We invest in companies that are developing mining projects, often in remote locations in emerging market nations, and so we must carefully assess, monitor and manage the impact on local communities and environments and ensure that these projects are developed in accordance with responsible investment principles.
Screening and integration is therefore the appropriate ESG incorporation strategy.
Screening: Taurus screens for those projects that can be developed responsibly while carefully managing ESG issues and will reject opportunities where it feels that ESG matters would not be adequately handled regardless of investment returns - ESG is a threshold issue for us. Where we identify fatal flaws in an investment opportunity resulting from ESG issues then we will decline to invest even if the investment returns appear promising.
Integration: We then integrate ESG matters into our investment by investing at multiple stages through project development, and actively engaging with the Board and senior executives in these companies to ensure ESG matters are addressed thoroughly.