Stafford considers strategic issues as part of its strategy and governance arrangements, which then filter down through the organisation into our culture and how we make decisions. The various Investment Committees of our asset service lines considers common priorities, including issues such as demographic shifts, political risks and climate change, and through consensus adopts a harmonised strategic set of priorities.
The various Investment Committees are guided by considerations and priorities of others. For example, the World Economic Forum produces an annual risk outlook assessment which highlights climate change as one of the key business and investment risks facing the financial and economic system over the coming decade. Stafford is aware of and concerned about climate change as a long-term investor in “real assets” that naturally have a long-term horizon (compared with listed or exchange traded assets). As such, the Firm takes a precautionary approach to positioning the business and investing our client’s assets in a way that is cognizant of the long-term risks and opportunities related to climate change, while also recognising the high uncertainty in the future pathways and actions by policy makers and technology shifts.
Thus, through consensus and guidance from reputable and expert organisations, the firms adopts a consensus driven emphasis on sustainability and climate aware investment products. The emphasis driven in part by the distillled priorities and awareness to position the business and our investments for the transition to a lower carbon economy that is already unfolding. Indeed, as we have emphasised in our previous responses, sustainable capital, infrastructure, agriculture and timberland are all vital assets to help support and enable the transition that is required, both in developed and developing economies. Stafford is making efforts to support this transition process through these targeted investment products, as well as striving for higher standards of integration and awareness amongst the investment managers of private equity and venture capital funds that do not have an explicit sustainability themed dimension.
As Stafford Capital Partners is focussed on providing Alternative Investment services with the standard term of the underlying funds being 10 years and more, the investments that we pursue tend to be overall long-term in nature.
Refer to our answers given above in the short, medium and long term considerations.