Investment team's approach to Responsible Investment
Given the varying nature of the asset classes we manage, the geographies in which they operate and the size of our holdings, each of our investment teams’ responsible investment approaches are tailored to individual investments and the specific issues in question. In all cases there is a focus on material ESG issues that could impact on investment value over all periods, but particularly over the long term.
Each listed equity team has a process for identifying and assessing the relevance and materiality of ESG issues for their respective asset classes. For all active equity teams, company engagement is a key source of insights on such risks and opportunities. These insights, coupled with the best available third party ESG research, are assessed by the relevant company analyst and incorporated into stock notes or reviews and influence company valuations. Some teams assign specific ESG scores, while others incorporate the assessment into broader views of company management and business quality. All active equity teams hold regular team meetings to discuss company assessments, including ESG factors. Proxy voting rights are an important asset for listed equity investors and exercising these rights is a core part of our stewardship responsibilities.