Abrdn: Divesting from mining overlooks reliance on metals and minerals
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Asset management firm Abrdn has defended the mining sector despite incidents of “unacceptable workplace behaviours”, arguing that engagement is a better way to address these issues and promote employee wellbeing.
The Edinburgh-headquartered asset manager issued a statement last week acknowledging the sector is often criticised for its social impacts, particularly “unacceptable workplace behaviours, illustrated by incidents of sexual harassment and assault in Australia and elsewhere in the world”.
The asset manager said: “From an investment perspective, performance that fails to meet stakeholder expectations can lead to operational disruption and reputational damage that can negatively affect investor sentiment and asset values.”
The firm noted some investors have divested from all mining companies in the name of sustainability but said: “While this is understandable, this approach overlooks the fact that our future – which depends on renewable energy, mobility, sustainable cities and a zero-carbon economy – relies on the availability of metals and minerals.”
Instead, Abrdn said it supports “constructive dialogue and engagement” with the mining industry.
“Our key conclusion is that mining companies should use all the tools they have available to them – governance, performance incentives such as remuneration, oversight, monitoring and reporting – to improve workplace behaviour, diversity, equity and inclusion, and apply the same rigour of existing health and safety regimes to psychological safety,” it said.
New CIO to reshape product offering and performance
Meanwhile, the asset manager has appointed Peter Branner as its chief investment officer, who starts on 1 May to help the company streamline its business.
Abrdn said as it moves away from operating “across a broad waterfront”, the business is placing “more emphasis on its core strengths, simplifying the product offering, increasing efficiency and improving investment performance”.
“Peter’s role will ensure that we build a culture of innovation, learning and continuous improvement across our global investment teams,” said the company.
Branner joins from APG Asset Management where he has been CIO, responsible for investment leadership and oversight of public and private markets.
Prior to that, he served as chief executive and CIO of SEB Investment Management in Stockholm where he was responsible for the overall investment process and institutional mandates. Branner also held other senior investment roles, including CIO at Fortis Investments’ multi-management division in London and managing director of IKANO Fund Management in Luxembourg.
Branner will report to Chris Demetriou, chief executive UK, EMEA and Americas, and René Buehlmann, CEO Asia Pacific.
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