Cantillon Capital is cognizant that environmental, social and governance (ESG) factors can impact a company's financial performance, their long term returns and hence the fair value of the stock. As a result, we endeavour to integrate ESG issues into our investment analysis and decision-making process. This is achieved through:
1) Detailed stock analysis: Before any stock enters the portfolio, the analyst will conduct an in-depth assessment of the company's future return profile and earnings potential. Any significant ESG issues that could have a material impact on the financial performance or risk profile of the company are typically identified at this stage
2) Annual ESG audit of the portfolio: In collaboration with MSCI ESG Research we conduct an annual review of the portfolio to identify any companies where there is strong evidence of repeated and systematic breaches of international standards and norms with regards to ESG factors
In addition, we incorporate ESG issues into our ownership policies and practices through our proxy voting policy and through engaging in a constructive dialogue with company management.
There are no variations or exceptions to this approach