SBAI Memos Discuss Implementation of Responsible Investing in Alternative Strategies

In March 2021, the Standards Board for Alternative Investments (SBAI) issued a Responsible Investment Policy Framework (Framework) to assist alternative investment managers in developing approaches to responsible investing. The SBAI recently issued four memos that discuss application of the Framework to equity long/short, credit, macro and systematic alternative strategies. Each memo addresses how responsible integration, responsible asset selection and responsible asset ownership can be used in the strategy it covers, as well as reporting and investor due diligence. This article distills the commonalities and differences among the four memos, with commentary from SBAI content/research director Maria Long and OMNIResearch Group co‑founder and director of research Dorien Nunez. See our two-part series on the evolving SEC approach to environmental, social and governance (ESG) investing: “SEC Commissioners Peirce and Roisman Argue Against Prescriptive ESG Disclosures” (Oct. 21, 2021); and “SEC Commissioners Gensler and Lee Advocate Further SEC Oversight of ESG Efforts” (Oct. 28, 2021); as well as our two-part coverage of IOSCO’s ESG consultation report: “Risk of Greenwashing and Regulatory Approaches” (Aug. 5, 2021); and “Investor Education, Impediments and Recommendations” (Aug. 19, 2021).

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