Governance is considered prior to every investment decision.
Because the investment strategies have different approaches to how they use ESG data we have made the active decision not to have a standardised approach across all teams. There is a significant risk that it would generate superficial research and a box-ticking approach that wouldn't add to the quality of the investment research. We feel this is a fundamental difference in our approach to ESG at Baillie Gifford and highlights how seriously we think about governance and the long term sustainability of the companies we invest in on behalf of our clients.
We take the approach we do because it is right for our organisation and our clients. The long term growth and sustainability of the companies we invest in is critical to performance, portfolio turnover numbers and ensuring we provide our clients with the service we've agreed to.