We recognise the important role environmental, social and governance (ESG) related issues play in the creation of long-term investor value and believe that the informed consideration of these factors can enhance our investment processes. Companies that successfully manage their ESG risks and opportunities and proactively follow good ESG practices may experience risk-adjusted outperformance over the longer-term. This belief underpins our commitment to being a responsible investor.
ESG factors are, therefore, key considerations in our investment process and feed into our overall assessment of the quality of a business. Our research analysts and portfolio managers follow a process that considers the potential impact of ESG issues related to investments in our portfolios, and we seek partners that do the same. This analysis informs, to varying degrees, our asset allocation, stock selection, portfolio construction, shareholder engagement and voting.