We consider every way a company creates and delivers value for its stakeholders both now, and long into the future. For us, this means looking beyond conventional notions of company performance.
By fully integrating environmental, social and governance (ESG) analysis into the investment process we can better understand the non-financial, or more accurately, the ‘not-yet-financial’ factors that can impact a company’s ability to generate long-term, sustainable returns.
In our view there are three core strands to ESG analysis:
Using our in-house industry frameworks, we identify material ESG factors to understand the potential impact on returns.
We incorporate key ESG factors into the investment case, considering business aspects likely to be impacted. Financial modelling and portfolio construction are then undertaken.
We monitor and engage with investee companies both privately and collaboratively. We participate in proxy voting and disclose and report on our views.
Our ESG vision
As references to sustainability issues become increasingly commonplace within the investment industry, Martin Currie can quite rightly claim genuine leadership in this space.
Knowing how a company identifies and manages potential environmental issues such as climate change and water scarcity helps us understand how it is preparing for changes to regulation and disclosure requirements, as well as its ability to operate in changing conditions.
Climate change (emissions)
How a company treats its people, customers and wider stakeholders, can give valuable insight into its culture – a good proxy for long-term business success.
Data protection and privacy
Equality and diversity
Human capital management
Product safety and liability
We value transparency and clear accountable governance structures, paying considerable attention to the extent to which a company demonstrates alignment with the interests of long-term investors.
Board leadership and independence
Accounting and audit standards
Stewardship Annual Report 2021
Investing to improve lives
Highlighting the results of our sustained commitment to the development of productive ESG engagements embedded in our investment process.
The Martin Currie Stewardship Institute leverages our extensive in-house expertise and global investment reach to share original insights and best practice on Stewardship and ESG issues, focusing on topics that are aligned to the long-term investment horizons of our clients’ capital such as human rights and modern slavery, climate change, decarbonisation, UN SDGs and diversity.
David Sheasby, Head of Stewardship & ESG and John Gilmore, Stewardship & ESG Specialist highlight that while focusing on climate action, it is important not to lose sight of other societal and developmental priorities that may occur as the economy is reprofiled.
- Date published
- 15 Jun 2021
- Stewardship Institute