Our Investing

We believe incorporating material, nonfinancial ESG factors into investment selection and risk management has the potential to enhance long-term investment returns.

Responsible Investing

Our Responsible Investing (RI) Policy, adopted in early 2022, provides a framework for governance, investment strategy, engagement, reporting and communications. In developing the RI Policy, we considered the six principles set forth by the United Nations Principles of Responsible Investment (UN PRI). The RI Policy reflects our approach to sustainable value creation by considering ESG factors, including climate change, in the investment process for all asset classes under our management.

View Responsibile Investing Policy

We integrate ESG factors into investment analysis and decision-making. Through our fundamental analysis, we incorporate investee companies’ ESG risk ratings, which include factors such as corporate governance, climate risk exposure, carbon reduction and workforce policies. We aim to deliver total return and income for Arch while realizing added benefits when investing to create a positive benefit for society.

  • As of Dec. 31, 2022, we had $138 million invested in green bonds issued to fund green projects, activities that promote climate change mitigation or adaptation, or other environmental sustainability purposes.
  • Responsible investments currently total approximately 3% of our total assets under management (AUM).
Responsible Investing ($M)
Bar Chart of Responsible Investing: ESG, $336 million in 2021 and $298 million in 2022. Social, $56 million in 2021 and $94 million in 2022. Governance, $114 million in 2021 and $105 million in 2022. Environmental, $257 million in 2021 and $275 million in 2022.
2022 Total investment: $772 million, which is approximately 3% of AUM.

* Reflects the correct amount due to a data error in the 2021 Sustainability Report.

Assets with UN PRI

Our assets managed by UN PRI signatories remained stable year over year (i.e., 2021 and 2022) representing 25% of AUM and 79% of the total externally managed assets, approximately $8.9 billion.

Investments with managers that are UN PRI Signatories
Bar chart. Fixed income, $3,282,000,000 in 2021 and $3,155,000,000 in 2022. Equities, $1,003,000,000 in 2021 and $675,000,000 in 2022. Alternatives, $2,591,000,000 in 2021 and $3,223,000,000 in 2022.
2021* Total investment: $6.9 billion, which is approximately 25% of AUM.
2022 Total investment: $7.1 billion, which is approximately 25% of AUM.

* Reflects the correct amount due to a data error in the 2021 Sustainability Report.

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