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
Board leadership and independence
Accounting and audit standards
Stewardship Annual Report 2020
The Power of Engagement
Active ownership with an integrated ESG-focus delivering sustainable outcomes for our clients.
EU policymakers appear to remain committed to a green stimulus, but will COVID-19 and the massive stimulus packages deployed to deal with it have a direct and adverse impact on the timing of the execution of the Green Deal?
- Date published
- 24 Aug 2020
- Aftermath: Post Covid-19
In the paper, Zed explains how ESG is integrated throughout the investment process. From determining which stocks progress to in-depth fundamental research, the usage of their proprietary ESG risk scoring system and finally how analysis of ESG exposures helps determines the overall portfolio shape.
- Date published
- 20 Aug 2020
- Global Long-Term Unconstrained