RAM believes that identifying and managing ESG factors helps in finding new opportunities, steering capital towards more attractive areas, and managing long-term investment risks. As a result, it is expected that returns will be higher, and downside risks lower, over the long term. These benefits arise from avoiding the poor performance and enterprise failures that can arise from lax governance, and weak environmental, regulatory and social practices. ESG integration is tailored to the investment strategy and portfolio objectives. Some of our strategies have more formal ESG screening and integration whilst some strategies are more passive in nature designed to achieve specific investment outcomes with strict investment universe rules where ESG screening is limited. Clients also set their own specific rules within their customised investment mandate to provide an additional layer of constraints. The purpose of integrating ESG risk factors is to make better investment decisions and improve understanding of risks within portfolios. RAM recognise the importance of ESG considerations when managing investment portfolios and specifically build portfolios to achieve specific objectives with minimal risks – including risks from ESG.