Our approach to ESG
As managers of investment portfolios, we have a responsibility to ensure that the companies we invest in are contributing positively to the environment and society as well as enhancing shareholder returns.
Our approach to ESG
We are always evolving our policies to ensure we work to improve investor outcomes. We believe companies that operate responsibly are better positioned to offer investors sustainable, positive returns. As long-term active managers, we are aware that an environmental, social and governance (collectively ESG) event or condition, if it occurs, can cause an actual or a potential material negative impact on the sustainability of a business (sustainability risks) and therefore its future revenue-generating ability.
We evaluate and integrate sustainability risks into our investment decision making process and risk monitoring to the extent that they represent potential or actual material risks and/or opportunities to maximising long-term risk-adjusted returns consistent with our clients’ objectives.
Our investment decision making process drives investment performance, which in turn is used to determine variable remuneration outcomes. We believe that the direct link between variable remuneration outcomes and ESG factors (including sustainability risk) can be strengthened and enhanced and will look to consider this over the course of the next year.
We have a responsibility as an active asset manager to continuously engage with investees and to enact change through stewardship.
We do not currently consider the principal adverse impacts of our investment decisions on sustainability factors (environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters) on the basis that, while sustainability risks are incorporated into our investment decision making processes, the relevant information required in a principle adverse impact statement remains in draft form and has not yet come into effect We remain mindful of future developments in regulatory clarity in this regard.
ESG in action
We apply the same standards to our own business that we would like to see in the companies we analyse.
Principles and values
Our principles and values define the behaviours we consider to be critical for our success. We measure employee performance against the business’s values.
We have been certified carbon neutral by Natural Capital Partners. We have offset our carbon emissions, including all business travel and commuting.
We have enhanced staff maternity pay and annual leave entitlement. Employees receive medical insurance, including wellbeing and stress management support.
Voluntary gender pay-gap reporting
We voluntarily publish our gender pay gap. Whilst comparable to industry peers, we continue to take action to move these results in a positive direction.
Our employee-led charity committee coordinates activities raising funds for charities, earning matched funding from the business.
Diversity and inclusion
More than 33% of the Non-Executive Directors on our PLC board are female. We continuously work on ways to improve diversity and inclusions at a firm and industry level.
We are a signatory and support of various industry bodies.
- UN Principles for Responsible Investment
- UK Stewardship Code
- Ceres / PRI Amazon Deforestation Resolution
- Investment consulting industry initiative, driven by UK Sustainable Investment and Finance Association and the Association of Member Nominated Trustees
Portable alpha – increased returns with reduced risk
Portable alpha – increased returns ...
The investment strategy known as “portable alpha”, the combination of absolute return hedge funds and…5 min read