There is no single way to define sustainable investing, but for us as a firm, we believe that sustainable investing is to have a holistic approach to investments. We believe that companies that understand their role in the community and advocate for a best practice approach to their business operations, as well as with how they conduct themselves in matters regarding the community, generate long-term excess returns for investors.
Screening for environment-related non-financial metrics allows us to identify businesses that have a reduced impact on the natural world. Assessing impacts such as carbon emission, resource consumption, land use, and more.
Screening for society or community-related non-financial metrics allows us to identify businesses that act more responsibly with stakeholders outside of direct shareholders. Assessing impacts such as ethical business practices, community engagement, employee welfare, and more.
Screening for governance-related non-financial metrics allows us to identify businesses that have more robust policies and practices implemented to enhance company performance and reduce exposure to governance risks. Assessing areas such as corporate governance, anti-corruption policies, management of stakeholders, and more.
At it is core we distill ethics to a simple dichotomy to whether an action or activity is right or wrong. We understand the complexities of declaring something as right or wrong but we believe it is observable in our Australian community that people understand, in principle, what society accepts as something morally right or morally wrong. These unconscious beliefs throughout the Australian community form social expectations of right and wrong based on principles of reciprocity, kindness, mutual respect, and fairness.
Many people believe that investing in ethical products will come at the expense of performance on your investment. We are here to tell you that it is quite the contrary. Investing in businesses that take into consideration more stakeholders and non-financial risks when making investment and business decisions outperform other businesses in the long run. It’s time for you to invest in a product that provides greater opportunities for increased wealth creation.
Value Investment Partners believes that climate change is a major systemic risk, one which not only has serious implications for people and the environment but will have major financial impacts. We believe that these realities will have material impacts on even a well-diversified portfolio, and believe it is our responsibility as the stewards of our client’s capital, in our goal of capital protection, to monitor and predict the impacts of climate change on our portfolios. In our themed investment products, we also pivot the security selection to invest in businesses that are contributing in a meaningful way to the transition to the green economy allowing you to support and benefit from businesses assisting the transition to a net-zero economy.
*Refer to each individual themed products’ ESG metrics policy statement for definitions and revenue exposure limits.
We have a clear set of beliefs as investment professionals and our vision is to protect and create wealth for our investors by proactively managing portfolios of transparent, well managed, easy to understand, and undervalued investments, all of which follow a rigorous investment management process that aims to protect wealth and minimise investment risks in volatile times.
