Equities

Across equities, we factor ESG considerations into our investment decision-making process. We actively engage with investees, leaning on the expertise and knowledge across our business as well as the tools and research provided by external data providers and resources gained from our membership in various industry groups and ESG investment forums.

Before we invest:

• ESG risks are integrated into bottom-up research notes used to assess new investments. This forms part of our rigorous assessment of all potential investments, which considers macroeconomic, strategic, financial, and ESG perspectives
• Our decision whether to invest in a company with poor ESG rating is dependent on the severity of the risks that the investments are exposed to and whether we believe these risks are already reflected in a company’s share price
• We exclude certain companies for their level of income derived from their involvement in specific industries and activities that do not align with our ESG objectives
• We rely on supplementary third-party research provided on companies we’re analysing, and the use of research and insights produced by other external investor ESG research teams, as well as third-party research oversight tools that provide a clear view of any risks in our portfolios

After we have invested:

• All funds are reviewed quarterly by our research team and fund managers
• We review external research at portfolio level and discuss justifications for the overall portfolio composition
• If we decide that an investee company has become of serious concern on an ESG basis, our ultimate sanction is divestment