Oversight of ESG integration and responsible investment resides with LBA's Management Committee and, ultimately, with its Board of Directors, who set the risk, integrity and compliance culture of the firm.
All portfolio managers and analysts are responsible for ensuring that each material ESG consideration is incorporated into the analysis and selection of each investment, investigating material environmental, social and governance risks and opportunities facing companies in their coverage universe, and including such issues in each investment thesis presented to the investment committee. Specialization by global industry sector facilitates our industry experts’ understanding of the business models, economic context, issues and trends that are most material to each sector within an international framework.
In addition, to ensure that all key ESG issues and controversies are captured, a dedicated investment professional (“ESG Lead”) conducts an independent verification by reviewing third-party ESG research to ensure that every material issue is discussed and understood by the investment committee. The ESG Lead also conducts a semi-annual review of all investee companies.
We consider ourselves to be long-term partners of our investee companies, and over the years LBA has developed a very strong culture of engagement. Transparent and candid discussions with company management teams on all relevant issues, including ESG issues, are consistent with our investment philosophy and essential to our in-depth research process.