We integrate ESG factors into our investment process to improve long-term returns for our investors. We do this not only when identifying which investments to invest in, but throughout the time we hold them in our funds.
Our approach involves evaluating both financial and non-financial factors, whereas traditional investment methods focus primarily on financial criteria like revenue, or earnings forecasts. These factors encompass a range of issues, such as the environment (climate change, pollution, renewable energy), society (human rights, community impact, employee safety and diversity), and governance (ethical standards, transparency, compensation, and voting).
We believe considering these factors, as well as the risks and opportunities they present, is essential for successful investment management. If a company does not meet the expectations of its customers, stakeholders, and communities regarding any of these factors, it could – amongst other things - lose its social license to operate. This could negatively impact the company's long-term success and investment returns.