We have been pro-actively conducting investment research on Environment, Social, Governance and Workplace (ESGW) factors since 2007 and have been a leader in incorporating these ideas in systematic portfolios ever since.
Sustainability issues may have a financial impact on companies, and we systematically analyse risks and opportunities associated with Environmental, Social, Governance and Workplace (ESGW) factors. The guiding principle for incorporating ESGW signals into our investment process focuses on how these factors may enhance or detract from shareholder value over both short-term and long-term horizons. We systematically incorporate ESGW signals into our investment process in the same manner as all our other investment signals.
Environmental issues include, but are not limited to, emissions intensity, environmental disclosure, energy efficiency, company-level environmental policies etc. Social issues include, but are not limited to, demographics, product responsibility, human rights and community issues. Governance issues include, but are not limited to, board quality, independence and experience, independence of the audit and remuneration committees, the quality of risk management systems and the quality of the CEO. In 2019, we extended our research to include ‘Workplace’ issues that assess factors including workplace safety, training and development, employee engagement, diversity and so on.
Actively exercising our stewardship responsibilities is an integral part of Vinva’s approach to ESG. Stewardship is also known as active ownership.
Vinva’s stewardship approach includes the following:
- Voting at shareholder meetings
- Engagement with current investee companies on ESG issues
- Participating in class actions
For further details on our approach to ESGW and ESG Stewardship, please follow this link
We support and demonstrate the 6 key principles of the PRI in our investment approach:
- Principle 1: Incorporate ESG issues into investment analysis and decision-making processes.
- Principle 2: Be active owners and incorporate ESG issues into our ownership policies and practices.
- Principle 3: Seek appropriate disclosure on ESG issues by the entities in which we invest.
- Principle 4: Promote acceptance and implementation of the Principles within the investment industry.
- Principle 5: Work together to enhance our effectiveness in implementing the Principles.
- Principle 6: Report on our activities and progress towards implementing the Principles.