ESG (Environmental, Social and Governance)
We comply with legal requirements and codes of best practise relating to:
- Social and economic development
- Good corporate citizenship
- The environment, health and public safety
- Customer relationships
- Labour and employment
We have not to date reduced ESG into a quantifiable element in our investment decision making process. Rather, we argue that these factors are better suited to the subjective and unquantifiable element of investment decision making.
We appreciate that ESG allows investment managers to reduce risk to investment asset valuations (short-termism, passing on externalities, etc), as well as potentially improve long-term risk adjusted returns, to meet beneficiary liabilities better.