Baillie Gifford recognises that owning a company's shares on behalf of clients confers certain rights and responsibilities. As active managers, a key part of our investment strategy is to assess the quality of company management, in particular management attitudes to shareholders. When combined with financial information, ESG-related business information can provide a valuable insight into the overall quality of management. Given that significant environmental, social and governance (ESG) issues play out over the medium to longer term, and that our clients are invested for the longer term, it is important that we consider companies' approaches to ESG issues on a case by case basis. We research and engage with companies on ESG issues. Stewardship is an important responsibility associated with share ownership.
The policy identifies governance, environmental performance, climate change, labour, bribery and corruption, supply chains and stakeholder relations as factors we consider.