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.