STANLIB’s approach to Environmental, Social and Governance factors
STANLIB’s ESG principles
STANLIB believes that ESG is a material investment consideration
ESG forms a material element in driving risk adjusted returns for our clients. As stewards of their funds and to deliver on client financial outcomes we believe that the consideration of sustainability is essential to value creation and capital protection.
STANLIB integrates ESG factors into the investment process
Active ownership means careful consideration of ESG factors in the investment process across all our investment capabilities. This ensures that we understand the related risks associated with investment opportunities.
STANLIB favours active engagement
Our preferred approach to dealing identified ESG concerns is to actively engage business stakeholders to effect change. We believe engagement with boards of directors, company management, and key stakeholders is a powerful tool to drive optimal outcomes for our clients. However, if engagement and discussions with the relevant stakeholders does not yield the desired outcome we are willing to disinvest of an investment.
There are also instances in which STANLIB will outright exclude investment in a particular company where there is no confidence that management actions will resolve the outstanding ESG issues. This would include companies undertaking activites deemed illegal.
STANLIB exercises its ownership rights
STANLIB exercises voting rights in the best interests of our clients. Our policy on proxy voting sets out our voting guidelines.
STANLIB is prepared to collaborate where it drives desired outcomes
We are open to collaboration where we believe the collective efforts of all relevant stakeholders around an ESG topic are more likely to result in a positive outcome for our clients. Such instances would include engaging with investee companies in which we have a relatively small holding or joining other shareholders and stakeholders to influence change.
STANLIB communicates its responsible investing activities
STANLIB communicates its policies and responsible investing activities through the publication of policy documents, proxy voting reports and reporting on key engagement activities.
STANLIB applies ESG oversight to its investment capabilities
STANLIB believes that to ensure the appropriate outcome for clients we need to monitor and challenge investment professionals on ESG issues. Our governance structures ensure accountability, tracking and measurement of ESG related issues including potential conflicts of interest.