NCM CEO Kathleen McLeay was delighted to attend the AM Addleshaw Goddard Sustainability roundtable in Edinburgh on 12 September. It was a well-attended event and an interesting and engaging discussion led by Scottish National Investment Bank who began proceedings by telling the group more about their focus and aims in relation to dealing with market failure and supporting the correct flow of capital. Their themes of focus are Net Zero, Places and Innovation and it was useful for all in attendance to get a better flavour of the organisation and meet the team.
The lively discussion covered how ESG is about managing the downside and creating an environment of operational hygiene but also the need to separate from Impact in its wider sense. All agreed Theory of Change is fundamental and there was a recognition impact might not occur in the life of the fund. Various software tools and their ability (or not!) to assist with impact measurement and reporting were also discussed. Kathleen noted that NCM were working with managers to try and include ESG reporting into their fund reports as increasingly a requirement from investors. It was also recognised investors often ask for “ESG” reporting without also knowing what they want to see so important managers engage with their investors fully at the outset to ensure any reports they build (and pay for) are meeting investor requirements.