Capital at risk

Investment strategy

Sustainable Growth

We believe that investors don’t need to choose between making a profit and making a difference for society. In fact, the two can be mutually reinforcing. We call this a virtuous circle. Our team seeks rare firms that can grow earnings at a double-digit rate for over a decade, enhancing their ability to contribute positively to people, planet and prosperity.

Aurora Borealis. as viewed from space.

A broad view of sustainability

We observe sustainability through a wide-angle lens. We believe companies can create value for society through what they do or how they do it. This gives us a broader opportunity set and enables us to build a more diversified and resilient portfolio. A portfolio that is sustainable in both senses of the word, seeking enduring growth that delivers enduring good.

Sustainable Growth: owner's manual

Investment managers Toby Ross and Katherine Davidson discuss our principle that investing in companies which deliver enduring good could also deliver enduring growth.

Seeking out rare firms

Sustainable Growth has a single financial objective: to add material value for our clients over the long term. We believe the best way to achieve this is by investing in a diverse portfolio of sustainable companies and holding them for the long term (by which we mean a decade, ideally longer).  

Doing so lets the power of compounding work its magic and allows time for the all-important intangibles to be reflected adequately in share prices. Ultimately, we aim to deliver a portfolio our clients can be proud of, both for its sustainability credentials and its financial returns. 

Investing to make a difference

We seek to invest in companies that make a difference in one of two ways:

  • what they do – products or services that have a clear positive impact
  • how they do it – business practices that help to shape industry standards and inspire wider change

Our framework lays out how companies are contributing to one of three broad themes: people, planet or prosperity.  

For full transparency we present our portfolio according to these classifications in all communications with our clients. 

We want to invest in businesses that are resilient and in control of their own destiny financially – those that make their own weather.
Toby Ross

Meet the managers

Documents

Philosophy and process

Explore our investment philosophy and the processes around how the team constructs the portfolio.

Quarterly update

Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting. 

Owner's manual

Read about the beliefs, principles and purpose driving our investment managers.

Net zero alignment commitment

We are committed to investing in a way that is aligned with a scenario which limits global temperature increases to 1.5C.

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Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

30 April 2024

#
1TSMC3.8%
2MercadoLibre3.5%
3Illumina3.3%
4Beijer, G & L AB3.2%
5Alphabet3.1%
6Atlas Copco2.9%
7Recruit Holdings2.8%
8UnitedHealth Group2.8%
9Texas Instruments2.7%
10Mastercard2.7%

Strategy holdings by region

30 April 2024

1North America48.50%
2Europe (ex UK)24.00%
3Emerging Markets10.70%
4Developed Asia Pacific9.60%
5UK6.40%
6Cash0.70%
100%

Strategy holdings by region

30 April 2024

: 100%

Please note

The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.

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Making a difference

Our clients want a portfolio they can be proud of, both for its investment returns and for the benefit it delivers for society. We believe companies can make a difference in one of two ways, either through what they do or how they do it. We invest in firms with products or services that have a clear benefit to society, or where leadership in business practices helps shape industry standards and inspire wider change.

Illustration of blue and gold fractal pattern of spheres on a black background.

Sustainability report

Sustainability means different things to different people. We commit to full transparency so that our clients can assess how their values align with ours. In our 2023 Sustainability Report we show how portfolio holdings are helping tackle the biggest challenges facing society today; challenges of people, planet and prosperity. We also include case studies of the year’s most notable engagement activity, analysis of company alignment with the UN’s Sustainable Development Goals and the results of our annual climate audit. 

People, planet, prosperity

For every prospective holding we try to understand which of the world’s biggest problems the company is addressing, this could relate to people's welfare, the planet’s condition or broadening prosperity. Within each of these, a diverse set of sustainability themes gives our clients a clearer picture of how the companies they invest in are making a difference. Learn more about this in our Sustainable Growth stock cards.

Sustainable Growth stock cards

Explore why we invest in some of our largest holdings.

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Curious to learn more about our products and what we can offer you? Please get in touch.

Insights

Key articles, videos and podcasts relating to the strategy:

Filters

  1. Sustainable Growth Q1 update

    The Sustainable Growth Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video12 minutes
  2. Moderna: designing drugs on a computer

    Can scientists meet unmet health needs by writing code to help the body heal itself?
    January 2024
    Article4 minutes
  3. Enduring good

    What values are important to you? And are they reflected in your investments?
    January 2024
    Article9 minutes
  4. Sustainable Growth Q4 update

    The Sustainable Growth Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video11 minutes
  5. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  6. A net zero initiative update

    A reflection on Baillie Gifford’s commitment to the climate transition.
    November 2023
    Article
  7. Sustainable Growth Sustainability Report 2023

    Reviewing the difference companies make to the challenges of people, planet and prosperity.
    October 2023
    Document
  8. Sustainable Growth Q3 update

    The Sustainable Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video12 minutes
  9. The secrets of enduring growth

    Toby Ross reveals the four signs that a company’s growth might endure for decades.
    August 2023
    Article9 minutes
  10. Sustainable Growth Q2 update

    The Sustainable Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video15 minutes
  11. Sustainable Growth Q1 update

    Sustainable Growth Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video18 minutes
  12. Sustainable growth: an introduction

    ESG investing is broken. Changing our approach could open up opportunities for better returns.
    March 2023
    Video45 minutes
  13. Sustainable Growth: Investing for society

    We think investing long-term in companies that benefit society gives us the best chance of outperformance.
    January 2023
    Article
  14. Sustainable Growth: owner's manual

    How investing in unique companies which seek to benefit society in the long run could bring significant rewards.
    January 2023
    Video8 minutes
  15. Sustainable Growth Sustainability Report

    The Sustainable Growth team on climate change, carbon emissions and sustainable growth companies.
    August 2022
    DocumentLong read
  16. Fuelling the energy transition

    Active investment and engaging with companies aid the energy transition to a low-carbon future.
    March 2021
    Article14 minutes
  17. Scale as a service

    Companies become more efficient as they grow. In the past, that involved big capital outlays and was bad news for challengers. However, as Gary Robinson explains, entrepreneurs can now rent the essential tools from cloud platforms, enabling them to compete more easily.
    September 2020
    Document

Sustainable Growth Q1 update

The Sustainable Growth Team reflects on recent performance, portfolio changes and market developments.

Related insights

  1. Sustainable Growth Q1 update

    The Sustainable Growth Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video12 minutes
  2. Moderna: designing drugs on a computer

    Can scientists meet unmet health needs by writing code to help the body heal itself?
    January 2024
    Article4 minutes
  3. Enduring good

    What values are important to you? And are they reflected in your investments?
    January 2024
    Article9 minutes
  4. Sustainable Growth Q4 update

    The Sustainable Growth Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video11 minutes
  5. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  6. A net zero initiative update

    A reflection on Baillie Gifford’s commitment to the climate transition.
    November 2023
    Article
  7. Sustainable Growth Sustainability Report 2023

    Reviewing the difference companies make to the challenges of people, planet and prosperity.
    October 2023
    Document
  8. Sustainable Growth Q3 update

    The Sustainable Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video12 minutes
  9. The secrets of enduring growth

    Toby Ross reveals the four signs that a company’s growth might endure for decades.
    August 2023
    Article9 minutes
  10. Sustainable Growth Q2 update

    The Sustainable Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video15 minutes
  11. Sustainable Growth Q1 update

    Sustainable Growth Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video18 minutes
  12. Sustainable growth: an introduction

    ESG investing is broken. Changing our approach could open up opportunities for better returns.
    March 2023
    Video45 minutes
  13. Sustainable Growth: Investing for society

    We think investing long-term in companies that benefit society gives us the best chance of outperformance.
    January 2023
    Article
  14. Sustainable Growth: owner's manual

    How investing in unique companies which seek to benefit society in the long run could bring significant rewards.
    January 2023
    Video8 minutes
  15. Sustainable Growth Sustainability Report

    The Sustainable Growth team on climate change, carbon emissions and sustainable growth companies.
    August 2022
    DocumentLong read
  16. Fuelling the energy transition

    Active investment and engaging with companies aid the energy transition to a low-carbon future.
    March 2021
    Article14 minutes
  17. Scale as a service

    Companies become more efficient as they grow. In the past, that involved big capital outlays and was bad news for challengers. However, as Gary Robinson explains, entrepreneurs can now rent the essential tools from cloud platforms, enabling them to compete more easily.
    September 2020
    Document

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.