We incorporate ESG issues into our investment analysis and decision-making processes. All stocks which are researched are given separate ratings for environmental, social and governance issues by the relevant global sector research analyst.
We are active rather than activist owners. We will engage with managements to ensure adequate reporting and disclosure of ESG issues and will actively engage to discuss matters of concern. If a serious matter arises and we fail to achieve a satisfactory resolution our ultimate sanction is to sell the shares.
For every company formally researched, their approach to ESG is reviewed and rated. This impacts which companies we invest in. Each of the investment team is responsible for allocating this rating as part of the research process. We will engage with all companies we own, through our regular communication with them.
Edinburgh Partners uses an independent service provider to assist it in determining Edinburgh Partners Proxy Voting Policy and in implementing its proxy voting decisions. The provider Edinburgh Partners uses is ISS. Specifically ISS assists Edinburgh Partners in the proxy voting and corporate governance oversight process by developing and updating the ISS proxy voting guidelines and by providing research and analysis, recommendations regarding votes, delivery of proxy instructions and record keeping and reporting services. Edinburgh Partners’s decision to retain ISS is based principally on the view that the services ISS provides, subject to Edinburgh Partners oversight, will generally result in proxy voting decisions which are favourable to shareholders’ interests. Edinburgh Partners portfolio managers will review the ISS recommendations and may instruct votes in a manner other than in line with those recommendations where they have good reason to believe it is in the best interests of the shareholders. In these instances full documentation is maintained of any variation from the ISS voting recommendation and reported to the relevant clients.