Environmental, Social and Governance (ESG) issues span our investment universe. Whether it be the impact of increasing carbon legislation on fossil fuel companies or director remuneration in the banking sector, as long-term active managers we need to ensure that we are assessing the issues that are relevant, not just to the companies we invest in, but to the world as a whole.
Our dedicated Governance and Sustainability Team works with our fund managers to assess ESG concerns both before and after we invest in a company.
As long-term investors, we seek to build relationships with investee companies and therefore management attitudes to shareholders are important to us. We look to engage with management to discuss topics directly related to the investment case. That might include everything from strategy, capital management and board composition, to remuneration, environmental impact and reputational risk.
Adherence to EFAMA Stewardship Code
Baillie Gifford, as an asset manager and a member of the European Fund and Asset Management Association (‘EFAMA’), adheres to the EFAMA Stewardship Code. A full document detailing compliance with the EFAMA Stewardship Code will be available at the end of January 2019.