Global events over the last three years have illustrated how unpredictable the world can be. Rather than fearing uncertainty, we embrace it, as uncertainty often presents opportunities to find well-hidden or misunderstood investments that allow us to add value to our clients’ portfolios. Key to us finding the right investment opportunities is understanding the environmental, social and governance (ESG) risks, at both an issuer and macro-economic level.
At Allan Gray Botswana, we have always considered ESG factors as part of our investment process, as we believe that this improves investment returns, better manages risk and assists our clients to act as responsible owners. We have been following this approach since Allan Gray was established in 1973.
We believe that good stewardship of our clients’ capital requires truly active ownership. We engage frequently and meaningfully with company boards and management teams and think critically about how we recommend our clients vote at company shareholder meetings. In addition, we actively partake in initiatives that promote sound corporate governance and sustainable business practices.
In this four-part Stewardship Report series, we publish articles that aim to offer more insight into how we think about ESG factors at Allan Gray and our view of the sustainability landscape in Botswana. This field has become increasingly topical the world over, including in Botswana, as more and more investors realise the critical role ESG factors play in ensuring the future sustainability of firms.