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Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.

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Specialists in equity portfolios in Asia Pacific, emerging markets, global and sustainable investment strategies

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Our focus areas

At First Sentier Investors, we're driven by our Responsible Investment principles. Our commitment to RI research and analysis on topics of importance to ourselves and our clients enables us to make more informed decisions that not only benefit our clients, but our environment and our society.   To do this, we use a wide variety of tools and resources some of which are listed below.

As long-term investors, we know that the investment decisions we make today impact communities in the future. We review our RI strategy every three years to build on our approach to stewardship, and ensure we are proactively thinking about how to address emerging issues in our investment processes.

At firm level we are currently focused on the following four key issues: climate change, human rights and modern slavery, diversity and biodiversity.

Climate change

For further information on our approach to climate change, see our 2020 Responsible Investment Report.

Climate change resources

At First Sentier Investors, we're driven by our Responsible Investment principles. Our commitment to RI research and analysis enables us to make more informed decisions that not only benefit our clients, but our environment and our society. To do this, we use a wide variety of tools and resources some of which are listed below.

We accept the science of climate change and support the global transition to net zero emissions in line with the goals of the Paris Agreement. Climate change and global warming pose systemic risks to society and the global economy. It impacts the availability of resources, the price and structure of the energy market, the vulnerability of infrastructure and the valuation of companies. For investors it poses a complex problem which has already, and will continue to, impact on different investments in a number of ways.

In response to this, in 2016 First Sentier Investors established a climate change working group to take a broader view of the issue and its investment implications. From this work, we identified five key areas of climate change risk and opportunity facing investors today and into the future.

  • Physical Impacts of Climate Change
  • Carbon Emissions / Regulatory Intervention
  • Business Transition / Stranded Asset Risk
  • Fiduciary Duty / Legal Risk
  • License to Operate/Reputational Risk

We have sought to align our Climate Change Statement with the Task Force for Climate Related Financial Disclosure's recommendations.

Also released is a series of white papers (below) which present the context for each issue, the implications for investors, and provide guidance on how investors can incorporate these issues into their risk management and investment decision-making processes.

Human rights and modern slavery

For further information on our approach to climate change, see our 2020 Responsible Investment Report.

Modern slavery & human rights resources

First Sentier Investors has developed a Human Rights Toolkit to help all investment teams globally better manage human rights risks in our portfolios. The toolkit provides research and guidance for each of the following steps:

  • Identifying companies with a risk of human rights in their operations or supply chains
  • Assessing companies’ approach to the issues identified
  • Engaging with the companies identified as at risk of human rights violations.
  • Internal reporting on our progress

This has formed the basis of our approach to addressing human rights risks within our investment portfolios, which we are required to report on in accordance with legislation in Australia.

Exclusions

Our approach to exclusions is outlined in section 2.4 of our Global Responsible Investment and Stewardship Principles and Policy. Our current exclusions are as follows:

Controversial Weapons

  • Aerojet Rocketdyne Holdings Inc
  • Anhui GreatWall Military Industry Co., Ltd.
  • BAE Systems PLC
  • Bharat Dynamics Limited
  • General Dynamics Corp
  • General Dynamics Corp
  • Hanwha Corp
  • Larsen & Toubro Limited
  • LIG Nex1 Co Ltd
  • Northrop Grumman Corp.
  • Poongsan Corporation
  • S&T Dynamics Co. Ltd.
  • Thales SA
  • Walchandnagar Industries Ltd.
     

Tobacco

  • Al-Eqbal Co. for Investment Plc
  • Altria Group Inc
  • British American Tobacco (BAT) Uganda Ltd.
  • British American Tobacco Bangladesh Co Ltd
  • British American Tobacco Kenya PLC
  • British American Tobacco Malaysia Bhd.
  • British American Tobacco p.l.c.
  • British American Tobacco Zambia P.L.C.
  • British American Tobacco Zimbabwe Limited
  • Ceylon Tobacco Company Plc
  • Eastern Company
  • Godfrey Phillips India Ltd.
  • Golden Tobacco Limited
  • Imperial Brands PLC
  • ITC Limited
  • Japan Tobacco Inc.
  • Karelia Tobacco Company Inc.
  • KT & G Corporation
  • NTC Industries Limited
  • Pakistan Tobacco Co. Ltd.
  • Philip Morris (Pakistan) Limited
  • Philip Morris International Inc.
  • PT Bentoel International Investama Tbk
  • PT Gudang Garam Tbk
  • PT Hanjaya Mandala Sampoerna Tbk
  • PT Indonesian Tobacco Tbk
  • PT Wismilak Inti Makmur Tbk
  • Scandinavian Tobacco Group A/S
  • Swedish Match AB
  • Tanzania Ciggarette Co. Limited
  • Union Tobacco & Cigarette Industries Co.
  • Universal Corp

Further resources

The following tools and resources have been developed by or are used by our Responsible Investment team and our broader investment teams.

Responsible investment reports

Read our latest annual Responsible Investment Report

Download report

Read our recent Navigating investment in a post-COVID world report

Download report

http://www3.weforum.org/docs/WEF_Global_Risk_Report_2020.pdf
2 ILO, 2016
3 https://www.wgea.gov.au/newsroom/media-releases/ more-women-at-the-top-proves-better-for-business
4 https://eige.europa.eu/gender-mainstreaming/policy-areas/economic-and-financial-affairs/economic-benefits-gender-equality
5 Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy WEF January 2020