Michael Hamblett
INTRODUCTION | ASSET CLASS | THE FUND | portfolio snapshot
portfolio snapshot
THE FUND
ASSET CLASS
INTRODUCTION
What is the role of a preventative healthcare approach?
The insurance industry, and especially reinsurers, are privy to substantial amounts of data, giving us a very good understanding of the factors that can improve health outcomes. The onus is on us to be true to our purpose and use this information to influence society to better health outcomes.
Preventative healthcare has proven to be immensely effective in this respect. It started with managing smoking status, BMI, and activity management, but now full health checks can provide detailed information to consumers to better manage their health.
Coats Group makes thread, which is an energy and water intensive process, but essential for clothing, footwear and other industrial applications. Coats is attempting to make the process greener and more sustainable by targeting reductions in water consumption and carbon emissions. The company has also pioneered a fully recycled thread, using no virgin plastic.
This is an example of the type of company we look for in the Threadneedle UK Sustainable Equity fund: a company that is perhaps under the radar, but a leading player in a fragmented market, standing to benefit from consumer trends towards sustainability.
We met the company’s head of sustainability to understand how its non-financial risks and sustainable opportunities are managed, and our opportunity to ask questions and bring the investment case to life, far more than reading the annual report.
Threadneedle UK Sustainable Equity Fund: Portfolio snapshot
Coats Group
Johnson Matthey
Reckitt
Johnson Matthey is a chemicals company that makes solutions for cleaner energy and cleaner air. It has an experienced board and is investing in new and future technologies such as fuel cells and hydrogen. To continue driving its sustainability agenda, this year, it is incorporating ESG and sustainability criteria in executive pay.
Improvements are expected in its top line, margin and cash flow. We believe it is undervalued and, when you combine that with the fact that well over 80% of its revenues contribute to the UN SDGs, it is one of the leading companies within the fund.
To have confidence in our investment, engagement is key. We have met management, board members and collectively engaged with the UN Principles for Responsible Investment on its supply chain. This gives us a better understanding of the risk/return characteristics.
Reckitt is a health, hygiene, and nutrition company. It has had big changes in management and strategy over the last few years and now it is embracing its size and scope, driving more from the group level. As a result, it is well-positioned to effect change.
There is a big focus on how its products are made, with reductions in energy and water usage and more recycling. Reckitt works alongside governments and public health bodies to educate people on issues including cleanliness, infant nutrition, sexual health – this is on top of the positive impact of its products within its hygiene, health and nutrition divisions.
Again, engagement is key: we have met the CEO, CFO, chair, directors in charge of executive pay, heads of sustainability to enable us to get a holistic picture of how the company is improving its management of ESG and sustainability.
Important Information
This video
Tap on each image to show details
Tap to go back to options
MENU
CLOSE
THE INTERVIEW
FUND SNAPSHOT
HOME
MARKET OUTLOOK
Source: Morningstar as at 31 July 2021, net of fees, based on Z Acc share class (ISIN: GB00BZ21SS97). Net performance using 12pm prices, unadjusted income reinvested. Peer group is IA UK All Companies. The index is a Composite benchmark. The fund launched 30 October 2015. Past performance is not a guide to future performance.
Threadneedle UK Sustainable Equity Fund: Performance (%)
Fund (net)
FTSE All-Share
IA UK All Cos
3yr
5yr
2020
2019
2018
2017
2016
Since Launch
Year to Date
18.6
44.5
-0.5
21.6
-7.0
14.0
6.7
53.4
9.5
6.6
27.0
-9.8
20.5
-9.2
12.4
12.3
38.8
11.7
12.7
44.0
-7.7
21.9
-10.3
13.0
11.7
49.5
12.3
The future
INTRODUCTION | Video interview | Sustainable approach | Preventative healthcare | The future
The future
Preventative healthcare
Sustainable approach
Video interview
INTRODUCTION
Asset research
1
1 Source: https://bit.ly/3gKn2ZJ
2 Source: https://bit.ly/3H3OXi1
2
marketing communication
