We believe that a strong ESG company profile typically, if not always starts with the "G" - i.e. Governance. Good corporate governance is typically anchored with good company managements. A good corporate governance foundation is the key steppingstone to a good ESG profile. In order for companies to improve their Social and Environmental agenda they require, first and foremost, a robust Governance framework.
ESG factors make a difference and we believe that there is no conflict between returns and sustainability. We believe that sustainable and responsible investments are drivers for higher, longer term returns at a lower risk. Understanding ESG information leads to a better understanding of a company's sustainability profile and ESG considerations can therefore be material in the investment decision making process.