As an Asset Manager, we believe we have the opportunity to actively contribute through the investment decisions we make and engagement with investee companies, allocating money to those companies that are able to demonstrate strong environmental, social and governance (ESG) credentials, or those that are actively transitioning their business to ensure ESG considerations are fully integrated within their operating models.
We believe that responsible investment is best embodied by the UN-supported Principles for Responsible Investment (PRI). To confirm our approach to responsible investing, we are a signatory to the PRI and are committed to its six guiding principles.
Our Responsible Investment Process consists of two key pillars:
2. ESG Integration
Firstly, we perform a negative screen on potential investment opportunities; seeking to exclude investments in product areas that we do not wish to finance; this leads to the exclusion of companies involved in controversial weapons and tobacco products for example1.
Secondly, we require our investment teams to fully integrate ESG considerations into their investment processes.
To ensure that a robust approach is implemented, we have engaged with Sustainalytics, a global leader in ESG research and ratings. Sustainalytics’ research provides us with insight regarding product involvement and a detailed analysis of a company’s ESG risk factors.
Further, we are committed to proxy voting in the best interest of our investors and accordingly engage with the management of companies in which we invest to ensure that our investors’ assets are invested in well-managed companies which exhibit good governance and deliver shareholder value.