We assess environmental, social and governance (ESG) standards because we believe that a combination of legislation, regulation and changing societal preferences will impact negatively on the most unsustainable business models.
Our ESG analysis does not end once an investment has been made. Companies’ ESG characteristics are routinely monitored to ensure that standards do not slip, and where engagement has been prioritised, progress is closely reviewed. Due to the importance that we place on change, we reconsider continued investment in companies if they are hesitant to engage or are not adequately responding to engagement on the most serious issues.
We pay particular attention to any controversies our investee companies have been implicated in and seek to ensure that they are complying with the international standards set out in the UN Global Compact and UN Guiding Principles for Business and Human Rights.
We believe that this approach helps us to control risk, support our aim to deliver consistent long-term risk-adjusted returns to our clients, and contributes towards our ethos of pushing for positive change.