Mohammad Kamal Syed, managing director and head of investment management at Coutts & Co, discusses the comprehensive transformation in the firm’s investment decision-making process aimed at achieving ESG objectives.
Instead of merely establishing standalone socially-responsible or impact investment funds, Coutts adopted a holistic approach, ensuring that every investment decision is evaluated through a lens of responsibility.
“Assembling impact funds alongside traditional offerings suggests that anything that doesn’t qualify as ‘responsible’ is, by default, considered ‘irresponsible,’” Syed explains. “Thus, we have resolved that every aspect of our operations must align with this responsible/irresponsible framework.”
This shift prompts significant inquiries regarding the overall operational model of the business, influencing decision-making processes, implementation, and the critical measurement of impact.
Syed emphasizes that this evolution within Coutts underscores the fundamental importance of ESG considerations in investment management and lending. He refers to this initiative as a means of “bringing purpose to life.”
Founded in 1692, Coutts is widely recognized in the UK as the bank for the monarchy. Throughout its rich history spanning over three centuries, the institution has consistently prioritized the well-being of its stakeholders, including clients, employees, and suppliers.
“The essence of Coutts has always revolved around purpose,” Syed states. “As we delve deeper into our legacy, it becomes evident that our commitment to purpose has always been central, though it has come to the forefront in recent times.”