As a long-term investor, Nikko AM Australian Equities is focused on the fundamental performance of the corporates in which we invest. The consideration of responsible investment principals is consistent with our long-term valuation approach.
Nikko AM Australian Equities supports the consideration of Environmental, Social and Governance (ESG) factors by corporates. In the long-term ESG issues can materially affect corporate valuations. By incorporating all material factors at the valuation level (including ESG factors) we can consistently and comprehensively incorporate responsible investment principles into our investment process.
By incorporating ESG factors into the valuation process at the company level, we can raise issues with companies and positively influence behaviour.
As our analysts are experts in the material drivers of company valuation and are in communication with company management they are best placed to value ESG factors into the investment process and also to promote more responsible management behaviour.