The investment committee, on behalf of the Board, screens the investment paper which should conform to the investment policy as contained and supported by the SEMS policy. In that regard, the investment committee would interrogate the SEMS issues and ensure that the paper is compliant with the broader ESG covenants. The investment paper is then submitted to the Board after it has been approved by the investment committee, post the due diligence assessments. The Board and the investment committee provide regular quarterly oversight on the issues of portfolio performance where detailed matters including ESG issues are flagged and deliberated in detail.
Before the investment paper is submitted through to the investment committee, it is vetted by the CEO and CIO post its submission to the Harith Internal Reporting Investment Committee attended by all investment directors as well as investment analysts. The CEO and CIO discuss emergent ESG matters with the investment directors responsible for respective investee companies. Material risk issues are identified and followed through by the Audit and Risk committee, where the CEO and CIO communicates with the board sub committee regarding emergent ESG matters. The CEO and CIO also advises on the ESG implications on the portfolio and the risk mitigants adopted to ensure portfolio performance is not adversely affected. In some instances, the CEO and CIO will address the matters with the investee companies directly.
However, this prerogative is usually the role of the investment director responsible for the respective investee company. The oversight role is attended to during investee Board meetings as well as relevant sub committees established to address specific matters affecting the relevant investee company.
The Investor Relations ensures that the organisation gathers and compiles accurate and qualititive information from investee and investment directors. The information is consolidated and disseminated regularly to investors and relevant stakeholders. This includes participation in oversight matters as requested and required by investors, especially the developmental finance institutions.