We believe incorporating material, nonfinancial ESG factors into investment selection and risk management has the potential to enhance long-term investment returns.
Arch adopted a formal Responsible Investing (RI) Policy in early 2022. Our RI Policy reflects our approach to sustainable value creation and requires that we consider ESG factors, including climate change, in the investment process.
We have invested $871 million (4% of AUM) in investments with a specific ESG mission, including green bonds valued at approximately US$30 million issued by the U.K. and German governments.
Assets with UN PRI
We have invested approximately $4.5 billion (21% of AUM) with managers that are UN PRI signatories. This represents a 20% increase year-over-year from 2020 to 2021 and our portfolio exposure to fossil fuels and thermal coal trended down in 2021.