ACT Signatory Journey: ‘Collaborative engagement is key to wider progress’

Image: Andy Clark

A conversation with Andy Clark, CEO at EdenTree, who shares how the team is holding themselves up to higher standards, how they engage with investee firms on culture and learning from experienced peers in the industry.

EdenTree became a Signatory to ACT in 2023. Why then? 

As a responsible business, at EdenTree we view our healthy corporate culture as both an employee and client interest. We were proud to become a signatory in ACT in 2023, reinforcing our commitment to holding ourselves to higher standards across every part of our business. 

What progress have you seen internally since reporting in line with the ACT Framework?

Defining and embodying our culture and values continue to be a focus. At the start of last year we worked with culture consultancy Kin & Co. to capture the voices of every member of the business with a view to creating a new cultural blueprint, not just of our corporate purpose, but also of the behaviours we must all embody day-in-day-out to embody those standards. 

As a boutique firm, how much resource would you say you dedicate to reporting in line with ACT? 

While, as a smaller company, we need to be more strategic and efficient in allocating resource to reporting, the boutique nature of our business means that, to a lesser or greater extent, every department across the company is involved, meaning all staff are fully engaged in and committed to delivering on the ultimate goals of the framework. 

Additionally, how is a smaller firm’s purpose different from a larger firm from the perspective of culture and shaping the industry? 

We are a small business, but we have ambitious goals. Our purpose is clear: we transform the way people invest to build a better tomorrow. In addition to this we are proudly part of the Benefact Group, an international group of financial services businesses that gives all distributable profits to charities and good causes via our ultimate parent, the Benefact Trust, meaning we are all united by this shared goal.

We have a long-standing commitment to creating an inclusive and diverse environment, where everyone is viewed and treated as an individual. Our culture supports and welcomes all, actively fostering a commitment to our wider communities while challenging the status quo and affecting positive, sustainable change.

Are your clients asking about your internal culture? What specifically are they asking for? 

As understanding of the importance of company culture continues to grow, clients increasingly want to know that the company with which they are entrusting their investments is responsible, well-run, and committed to ensuring a working environment that supports and empowers all its employees. Our status as signatory to the ACT Framework is a signal to current and future clients that our commitment to maintaining and building a strong corporate culture fully aligns with their expectations. 

When your fund managers are choosing investments for their portfolios, how do they engage with firms on culture? Are there any measurements or markers in the corporate world that are useful? 

It is essential to evaluate corporate culture when assessing the suitability of an investment for inclusion in our portfolios.

In addition to boosting employee engagement and productivity, we believe a strong culture supports ethical business practices, accountability, and solid compliance foundations. Our approach is to assess two aspects. The first is "tone at the top," which is simply management's ability to provide a clear articulation of purpose, and the culture needed to deliver that purpose. The second is success indicators, a range of organisational measurements that evidence cultural strength. These measures vary significantly, but they can include turnover numbers, whistleblowing reports, employee training, exit interviews, and talent pipeline initiatives. 

We expect companies to be looking at these metrics and trends carefully too, which can be readily assessed in engagements by asking a company about how they audit culture, how it is captured in risk management, and how a company has remedied historic issues such as misconduct.

Why is it important for asset managers to collaborate on improving culture in the investment industry? How do you think ACT can help with this? 

We firmly believe that collaborative engagements are key to wider progress. By leveraging the collective voice and expertise of like-minded investors and other stakeholders we can drive real change. ACT’s role in bringing the industry together to focus on culture and transparency continues to play an invaluable role. 

How do you ensure you are authentic with your clients?

Authenticity starts with knowing who you are, and what you stand for. EdenTree exists to serve its clients who choose us as a responsible, sustainable and impactful investor of their capital. Transparency is at the heart of our approach. Consistent, long-term returns are more likely to be achieved by investing responsibly in sustainable businesses, and it is important to work with clients who both understand and support this ethos. By being clear about our aims, process and outcomes, we believe we can best ensure our clients remain fully aligned with this approach. 

You are speaking at the upcoming Investors ACT 2025 conference. What are you most looking forward to about the event? 

In a world where companies, particularly in the US, are starting to be incentivised to actively play down their sustainable credentials, we should all welcome any opportunity to discuss and share insights into how to continue to drive positive change. I look forward to hearing from experienced peers from across the industry, collaborating to explore how best we can continue to build productive and supportive environments for all our stakeholders.