Hedge fund allocator, Aurum Fund Management says ESG is a key pillar of the group's investment research and risk approach, alongside investment and operational due diligence. Through manager engagement, Aurum says it also seeks to galvanise the hedge fund industry to have a positive impact.

By including ESG in its risk management process, Aurum engages with underlying managers to ensure they are aware of ESG opportunities, such as potential alpha generation associated with the transition to a low-carbon economy.

In Aurum's fund investments, consideration is also given to where an underlying manager sits on the ESG integration spectrum so that ESG risks can be considered on a strategy-by-strategy basis. This approach involves regular engagement, ongoing monitoring and assesses all the portfolio's strategies, according to the firm.

Aurum also implements ESG via its Embedded Impact approach where donations are made to selected environmental and humanitarian charities which are structured to increase proportionally as its assets under management increase. In 2022, over $7 million was donated to supported programmes, including direct support for Ukrainian refugees and for the Ocean Risk and Resilience Action Alliance.

"We see our role as a specialist hedge fund investment manager as being able to help to develop and share industry ESG best practice. We are proud to accept this award in acknowledgment of this and our collaborative approach across the hedge fund universe," said Dudley Cottingham, chairman at Aurum Fund Management.