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Both our research and active ownership programmes hinge on Environmental, Social and Governance issues that can affect investment performance. We use clearly defined criteria to ensure that our efforts are most relevant to the valuation of companies within their particular sector and relevant for our clients.

Our RI solutions draw upon our long-term, global, multi-asset approach and RI Search© along with our stewardship activities.


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EnvironmentalSocialGovernance

Environment

Environmental Risks: We strive to understand how environmental risks can affect the performance of companies, and why companies will or will not deal with the related risks and opportunities.

Criteria:

  • Liabilities from contaminated sites and other historical liabilities
  • Risks from spills & releases, toxic emissions, hazardous waste, compliance with environmental regulations
  • Existence, number and qualification of environmental, health & security staff, evaluation of environmental KPI
  • Environmental business development

Social

Human capital management: we identify issues around human capital management, and look into what companies can do to address them.

Criteria:

  • Quality of working conditions
  • Career development training
  • Hiring rate trend
  • Health and safety
  • Relationship with suppliers
  • Labour relations

Governance

Corporate Governance: We identify issues and analyse the risks relating to the organisation of companies.

Business Ethics & Reputation issues: We aim to identify companies or sectors that are exposed to ethical risks such as bribery or corruption, or whose geographical footprint raises a fundamental risk that may affect the company's reputation as well as that of its shareholders.

Criteria:

  • Board leadership
  • Executive performance and remuneration
  • Audit integrity and internal control risks
  • Protection of shareholder rights
  • Bribery
  • Corruption
  • Human rights