ACT for Companies
The ACT Framework is comprised of three key pillars, each with three components.
Each of the pillars is designed to give an oversight into how a company considers and develops its culture. This includes its strategic approach, objectives and process.
The Pillars
The Components
How is the framework used?
Asset managers use the ACT Framework to examine practice across the whole business. It supports strategic thinking, ensuing actions and appropriate oversight and monitoring that help to create and maintain good culture.
The framework applies to investment companies across asset classes, types and size, including smaller firms or those at the beginning of their journey.
Clients want more visibility on culture and how that permeates the company environment as well as its investment practice. But they don’t expect or want all companies to be the same. The focus of responses is on the ‘why’.
“What resonated with us was its ability to quantify corporate culture, something often overlooked despite being a fundamental part of our people-focused industry.
We believe good culture translates to better client outcomes, particularly in mitigating risk. The level of industry support behind ACT also signalled that this was a long-term movement, not a passing trend.”
Alex Matcham, Head of UK Wholesale Distribution, M&G Investments
“ACT just makes good business sense. Being able to proactively present our culture to our prospects and clients within a structure that allows them to like-for-like assess us against our peers is an area we feel we can confident in.”
Jayne Fieldhouse, Managing Director, Head of Global Institutional Marketing at RBC Bluebay Asset Management
How do you become a Signatory?
1. Commit
Collect and collate data from internal teams for reporting, supported by ACT Guidance
2. Disclose
Complete report on the Door due diligence platform* and share with City Hive
3. Pledge
Commit to Signatory Pledge to obtain Signatory Status
4. Upskill and learn
Academy access for all employees and Think Tank resources; reports, blogs, data
5. Publicly communicate status
Share ACT Statement and ACT-Mark on website.
6. Monitor and drive progress
Use ACT to drive internal progress. Update annually.
Become a Signatory
*Only firms that have been verified as Signatories with City Hive can use the ACT-mark or Signatory description.
The ACT FRAMEWORK
ACTION
Building a firm-level statement that sets out the commitment to diversity, equity and inclusion (DEI) within its core values along with the vision of the impacts this is expected to have on the business.
The firm’s approach to sustainability and culture, in particular how these are embedded in values and the intended real-world impacts through investment practice.
The externally conducted initiatives that are supported by the firm, including industry collaboration.
The internal forums that are available to employees to influence and shape culture.
The commitments that the firm is publicly signed up to, that will change its business practice and/or industry, including targets and associated data.
Identification of the nominated accountable executive to ensure the firm enacts the vision, including through provision of resources.
The set of internal policies covering all areas of employee activity and well-being.
This includes; recruitment, training, working practice, leave and safe-guarding.
CHALLENGE
The steps taken to ensure that there is a subject matter expertise on DEI and on sustainability and culture that supports the vision set out by the firm.
The way in which progress is measured, including whether the resources allocated are sufficient.
The way external initiatives are selected, supported and assessed for impact.
The collection of appropriate data and how this challenges any targets that have been set.
The creation of measures that will enable progress towards targets. The collection of feedback and engagement with staff on rate and integrity of progress.
Ensuring that policy coverage is extended to all staff, that best practice is being pursued and that uptake is being measured and monitored.
TRANSPARENCY
Being able to demonstrate the real-world impact articulated in the vision and that this is connected to investment practice as well as internal business practice.
How the firm demonstrates the impact of collaboration with peers and stakeholders in the industry towards change objectives.
Contributions to rebuilding public trust in institutions through demonstrations of good culture.
Disclosure on progress towards targets and engagement with staff.
Ensuring a monitoring process for progress against commitments and that institutional knowledge of issues and good-practice is current.
Demonstrating to stakeholders how the firm is changing and how it values its people; e.g. recognition, development, support and retention efforts.
