GAM Enhances Sustainability Efforts with New Role

Katherine Roach will take on the firm’s expanded sustainability lead position, augmenting the work of outgoing CSO Stephanie Maier.

Swiss asset manager GAM Investments has appointed Katherine Roach to the newly created position of Global Head of Sustainability and Investments Business Management, as part of wider efforts to advance its sustainability and responsible investing practices.

This is an expansion of Roach’s previous role as Head of Investments Business Management – which she has held for two and a half of her nearly five year tenure at the asset manager – through which she will oversee the integration of sustainability governance and oversight at GAM, building on the foundations laid by the firm’s outgoing Global Chief Sustainability Officer (CSO) – Stephanie Maier. The firm had CHF 63.8 billion (US$72.2 billion) in assets under management as of Q1 this year.

“GAM is entering a new phase of maturity in its sustainability journey, having established a strong reputation and credibility in this space under Stephanie’s leadership,” Roach told ESG Investor. “GAM’s asset owner clients have shown demand for sustainability and responsible investing, as they seek to align their investments with their values, goals, and regulatory requirements. [We] have been responding to this demand by providing clients with a variety of investment solutions that meet their sustainability needs and preferences.”

Roach’s primary priority in her expanded role at the asset manager will be to fully embed, optimise and scale GAM’s sustainability processes for future company growth. She will also ensure that the firm’s sustainability goals are aligned with its investment oversight and controls framework, and that it meets its obligations and expectations.

“Katherine was the right fit for this role because she has extensive experience and expertise in both sustainability and investments business management,” GAM told ESG Investor in a statement. “She has been effectively performing this role for the past 18 months, leading several key initiatives [and] has demonstrated leadership and collaboration skills in her previous roles”.

Accelerating sustainable activities

Roach has previously played a key role in implementing and running sustainability processes from the investment side, and will now take full ownership and responsibility for further embedding and optimising them in close partnership with GAM’s investment and operations teams. This will entail the development of ESG portfolio reviews, including tools such as the Principle Adverse Impact template, which links the investment manager’s needs with regulatory requirements.

She will be supported by a six-strong team responsible for overseeing and implementing GAM’s sustainability and investment management oversight frameworks, supporting key functions across the business, and engaging with external stakeholders on sustainability matters. The team has already developed the Net Zero Alignment Assessment Tool (NZAAT), which supports the firm’s climate plan and net-zero engagement strategy.

In addition to Roach’s appointment, GAM has also promoted Joe Hutchins to the position of Senior Manager for Responsible Investment. He will continue to work alongside Meera Patel, Senior Manager for Sustainable and Thematic Investment, alongside whom he will underpin the efforts of the sustainability team.

“Sustainability and responsible investing remain important for GAM [and] form part of the firm’s fiduciary duty to clients, its corporate responsibility to society, and its strategic vision for the future,” said Roach. “They can enhance long-term returns, reduce risks, and create positive impacts for customers and the world, [while] recognising that sustainability and responsible investing are key drivers of demand and differentiation in the asset management industry.”

The Swiss firm is equipped with a range of investment vehicles that apply basic ESG screening and integration, and which pursue specific sustainability themes and outcomes.

“[The team and I] are committed to ensuring that GAM stays ahead of the curve in terms of sustainability innovation, data integration, reporting, and controls, and that it continues to offer a wide range of funds that satisfy various sustainability criteria – such as Sustainable Finance Disclosure Regulation (SFDR) Article 8 and 9,” said Roach.

GAM’s Sustainable Climate Bond fund, classified as Article 9 under SFDR, celebrates its third anniversary this year. The vehicle invests in green, social, and sustainability bonds that finance projects with positive environmental and social impacts – such as renewable energy, social housing, and water management. The fund targets net-zero emissions by 2050, and reports on its climate alignment using the NZAAT and Principle Adverse Impacts frameworks.

Other GAM funds are classified as Article 8 under SFDR.

New avenues of growth

Other projects the team has been working on include enhancing the integration of ESG data into GAM’s investment processes and systems and expanding its reporting suite – both internally and externally – to increase transparency and accountability on the firm’s sustainability performance and activities.

The team has also been implanting controls and oversight mechanisms to ensure GAM’s compliance with sustainability policies and commitments – including on exclusion, engagement and stewardship.

Going forward, the team is in the early stages of exploring the development of a biodiversity tool, which would follow a similar approach to the NZAAT to measure and monitor the impact of GAM’s investments on biodiversity and natural capital.

“The team recognises that biodiversity is a critical and emerging issue for sustainability and responsible investing, and that GAM has a role to play in preserving and restoring the natural environment,” said Roach.

Departing CSO Stephanie Maier, for her part, will reportedly join index provider FTSE Russell, a subsidiary of the London Stock Exchange Group, in the newly created role of Global Head of Sustainability at the start of September.

“We would like to take this opportunity to thank Stephanie very much for her contribution, leadership, energy, and commitment to GAM over the past three-and-a-half years, and for her work to establish and embed a high-quality, award-winning sustainability and responsible investing function that Katherine and the team will continue to manage and build on,” GAM said.

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