ESG: A journey not a destination - SPONSORED - Magazine

As winner of
Asia Asset Management’s 2021 Best of the Best awards for Best ESG Engagement Initiative (Hong Kong) and Best ESG Manager in ASEAN, FSSA Investment Managers (FSSAIM) continue to prioritise the integration of environmental, social and governance (ESG) analysis into its investment process by focusing on effective stewardship and good governance. According to Alistair Thompson, director of FSSAIM, it is an approach that entails a particular emphasis on the assessment of quality governance standards of each potential investee company – including past reputation, quality of professional leadership, alignment of interest with the main shareholder, related-party transactions, true independence of board directors, and incentives that drive management teams.

Related Keywords

India ,Hong Kong ,Singapore ,Alistair Thompson ,Samsung Corp ,Financial Group Inc ,Engagement Initiative Hong Kong ,Monetary Authority Of Singapore ,Midea Group ,First Sentier Investors Hong Kong ,Godrej ,Marine Conservation Society ,Mitsubishi Ufj ,Godrej Group ,Securities Futures Commission In Hong Kong ,Asia Asset Management ,Godrej Consumer Products ,First Sentier Investors ,United Kingdom Based ,Futures Commission ,Monetary Authority ,Sentier Investors ,Sponsored As Winner Of Asia Asset Management Amp Rsquos 2021 Best The Awards For Esg Engagement Initiative Hong Kong And Manager In Asean ,Ssa Investment Managers Fssaim Continue To Prioritise The Integration Of Environmental ,Ocial And Governance Esg Analysis Into Its Investment Process By Focusing On Effective Stewardship Good According To Alistair Thompson ,Irector Of Fssaim ,T Is An Approach That Entailsa Particular Emphasis On The Assessment Of Quality Governance Standards Each Potential Investee Company Amp Ndash Including Past Reputation ,Uality Of Professional Leadership ,Lignment Of Interest With The Main Shareholder ,Related Party Transactions ,Rue Independence Of Board Directors ,Nd Incentives That Drive Management Teams Amp Ldquo We Believe Relevant Esg Factors Highlight The Sustainability Ofa Company Rsquos Earnings And Could Havea Significant Impact On Investment Performance Also Quality Companies With Better Credentials Will Generally Merita Higher Valuation Multiple Compared To Weaker May Warranta Discount By Evaluating Can Assess What Might Significantly Improve ,R Indeed Destroy The Investment Case In Terms Of Future Valuations ,Mp Rdquo Explains Thompson Investee Engagement Fssaim Amp Rsquos Ability To Focus On The Long Term ,Thompson Continues ,S Demonstrated Bya Mindset That Affords The Team Amp Rsquos Portfolio Managers And Analysts Ldquo Privilege Of Engaging With Companies Ina Positive Way Rdquo To Help Them Grow Sustainably When It Comes Highlighting Importance Esg ,Is Message Clear Amp Ldquo We View Ourselves As Owners Of Businesses Hellip And With Ownership Comes The Responsibilities Ofa Shareholder Management Teams That Are Receptive To Constructive Criticism Suggestions More Likely Be Good Long Term Stewards They Run Furthermore ,F The Management Ofa Business Does Not Treat Its Stakeholders Fairly ,T Is Onlya Matter Of Time Before They Will Compromise The Interests Minority Shareholders ,Nd We Would Not Invest In Sucha Business ,Rrespective Of How Attractive The Investment Opportunity Might Be Amp Rdquo For Active Managers Such As Fssaim ,Articularly In Emerging Markets And Asia ,Akinga Amp Lsquo Soft ,Udge Nudge Approach Amp Rsquo Overa Hard Stance When It Comes To Dealing With Investee Companies Ndash Many Of Which Are Family Owned Is Paramount Ldquo We Have Demonstrate That Long Term Partners ,Nd We Need To Earn The Right Engage As Long Term Shareholders Their Approach Tells Us About Company Culture And That Is Key Take Away When It Comes Our Engagement ,Mp Rdquo Observes Thompson Just One Example Of Successful Esg Engagement Includes The Team Amp Rsquos Relationship With Investee Company ,He Godrej Group Indeed ,S Far Back As December 2012 ,Ssaim Wrote To Its Chairman Highlight The Growing Need Source Palm Oil More Responsibly ,A Proposal That Was Accepted And Led To Positive Change More Recently In 2019 ,S Plastic Packaging Was Becominga More Serious Issue ,Ssaim Highlighted This And Introduced Them Toa Firm ,Polymateria ,Hich Came Up Witha Solution For Biodegradable Packaging The Ceo Of Godrej Consumer Products Got In Touch With Company And Begana Pilot Program Even Helped Polymateria Get Their Certification India So They Could Scale Solutions ,Otes Thompson Positive Change Fssaim Also Occasionally Collaborate With Similarly Aligned Investment Managers And Asset Owners To Try Effect Ona Larger Scale While These Efforts Tend Be More Targeted Thematic In Nature ,Ne Recent And Ongoing Example Can Be Seen In The Team Amp Rsquos Collaborative Engagement Plan To Combat Microplastic Pollution Drafted By Fssaim Parent Company ,Irst Sentier Investors Fsi ,Nd Uk Based Charity ,He Marine Conservation Society Msc ,He Plan Aims To Encourage Manufacturers Of Domestic And Commercial Washing Machines Fit ,His Standard ,Ilters To Their Products Prevent Plastic Microfibres From Entering Marine Ecosystems The End Goal ,S Thompson Explains ,S To Have Filters Fitted All New Washing Machines By The End Of 2023 Amp Ldquo This Filter Technology Is Currently Available And Relatively Inexpensive ,Ut Is Not Widely Applied Across The Industry Fsi Garnereda Number Of Initial Supporters And We Have Agreed To Lead Engagement Efforts On Two Companies Identified In Screening ,Amely Midea Group And Samsung Corp ,Mp Rdquo He Adds What Is Clear That Active Investors Have The Power To Drive Change Amp Ldquo We Do Not Believe There Are Perfect Businesses Shades Of Grey In Every Business And Once Established Thata Company Investible Will Focus On Darker Areas ,Mp Rdquo Concludes Thompson The Information Contained Within This Document Is Generic In Nature And Does Not Contain Or Constitute Investment Product Advice Has Been Obtained From Sources That First Sentier Investors Amp Ldquo Fsi Believes To Be Reliable Accurate At Time Of Issue But No Representation Warranty ,Xpressed Or Implied ,S Made As To The Fairness ,Accuracy ,Ompleteness Or Correctness Of The Information No Person Should Rely On Content And Act Basis Any Matter Contained In This Document Without Obtaining Specific Professional Advice Neither Fsi ,Or Any Of Its Associates ,Or Any Director ,Fficer Or Employee Accepts Any Liability Whatsoever For Loss Arising Directly Indirectly From Use Of This Document The Information In May Not Be Reproduced Whole Part Circulated Without Prior Consent Fsi Shall Only Used And Received Accordance With Applicable Laws Relevant Jurisdiction Reference To Specific Securities If Is Included Purpose Illustration Should Construed Asa Recommendation Buy Sell Same All Mentioned Herein Form Holdings Fssa Investment Managers Amp Rsquo Portfolios Ata Certain Point Time ,Nd The Holdings May Change Over Time In Hong Kong ,His Document Is Issued By First Sentier Investors Hong Kong Limited And Has Not Been Reviewed The Securities Amp Futures Commission In Singapore ,His Document Is Issued By First Sentier Investors Singapore Whose Company Registration Number 196900420d This Advertisement Or Publication Has Not Been Reviewed The Monetary Authority Of And Fssa Investment Managers Are Business Names Hong Kong Limited 53236800b 53314080c Divisions Logo Isa Trademark Mufg As Defined Below An Affiliate Thereof Part Management ,Hich Is Ultimately Owned By Mitsubishi Ufj Financial Group ,Nc Amp Ldquo Mufg Rdquo ,A Global Financial Group Mufg And Its Subsidiaries Are Not Responsible For Any Statement Or Information Contained In This Document Neither Nor Of Guarantee The Performance Investment Entity Referred To Repayment Capital Investments Deposits Other Liabilities ,Nd Are Subject To Investment Risk ,Ncluding Loss Of Income And Capital Invested ,இந்தியா ,ஹாங் காங் ,சிங்கப்பூர் ,அலிஸ்டர் தாம்சன் ,சாம்சங் கார்ப் ,நிதி குழு இன்க் ,பண அதிகாரம் ஆஃப் சிங்கப்பூர் ,மீடெஅ குழு ,கோதுரேஜ் ,கடல் பாதுகாப்பு சமூகம் ,மிட்‌ஸ்யூபீஶி உப்ஜு ,கோதுரேஜ் குழு ,பத்திரங்கள் எதிர்காலங்கள் தரகு இல் ஹாங் காங் ,ஆசியா சொத்து மேலாண்மை ,கோதுரேஜ் நுகர்வோர் ப்ராடக்ட்ஸ் ,முதல் அனுப்பியவர் முதலீட்டாளர்கள் ,ஒன்றுபட்டது கிஂக்டம் அடிப்படையிலானது ,எதிர்காலங்கள் தரகு ,பண அதிகாரம் ,அனுப்பியவர் முதலீட்டாளர்கள் ,