Our approach to ESG
Our commitment to our clients is to consider the bigger picture when it comes environmental, social and governance (ESG) investing. We resist a formulaic or tick-box approach, and ensure that ESG considerations are fully integrated into our investment process and applied in line with our 3M philosophy.
We believe businesses must be sustainable to thrive and deliver shareholder value in the long term. Therefore, we do not believe ESG investing should be a simplistic, add-on or stand-alone process. Moreover, ESG is not just about the now, but also about the future. Part of our process is to engage with companies to ensure they improve their overall ESG record. As a result, not only do we invest in companies with good ESG track records, but we will also consider investment in companies that show a clear commitment to future improvement. After all, sometimes the biggest win for society is in helping perceived laggards make the transition to delivering on more sustainable outcomes. Importantly, we view ESG considerations holistically. ESG should not just about the E (environment). Social and governance factors require due consideration.
While our choices can sometimes appear counterintuitive at first glance, we believe our bigger picture perspective and longer-term approach can help to achieve more considered ESG outcomes, while also rewarding our investors in the long run.
More insights into our ESG Approach
Our annual Stewardship Report highlights our thinking on
ESG-related matters, and details new developments during the latest reporting period.
Our voting record
We aim to exercise our proxy voting responsibilities in an accountable and transparent manner. We report on our proxy voting decisions annually.
Other documents
Statement on the Code for Responsible Investing in South Africa (CRISA)
Case studies
How we weigh environmental factors (Glencore)
Glencore’s poor ESG record means that many investors have deemed it unsuitable for investment. This case study outlines how we think about environmental and governance risks and shows how we work with companies to secure better outcomes.
How we weigh social factors (Discovery)
The primary goal of Discovery is to make people healthier and to improve and protect their lives. This case study outlines why we believe the market is not rewarding them suitably from an ESG perspective.
How we weigh governance factors (JSE)
This case study shows how we actively use proxy voting as part of integrated ESG process, and highlights that governance factors naturally weigh heavily as part of our 3M investment philosophy.
A differentiated perspective - choosing not to invest because of overlooked ESG factors (Nedbank)
Our integrated ESG process will sometimes lead us to reject investment in counters, even where these form part of popular indices.
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