We integrate ESG factors and engage companies to increase shareholder value.
Our firm is committed to responsible investing, as part of our fiduciary obligation to help our clients achieve their long-term investment objectives.
Through our affiliations and company engagement, we act as industry advocates and can encourage positive change that can ultimately increase shareholder value.
OUR APPROACH
Cohen & Steers aspires to a leadership position in environmental, social and governance (ESG) investing in real assets and alternative income. We believe our proprietary approach to ESG integration and our stewardship enhance our ability to deliver more consistent, attractive risk-adjusted returns in a systematic and transparent manner. In addition to the important work of ESG integration in our daily investment decisions, we actively engage with many of the companies in which we invest to promote business practices aligned with creating shareholder value, exercising our proxy votes and using our influence as an industry thought leader.
Integration
At Cohen & Steers, we review a company’s key ESG factors specific to the unique dynamics of its industry and asset class. Our extensive expertise, along with the frequency of our company interactions, allows us to carefully assess management credibility and strategy. We combine these insights with third-party data to form a comprehensive view that is expressed in our investment decisions.
Read more about our ESG Integration process.
Download our ESG Integration Statement.
Sustainability Related Disclosures
Engagement
We take an active ownership approach with companies, advocating for sound ESG principles that we believe will help optimize investment performance. This engagement is integral to our fundamental research process, providing a framework for dialogue to actively influence or change ESG practices that may have a material impact on a company’s ability to preserve or grow its economic value. Cohen & Steers’ scale and specialization provide us unique influence with companies, giving our ESG advocacy maximum impact.
Read more about our approach to engagement.
Download our Global Engagement Policy.
ESG at Cohen & Steers
Global Head of ESG
Cohen & Steers has a dedicated Global Head of ESG, Khalid Husain, who is part of the Investment department and oversees the Firm’s environmental, social and governance investment framework and integration process, serving as chair of the Cohen & Steers ESG Steering Committee. Additionally, Mr. Husain works to enhance the Investment teams’ existing ESG process, support strategy development and ESG product initiatives, help guide the Firm’s commitment to corporate responsibility and prepare for and anticipate ESG regulations and policies globally.
ESG Steering Committee
The Cohen & Steers’ ESG Steering Committee oversees ESG initiatives across the Firm and sets future direction of ESG efforts. This ESG Steering Committee originates and prioritizes ESG initiatives and oversees four subcommittees dedicated to specific ESG-related areas: ESG Investments Committee, ESG Product Strategy & Development Committee, ESG Corporate Responsibility Committee, and ESG Regulatory Affairs Committee. The ESG Steering Committee meets at least quarterly, but more frequently as needed.
ESG Investment Committee
The Firm has an ESG Investment Committee which consists entirely of investment staff, mainly portfolio managers and analysts, who are responsible for implementing our integration approach into our investment process. The ESG Investment Committee has designated ESG Captains (four in total) across our key publicly listed asset classes (real estate, infrastructure, natural resources equities and preferreds) who lead their respective teams in ESG initiatives and represent their team as the expert on ESG to both internal committees and clients. The role of ESG Captain is to be the team lead for ESG initiatives and represents the team as the expert on ESG.
AFFILIATIONS
Principles for Responsible Investment Initiative
Since 2013, Cohen & Steers has been part of the growing network of international investors supporting the Principles for Responsible Investment Initiative (PRI), a United Nations-backed initiative focused on environmental, social and corporate governance (ESG) issues. As signatories to the PRI, Cohen & Steers completes the annual PRI Transparency Report, which includes information on responsible investment issues and issuer engagement examples. This information is also available on the PRI website.
Cohen & Steers Statement on PRI
Cohen & Steers Principles for Responsible Investing Transparency Report
UK Stewardship Principles
Cohen & Steers UK Ltd, and Cohen & Steers more broadly, strongly support the provisions of the UK Stewardship Code (the “Code”). We regard careful and responsible stewardship of our clients’ interests as central to our approach to serving them and are currently a signatory of the Code. Please see our full UK Stewardship Code Report for further details.
Singapore Stewardship Principles
We are proud to endorse these principles which aim, by articulating the core behavior and actions associated with investor stewardship, to enable investors to be active and responsible shareholders.
Industry Associations
Cohen & Steers also seeks to encourage companies to adopt ESG best practices at an industry level through the initiatives and industry groups listed below. These groups comprise leading investors and issuers in the sectors we invest in, and are forums through which we discuss corporate governance practices with the goal of improving these practices. These foster collaboration and allow us to discuss and assess ESG matters with industry peers and leading industry constituents.
Memberships relevant across all strategies:
- PRI signatory
- UK Stewardship Code
- The Investment Association (U.K.)
- Investment Company Institute (ICI)
- Japan’s Stewardship Code
- Singapore Stewardship Principles
Listed Real Estate memberships:
- Global Real Estate Sustainability Benchmark (GRESB)
- European Public Real Estate (EPRA)
- Asia Pacific Real Estate Association (APREA)
- National Association of Real Estate Investment Trusts (NAREIT)
- FTSE EPRA NAREIT Asia Regional Advisory Committee
Global Listed Infrastructure and Natural Resource Equities memberships:
- Global Listed Infrastructure Organization (GLIO)
- Member of the Technical Group for GRESB Infrastructure
- Energy Infrastructure Council (EIC)
- Master Limited Partnership Association (MLPA)
RELATED INSIGHT
Building on COVID lessons in real assets and alternative Income Integration
ESG plays key role within portfolio construction
Watch videoMany companies around the world have set Net Zero targets but are only now understanding the decarbonization pathway they plan to take. Khalid Husain, head of ESG at Cohen & Steers, explains how the firm balances portfolio construction with ESG integration.
ESG integration
Watch videoAt Cohen & Steers, we review each company in our investment universe across environmental, social and governance (ESG) factors specific to the unique dynamics of its industry and asset class. Managing analyst Raquel McLean chairs our ESG Investment Committee and shares our four-step process to integration.
Proprietary ESG scores and our approach to engagement
Watch videoOur analysts go beyond third-party scores, weighing individual factors against our proprietary scoring model. This hands-on approach extends to our engagement with firms, as Cohen & Steers does not rely on third-party proxy services. Members of our ESG Investment Committee share why they feel this differentiates us and how it gives us an advantage.
ESG plays key role within portfolio construction
Many companies around the world have set Net Zero targets but are only now understanding the decarbonization pathway they plan to take. Khalid Husain, head of ESG at Cohen & Steers, explains how the firm balances portfolio construction with ESG integration.
Watch videoESG: opportunities and challenges within real estate
Watch videoESG integration
At Cohen & Steers, we review each company in our investment universe across environmental, social and governance (ESG) factors specific to the unique dynamics of its industry and asset class. Managing analyst Raquel McLean chairs our ESG Investment Committee and shares our four-step process to integration.
Watch videoProprietary ESG scores and our approach to engagement
Our analysts go beyond third-party scores, weighing individual factors against our proprietary scoring model. This hands-on approach extends to our engagement with firms, as Cohen & Steers does not rely on third-party proxy services. Members of our ESG Investment Committee share why they feel this differentiates us and how it gives us an advantage.
Watch videoTest
ESG STEERING COMMITTEE
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Chair: Khalid Husain, Head of ESG
Led by Khalid Husain, Head of ESG, the ESG Steering Committee is responsible for guiding the company’s ESG strategy and overseeing its implementation, charting the direction for future ESG endeavors. Composition: This committee is comprised of all the chairs of the other four committees, providing strategic direction and reviews and adjusts priorities in the ESG roadmap. |
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Key Initiatives
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ESG Investments Committee
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Chair: Jan Willem van Kranenburg, VP Managing Analyst
Focuses on embedding ESG principles across all investment teams, ensuring a comprehensive integration of ESG factors into the research and investment process. Composition: This committee is composed of members exclusively from the investment staff, including portfolio managers, analysts, and our ESG captains, ensuring a wide range of investment perspectives and expertise are represented. |
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Key Initiatives
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ESG Product Strategy & Development Committee
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Chair: Amy Duling, SVP Product Strategy & Development Platform Solutions
Focuses on understanding ESG market trends, assessing demand, pinpointing client preferences for ESG solutions, enhancing ESG product reporting, and leading development of ESG-aligned products. Composition: Led by senior personnel from the global product strategy and development department, its membership includes professionals from distribution, investment, finance, and marketing teams as required for specific initiatives. |
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Key Initiatives
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ESG Corporate Responsibility Committee
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Chair: Paul Zettl, EVP Head of Global Marketing
Oversees and considers ESG initiatives at the corporate level, defining and communicating the firm’s stance on ESG and responsible investing, while ensuring policies reflect corporate values and are up-to-date. Composition: A cross-departmental team committed to integrating ESG and responsible practices throughout the organisation, pooling their varied expertise in sustainability and ethics. |
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Key Initiatives by Pillar
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ESG Regulatory Affairs
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Chair: Sharanya Mitchell, SVP Associate General Counsel, Head of Regulatory and International Legal
Analyses and tracks global regulatory trends, demands, and the regulatory landscape affecting ESG, preparing the firm for compliance and strategic adaptation. Composition: Brings together experts from various disciplines within the firm, creating a cross-functional forum for discussion and education on ESG regulatory changes and requirements. |
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Key Initiatives
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Important Disclosures
There is no guarantee that investment strategies which consider ESG factors will outperform those investment strategies which do not consider these factors. There is no guarantee that any historical trend illustrated herein will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that any market forecast made in this document will be realized. The views and opinions in the preceding document are as of the date of publication and are subject to change without notice. An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. Index comparisons have limitations as volatility and other characteristics may differ from a particular investment. This material represents an assessment of the market environment at a specific point in time and should not be relied upon as investment advice, does not constitute a recommendation to buy or sell a security or other investment and is not intended to predict or depict performance of any investment. This material is not being provided in a fiduciary capacity and is not intended to recommend any investment policy or investment strategy or take into account the specific objectives or circumstances of any investor. We consider the information in this material to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of appropriateness for investment. Cohen & Steers does not provide investment, tax or legal advice. Please consult with your investment, tax or legal professional regarding your individual circumstances prior to investing.
Risks of Investing in Real Estate Securities. The risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values due to increasing vacancies or declining rents resulting from economic, legal, political or technological developments, lack of liquidity, limited diversification and sensitivity to certain economic factors such as interest rate changes and market recessions.
Risks of Investing in Global Infrastructure Securities. Investments in global infrastructure securities will likely be more susceptible to adverse economic or regulatory occurrences affecting global infrastructure companies than an investment that is not primarily invested in global infrastructure companies. Infrastructure issuers may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, operational or other mishaps, tariffs, and changes in tax laws, regulatory policies, and accounting standards.
Risks of Investing in Foreign Securities. Foreign securities involve special risks, including currency fluctuations, lower liquidity, political and economic uncertainties and differences in accounting standards. Some international securities may represent small- and medium-sized companies, which may be more susceptible to price volatility and less liquidity than larger companies.
Risks of Investing in MLP Securities. An investment in MLPs involves risks that differ from a similar investment in equity securities, such as common stock, of a corporation. Holders of equity securities issued by MLPs have the rights typically afforded to limited partners in a limited partnership. As compared to common shareholders of a corporation, holders of such equity securities have more limited control and limited rights to vote on matters affecting the partnership. There are certain tax risks associated with an investment in equity MLP units. Additionally, conflicts of interest may exist among common unit holders, subordinated unit holders and the general partner or managing member of an MLP; for example a conflict may arise as a result of incentive distribution payments.
Risks of Investing in Natural Resource Equities. The market value of securities of natural resource companies may be affected by numerous factors, including events occurring in nature, inflationary pressures and international politics.
Risks of Investing in Preferred Securities. Investing in any market exposes investors to risks. In general, the risks of investing in preferred securities are similar to those of investing in bonds, including credit risk and interest-rate risk. As nearly all preferred securities have issuer call options, call risk and reinvestment risk are also important considerations. In addition, investors face equity-like risks, such as deferral or omission of distributions, subordination to bonds and other more senior debt, and higher corporate governance risks with limited voting rights. Below investment-grade securities or equivalent unrated securities generally involve greater volatility of price and risk of loss of income and principal, and may be more susceptible to real or perceived adverse economic and competitive industry conditions than higher grade securities. Benchmarks may not contain below-investment-grade securities.