We aim to preserve and grow the real purchasing power of the assets entrusted to us by our clients over the long term. In fulfilling this purpose, we assume a stewardship role, including the effective exercising of our clients’ ownership rights. We monitor, evaluate, and, if necessary, actively engage or withdraw investments, with the aim of preserving or adding value to our clients’ portfolios.
This report provides examples of how we are integrating ESG considerations into our investment process within different teams, as well as the engagement, advocacy and voting we carry out across the world.
Disclose how we discharge our stewardship duties through publically available policies and reporting.
Address internal governance of effective stewardship including conflicts of interest and potential obstacles.
Support a long-term investment perspective by integrating, engaging and escalating and monitoring material ESG risks and opportunities.
Exercise our ownership rights responsibly, including engagement and voting rights.
Where appropriate, act alongside other investors.
Integrating ESG into how we allocate capital is an important focus for us. This section highlights our ongoing work to deepen ESG integration across the different strategies through the integration programmes. These programmes allow us to create accountability and clear objectives for the investment teams and a way to map progress.
Together with stakeholders across the industry we have been analysing the wide reaching implications that climate change and the Sustainable Development Goals (SDGs) have on society, the environment and the economy.
The wide-ranging implications of climate change have placed a particular focus on the role and stance of the finance industry towards this issue. This past year saw a number of developments that emphasised our role as active owners. We are committed to:
The 17 Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development asks all countries to “mobilise efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind.” We are looking to understand, map, and translate the SDGs into a measurable and quantifiable framework in three areas.
|Business-wide||Private markets||Public markets|
|Investing for a positive impact on society and the environment.||Mapping the SDGs to both the Africa Infrastructure and the Africa Private Equity funds allows us to measure and target the contribution of investment projects to the SDGs.||We are considering mapping and scoring approaches that will bring together an understanding of sovereign SDG priorities.|
Source: Investec Asset Management, ISS ProxyExchange. Data is for the 12 months to end March 2018.
The ESG team is a global team of ESG experts from a diverse set of backgrounds, with academic and professional expertise across a broad range of ESG areas. Currently a team of seven, they work closely with the investment teams to support the integration of ESG into the investment process, provide a focus for active ownership and facilitate research and learning.
Over the 2017-2018 reporting period the ESG team focused on:
In the coming year the team plan to deepen integration within these frameworks and strengthen our engagement efforts.
Here are the personal highlights of the year from each team member:
Investments carry the risk of capital loss.
This material is for informational purposes only and should not be construed as an offer, or solicitation of an offer, to buy or sell securities. All of the views expressed about the markets, securities or companies reflect the personal views of the individual fund manager (or team) named. While opinions stated are honestly held, they are not guarantees and should not be relied on. Investec Asset Management in the normal course of its activities as an international investment manager may already hold or intend to purchase or sell the stocks mentioned on behalf of its clients. The information or opinions provided should not be taken as specific advice on the merits of any investment decision. This content may contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, new legislation and regulatory actions, competitive and general economic factors and conditions and the occurrence of unexpected events. Actual results may differ materially from those stated herein.
All rights reserved. Issued by Investec Asset Management, July 2018.