Environmental, Social and Governance Considerations
OC understands our responsibility in managing our clients’ capital. We believe a company’s approach to ESG can evidence long term earnings sustainability and align with the interests of our clients. We believe that ESG considerations can impact the performance and value of investments and should be part of the investment selection process. This is why, since our inception, ESG considerations have been integrated into the investment process and explicitly included in our standard company risk assessments and analysis. As with other risks, ESG risks require constant reassessment and monitoring due to ongoing changes in regulations and the evolution of scientific knowledge and society values.
OC endeavours to consider all material Environmental, Social and Governance issues for prospective investments. OC does not construct our products with the explicit inclusion of investments on purely ESG grounds. ESG considerations may, however, lead to us removing a company from our investment universe or reducing the position size within our portfolio. We take a forward-looking view of ESG assessments, acknowledging that the market is forward-looking and that companies’ positions may change over time.
Our aim is to:
be aware of and monitor the key ESG issues for investments in the portfolio;
be aware of and monitor the key ESG issues for investments suitable for future inclusion in the portfolio;
voice our opinion to management and through our voting (consistent with our voting policy), in any instance where we see a company requiring change in relation to an ESG issue; and
encourage the disclosure by companies of ESG and sustainability issues.
Whether management acts ethically and in the best interests of shareholders
Transparency of a company’s ESG measures
Longevity of the industry structure in which the company operate (environmentally, socially and economically)
Corporate governance track record of the company