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.
Our annual Stewardship Report highlights our thinking on
ESG-related matters, and details new developments during the latest reporting period.
We aim to exercise our proxy voting responsibilities in an accountable and transparent manner. We report on our proxy voting decisions annually.
Statement on the Code for Responsible Investing in South Africa (CRISA)
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.
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.
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.
Our integrated ESG process will sometimes lead us to reject investment in counters, even where these form part of popular indices.
In this article, we weigh up the investment case for commodities given current market conditions. Commodity companies are prone to boom-and bust cycles, and there is currently much debate around the sustainability of the current run-up in commodity prices. The team weighs in on how factors like decarbonisation, the environmental, social and governance (ESG) investing phenomenon and a renewed focus on capital discipline are impacting the commodity cycle.Read more
Arguably, awareness of environmental issues has never been higher. Extreme weather events and our sense of urgency are on the rise, and the UN Climate Change Conference COP 26 (Conference of the Parties, summit 26) in Glasgow resulted in a steady stream of headlines on this topic towards the end of last year.Read more
As bottom-up investors we steer clear of macro forecasts. However, stock pickers risk short-changing their investors if they do not take cognisance of the environment within which companies are operating.Read more