Companies need to have sustainable practices across environmental, social and governance factors (ESG) in order to maintain their social licence to operate, which is necessary to ensure their long-term profitability.
The importance of sustainability is clear. But assessing ESG factors is complex and rarely black or white. It can’t be done without considering a range of stakeholder needs and it requires substantial judgement. As such, we strongly believe independent research is important as every company’s place in society is more than the sum of its reported statistics. Like all other aspects of investing, unfortunately, best efforts and a well-guided moral compass, do not yield perfect results and we continue to learn from, and adapt to, changing societal expectations.
We take our responsibilities as stewards of capital seriously and are in a fortunate position to be able to make a positive difference. Behind each of our investment decisions is a person eager to do just that.
ESG assessments are integrated in our investment process from the genesis of the investment thesis to the point at which we sell our last share. We take our voting rights seriously and vote all our shares when entitled to. Find out more here. We are active stakeholders of our investee companies and regularly engage with management and the Boards of these companies. At times we agitate for change where we believe it is necessary. We treat problems as our problems, not just to be passed on to a new set of owners. We recognise, however, that engagement can also have its limitations and, although rare, sometimes walking away is the most responsible thing to do.
As investors, we have always insisted on thinking for ourselves, taking a long-term perspective and acting in accordance with our values. Our approach to responsible investing is no different. We aspire to deliver on behalf of clients who share our belief that investing responsibly is an integral part of investing well.