At EOS IM, we are aware of the impact that our investments have for our investors, for the society in which we live and for the global environment. Therefore, we are creating an investment platform that invests responsibly by analysing in great detail all the ESG (Environmental, Social and Governance) issues that might arise in the investment process. This approach allows us to significantly reduce the risks that we may encounter during our acquisitions and throughout the holding period of the invested companies. This approach is also designed to allow us to achieve increased cost efficiencies and profitability, which will be reflected in the exit price.
When analysing investments in various industries many ESG issues might arise. We take these ESG issues into account in the assessment of our investments and invest when we are comfortable that these requirements are met. Examples of ESG issues that might appear during our investigations include:
- Environmental issues: renewable energy, energy efficiency, biodiversity loss, greenhouse gas (GHG) emissions, waste management, changes in land use, climate change impacts, resource depletion, chemical pollution, depletion of fresh water, nitrogen and phosphorus cycles , stratospheric ozone depletion, and ocean acidification.
- Social issues: human capital management, employee relations, activities in conflict zones, workplace health safety and quality, freedom of association, child labour, slavery, relations with local communities, diversity, distribution of fair trade products, health and access to medicine, controversial weapons, labour standards in the supply chain, and HIV/AIDS.
- Governance issues: bribery and corruption, business strategy, shareholder rights, business ethics, executive benefits and compensation, board diversity, board structure, stakeholder dialogue, lobbying, independent directors, risk management, disclosure and whistle-blowing schemes.
By applying ESG checks we commit to investing in a responsible way on behalf of our investors. The responsible investment strategy is designed to generate long term sustainable growth for the companies we invest in, a positive environmental and social impact, plus solid positive returns for our investors.
Source of ESG Issues list: UNPRI
For more information also please see our UK Stewardship Code