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Responsible Investment

Responsible Investment

We define responsible investment in line with the UN PRI definition: a strategy and practice to incorporate environmental, social and governance (ESG) factors in investment decisions and active ownership.

We incorporate ESG factors into all our equity strategies and embrace the stewardship responsibilities which we assume as investment managers.

UN Principles for Responsible Investment

As a PRI signatory, we commit to the following:

  • We will incorporate ESG issues into investment analysis and decision-making processes.
  • We will be active owners and incorporate ESG issues into our ownership policies and practices.
  • We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  • We will promote acceptance and implementation of the Principles within the investment industry.
  • We will work together to enhance our effectiveness in implementing the Principles.
  • We will each report on our activities and progress towards implementing the Principles.

 

In our latest Assessment Report, reflecting our Responsible Investment Activity in 2023, we received the following scores:

  • 4/5 - Policy Governance and Strategy
  • 5/5 - Direct - Listed Equity - Active Fundamental
  • 5/5 - Confidence Building Measures
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We define responsible investment in line with the UN PRI

ESG Incorporation

In managing our strategies, fundamental data and rigorous research have always been the cornerstones of our investment process. This has included considering the impact of environmental, social and governance factors, which has evolved over time as more relevant data has become available. We believe that incorporation of ESG factors – for which we use both proprietary quantitative scoring on ESG factors and qualitative analysis when selecting investments – enables us to enhance rather than fundamentally alter our investment process.

Stewardship

As we manage our clients’ assets to deliver on their mandate we assume a stewardship role. In representing our clients’ interest in relation to the investments made on their behalf, we recognise the responsibilities that go with ownership, and the related rights. We apply the 12 Principles of the UK Stewardship Code (laid out by the Financial Reporting Council).

 

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Our Approach at Guinness Global Investors

Engagement

We maintain a programme of engagement with investee companies at the firmwide, strategy and collaborative levels.

Voting

Proxy voting and the consideration of corporate governance issues are important elements of the portfolio management service that we provide. Our portfolio managers are empowered to make voting decisions which they believe are in the best interest of our underlying clients, based on their own research informed by (but not delegated to) third-party research providers.

Initiatives

At Guinness we understand participation in relevant industry initiatives is essential to the development of best practice in Responsible Investment. We participate in several initiatives in order to promote proper functioning of markets, better our understanding in the area and contribute to the industry. The initiatives we participate in are as follows.

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TCFD

TCFD

The Task Force on Climate-related Financial Disclosures (TCFD) seeks to improve the availability of information needed for climate-related risk management. By being a supporter, we are part of the effort to promote informed capital allocation.

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We define responsible investment in line with the UN PRI

UN PRI

UN PRI – As part of Guinness’s commitment to Responsible Investment, we became a signatory of the United Nations Principles for Responsible Investment in 2019.

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UK Stewardship2021

UK Stewardship Code

Stewardship Code – The UK Stewardship Code 2020 sets high stewardship standards for those investing money on behalf of UK savers and pensioners. It comprises a set of 12 ‘apply and explain’ Principles for asset managers and asset owners to demonstrate their Stewardship role and performance. Our Report can be found here.

The section below contains our latest policies and reporting documents.

 

Document

Stewardship Code Report | 2023

Engagement Policy

Responsible Investment Report 2023

TCFD Aligned Climate Report 2023

Guinness Q2 2024 Voting Report

H1 2024 Voting Results

Responsible Investment Policy

Voting Policy

Good Governance Policy

Exclusion Policy

SFDR Remuneration Disclosure

Our Approach to Remuneration - Guinness Global Equities

Responsible Investment Factsheets

FUND 
GUINNESS ASIAN EQUITY INCOME FUND/
GUINNESS BEST OF ASIA FUND/
GUINNESS CHINA A SHARE FUND/
GUINNESS EMERGING MARKETS EQUITY INCOME FUND/
GUINNESS EUROPEAN EQUITY INCOME FUND/
GUINNESS GLOBAL ENERGY FUND/
GUINNESS GLOBAL EQUITY INCOME FUND/
GUINNESS GLOBAL INNOVATORS FUND/
GUINNESS GLOBAL MONEY MANAGERS FUND/
GUINNESS GREATER CHINA FUND/
GUINNESS SUSTAINABLE ENERGY FUND/
GUINNESS SUSTAINABLE GLOBAL EQUITY FUND/