The last few years have been a perfect storm of geopolitical uncertainty. However, when societies are divided by politics, inequality and climate concerns, investors can help drive positive change by supporting companies that act responsibly and sustainably.
As part of the responsible investing team within Barclays Private Bank, Mitali Sarang’s position has evolved since she joined four years ago.
From being instrumental in the creation of the Barclays Private Bank’s responsible investing policy for its Discretionary Portfolio Management business to enhancements to environmental, social and governance integration in client portfolios, Sarang’s focus has been the commercialisation of sustainable initiatives and communicating the benefits of this strategy to clients.
Increased scrutiny
“Responsible investing is operating in an extremely polarised and a progressively complex environment,” says Sarang. “Geopolitical headwinds have intensified scrutiny around responsible investing, particularly while regulatory expectations and client demand for transparency continue to evolve.
“Maintaining a disciplined and a well-governed approach to sustainability has become increasingly important, and so a central part of the responsible investing team is to support our sustainable portfolio managers in making investment decisions that deliver positive, long-term outcomes for our clients.”
To achieve this, Sarang says Barclays Private Bank focuses on a two-pronged approach: “Increasingly, we are seeing that clients want to understand not just the principles behind what we do within responsible investing, but also how these translate into real portfolio outcomes.
“By combining data research and ongoing monitoring, we aim to provide the transparency our clients demand, while highlighting how this influences investment returns.”
The second strand involves maintaining credible independence. “We provide an independent perspective so that these sustainability considerations are applied robustly and aligned with client expectations.”
Continuing corporate stewardship
The responsible exercise of ownership is a core part of Barclays Private Bank’s sustainable investment approach. “Through engagement and voting, we encourage companies to strengthen their governance, improve disclosure, and manage risks more effectively.”
Recent political changes have contributed to a more challenging landscape, adds Sarang, and that has implications for how investors in general approach stewardship.
“We believe that political developments can influence corporate behaviour indirectly through regulation, public discourse and stakeholder expectations. In practical terms, this hasn’t reduced the importance of stewardship, but it has changed the context in which the engagement can take place.
“Some companies are becoming more cautious in how they communicate on certain topics, while others are focused more explicitly on the financial materiality of issues. For their part, investors are increasingly placing emphasis on the economic rationale and risk management when discussing these measures.”
Robust analysis
For our investee companies to maintain sustainable practices, analysis and stewardship must be robust. Sarang cites one example that illustrates Barclays Private Bank’s commitment to responsible investing within client portfolios.
“Sometimes a company’s formal policy doesn’t match its purported sustainable practices. A case in point involved an agricultural equipment company where our analysis identified a potential deforestation risk.
“Although legal standards were met, the company lacked proactive controls, particularly in sensitive regions. We identified a gap between policy and practice that could expose the business to reputation and regulatory risks.
“Ultimately, the uncertainty around how these risks were managed by the company meant it didn’t meet the criteria required for inclusion in our sustainable portfolios, so we didn’t invest.”
This focus on diligence gives clients confidence in the sustainability credentials of their portfolios, says Sarang. However, clients approach responsible investing from different starting points, so have different priorities.
She explains: “Some are primarily motivated by alignment with organisational values or mission, which is often the case with charities and foundations, while others are more focused on financial risk management.
“In many situations, these objectives overlap, so our role is to provide robust analysis and transparency so that clients can make informed decisions consistent with their priorities.”
Even in a more polarised public environment, investment objectives themselves tend to remain consistent, adds Sarang.
“We share the same fundamental goal as our clients – to preserve and grow their capital across economic cycles – and responsible investing supports that objective. We navigate these different perspectives among clients and provide them with the transparency that helps them make informed decisions.
Fast facts
£228bn in client assets and liabilities and manages £40bn in discretionary portfolios*
Over £3bn AUM for charity and not-for-profit clients*
*As of 31 December 2025 across Barclays Private Bank and Wealth Management
What we do
Barclays Private Bank provides a full suite of specialist investment, banking and lending services – backed by 330 years of Barclays Group experience. Our dedicated charities and not-for-profits team takes the time to understand your unique requirements, and creates bespoke solutions that meet your financial goals and align to your values. Visit us at privatebank.barclays.com/charities.
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