As a bespoke service, we are unable to introduce ESG specific objectives in our portfolios unless requested by the client. However, this does not prevent us from integrating ESG factors into our usual fundamental investment analysis and monitoring ESG risks. We are long term fundamentally driven investors, understanding the ESG factors affecting each company is a part of the process of evaluation of the likely future success of each investment we make. We use a major outside screening service to provide ESG data and insights as a starting point.
The Responsible Investment Policy is set by the Corporate Responsibility and Charities Committee (CRCC) which reports directly to the main Board. Oversight of the policy is the responsibility of the Investment Process Committee. Implementation is the responsibility of the Stewardship and Responsible Investment Group (SRIG).
Though our external screening provider, investment analysts and sector specialists have access to ESG ratings and research which is incorporated into investment recommendations. ESG factors are used to help determine the long term prospects of a company. The bespoke nature of our service means that Smith & Williamson will not screen investments or engage in impact investing/thematic investing, unless directed by the client. Where equity investments are made indirectly, through third party funds, investment analysts complete regular due diligence (we are now able to screen most funds for their ESG rating through our screening provider) as part of the collective investment process. This covers fees, risk management, suitability and membership of the UN PRI and/or the UK Stewardship Code as a prerequisite.