Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.
Lennox recognises that ESG encompasses a broad range of issues which may have material impact on the risk and return of our investments and is explicitly assessed as part of Lennox’s investment decision-making process. All companies that Lennox considers for in-depth fundamental research must first pass a qualitative screening process that specifically measures and assesses a company’s governance structure and the environmental and social consequences of its business. Lennox recognises that ESG issues will change over time so regularly examines the following issues:
Environmental factors: Impact on local environment and risk management, carbon intensity and consequent exposure to carbon pricing, climate change, water supply and management, waste disposal, pollution and contamination, natural resource use and degradation, and energy use and renewal energy generation.
Social factors: Corporate culture and conduct, occupational health and safety, human rights and child labour, workplace relations and working conditions, community impact and engagement, workplace diversity and supply chain management.
Governance structure: Board independence and diversity, employee remuneration, bribery and corruption, shareholders’ rights, conflicts of interest, corporate accountability and compliance.
Lennox believes a company’s operations are unsustainable if they cause irreparable damage to the environment, workplace or end consumers, and will not knowingly invest in such companies.
Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]