Responsible and Ethical Investment Policy
This Policy defines the Environmental, Social and Governance (ESG) standards we will require in our investments, as well as ways in which we can support the evolution of good ESG practices in our portfolio.
Enabling better ESG practices within our investee businesses is an important part of the Bank’s ‘value add’. The Policy also identifies a range of activities which we will not invest in, as we believe they are counterproductive to the Bank pursuing positive mission impact.
The Bank seeks to use its investments to the benefit of Scotland by supporting communities to thrive, a more resilient environment, and a more productive economy. We believe that by applying good ESG practices, our investees can achieve the outcomes we value, whether that is protecting workers and the environment or creating new economic opportunities for local communities. Applying these standards can also produce material financial benefits and opportunities for businesses, including:
- Improved access to markets and capital
- Increased productivity
- Better relations with employees
- Increased customer trust and brand value
- Cost efficiencies
- Better stakeholder relations
