ESG Integration: Our Approach to Responsible Investing

Our Philosophy

We believe that ESG considerations are not separate from fundamental analysis — they are fundamental analysis. Companies that manage environmental risks, treat stakeholders well, and maintain strong governance are more likely to compound value over the long term.

Integration Framework

Our ESG integration is embedded at every stage of the investment process:

1. Screening — we exclude companies deriving more than 10% of revenue from thermal coal, controversial weapons, or tobacco manufacturing
2. Analysis — every investment thesis includes a dedicated ESG risk assessment alongside traditional financial modelling
3. Engagement — we actively engage with portfolio companies on material ESG issues, voting all proxies in line with our published guidelines
4. Monitoring — portfolio-level ESG metrics are tracked quarterly and reported to investors annually

2025 Engagement Highlights

• Voted on 847 resolutions across 126 portfolio companies
• Engaged directly with management teams on 34 ESG-specific issues
• Successfully advocated for improved emissions disclosure at 3 European industrial holdings
• Joined a collaborative engagement initiative on water stewardship in the semiconductor supply chain

Performance Impact

Our internal research shows that ESG-integrated holdings have outperformed non-integrated positions by approximately 180bps annually over the past three years, with lower maximum drawdowns. This supports our conviction that responsible investing and strong returns are not mutually exclusive.