Integrating ESG results in better investment decisions
We believe that incorporating material ESG considerations into the investment process can add value which can result in higher risk-adjusted returns for our clientsover the long term.
Engaging with investee entities can be constructive
We recognise that responsible investing requires a patient approach and an understanding that improvement in corporate behaviour can support investor value over time. We believe that companies that adopt sustainable business practices are more likely to deliver superior value in the long-term.
Active Ownership is preferable to exclusion
We believe that hard exclusions from our investment universe should be utilised as a last resort, where ESG risks are insurmountable or where continued engagement is considered ineffective. Rather, seeking change in corporate behaviour through engagement is more likely to have real-world impacts.
Transparency to our clients is
important
We believe that providing transparency on our ESG activities helps our clients understand our priorities and impact.
Active Ownership
Our responsible investment approach is deeply aligned with active ownership activities for risk mitigation and value creation over the long term. As active owners, we leverage on our market exposures and expertise to foster long-term, collaborative relationships with investee companies to deepen collective understanding and tackle material issues including ESG risks and opportunities. We consider engagement and proxy voting as key drivers of active ownership. Votes are cast based on our internal voting policy.
1,601
Total Number of Votable Items
99
%Items Voted
85
%Votes with Management
15
%Votes against Management
Sources:
Eastspring Investments Berhad's proxy voting record of calendar year 2023.
Engagement Case Studies
Engagement with investee companies is core to our active ownership responsibilities. We aim to encourage business and management practices that support positive enhancement of material ESG traits or mitigation of material ESG risks across our holdings. We do this using constructive engagement based on our in-depth knowledge of our investments in the context of their business environment.
ESG Integration
At Eastspring Investments, investment professionals are responsible for incorporating all factors deemed to materially impact the investment decision making process. ESG integration is an essential component of our investment analysis process. Our integration guidelines include a focus on materiality and active ownership.
Listed Companies and Corporates
We seek to identify, assess, and monitor material ESG risks and opportunities. Investment teams integrate ESG issues with material impact into our investment process. Through the ESG integration process, investment teams develop an informed and holistic assessment of a company’s exposure to and management of ESG risks and opportunities.