Socially Responsible Investment - Looking at how the companies we invest in manage their corporate responsibilities.

When we invest in companies, one of the things we look at is how they manage social, environmental and ethical responsibility. This can be an indicator of good management and ability to respond to competitive pressure.

This is an overview of our approach to Socially Responsible Investment. For more detailed information please go to Standard Life Investments' Socially Responsible Investment Statements of Principles, Policies and Guidelines.

Why it’s important
We believe that companies that take environmental and social responsibility seriously are likely to enjoy comparative advantage in the long run. On the other hand, companies that fail to manage these issues can risk damage to their reputation and their brand – this can directly affect their financial performance.

When we invest in a company, we aim to use our influence as a shareholder to encourage the achievement of best practice standards of environmental and social management. Doing this is designed to protect and enhance the value of the investments we hold on behalf of our customers.

We believe that companies should:

• accept responsibility for the environmental impacts of their activities and endeavour to achieve best practice standards in the management and reduction of those impacts
  
• respect internationally recognised labour rights and provide safe and healthy working environments for their employees
  
• take reasonable steps to ensure that the impact of their operations should be positive and not violate internationally recognised standards on human rights
  
• demonstrate a commitment to best practice standards of corporate citizenship and business ethics, and
  
• inform shareholders of the policies and practices they have adopted to ensure that they meet their obligations to manage their social and environmental responsibilities.
  

Our principles for encouraging best practice

• we seek to improve shareholder value by engaging constructively with the companies in which we invest on environmental and social issues.
  
• we aim to contribute to the development of principles and standards of corporate social responsibility.
  
• we communicate our socially responsible investment principles and policies to customers, intermediaries, and the companies in which we invest.
  

We recognise that the management of environmental and social responsibilities is affected by and subject to many influences. That’s why we consider companies in context, in relation to their peers, and with consideration for the particular circumstances, industries and locations in which they operate.