ESG in our investment process
Our approach to ESG integration and active investment
We work in five main ways to integrate Environmental, Social and Governance (ESG) principles into our investment practices:
1. Research and analysis
Our Corporate Governance & Responsible Investment group ensures that all our investment teams have access to industry-leading research on the ESG issues they consider material. Our investment teams consider ESG factors in their respective investment processes, contributing to an enhanced analysis of companies and a better understanding of the risks and opportunities facing them.
2. Engagement
Engagement refers to direct communication between shareholders and the board or management of the company, depending on the nature of the issue. Its purpose may be to better understand a company’s approach to ESG issues or it may be to encourage the company to adopt better practices, including improved ESG-related disclosure and/or more effective identification and management of ESG issues.
3. Proxy voting
Voting our shares responsibly is part of our fiduciary duty and we make our voting decisions independently, in accordance with our custom Proxy Voting Guidelines. The Proxy Voting Guidelines are updated annually to reflect our views on emerging trends in corporate governance and responsible investment, providing an overview of the corporate governance principles we support and how we will vote on ESG-related issues.
4. Collaboration
When appropriate, we work together with like-minded investors, either directly or through organizations/coalitions, to allow us to have greater influence over the ESG practices of the companies in which we are invested. Learn more about our responsible investment commitments.
5. Engaging with regulators and lawmakers
As a firm, we engage constructively with regulators and other lawmakers to ensure the shareholder perspective is heard when changes to laws or regulations are being considered.
