Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.
At Baillie Gifford, we believe that integrating ESG considerations into our research and engagement makes us better investors. ESG factors are naturally aligned with our investment philosophy and time horizon; long-term investments are more likely to be affected by ESG factors. It is important to define integration appropriately with respect to the investment process. Baillie Gifford doesn’t require systematic and explicit inclusion of predetermined criteria across different investment strategies, instead focusing on bottom-up investment analysis to identify sustainable long-term investment opportunities. ESG factors are incorporated where relevant to the sector, geography or company and give us insight into whether threats to sustainability have been fully priced.
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