Stonehorn Global Partners proudly reflects sustainability in its products and services that we provide to our clients globally by adherence to our Corporate Governance and Responsible Investment Policy.

We integrate Environmental, Social and Governance (ESG) factors into our investment process and we seek to be a signatory of the United Nations Principles for Responsible Investment (UNPRI).

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.

Principle 5: We will work together to enhance our effectiveness in implementing the Principles.

Principle 6: We will each report on our activities and progress towards implementing the Principles.

We are committed to actively supporting the global responsible investment initiative and encouraging our invested companies and partners to adopt similar mindsets.

The core fundamental principle in this corporate governance and responsibility policy is based on our fiduciary duty to protect the interests of our clients. We act as a trusting partner for our clients when protecting their investments and equally we expect companies we invest in and partners with which we work to share in having a clearly defined and transparent corporate governance model. Stonehorn takes an ongoing active ownership approach where we focus continuously on the changing aspects of companies in which we invest to protect our clients’ interests in the long run.

Investment Practices

We believe that a company’s long-term fundamentals can be affected by ESG issues from both protecting our investors from a risk and also from an investment return perspective. This is ingrained into our investment process and decision-making process.

We take into account all publicly available information on ESG factors when we perform our analysis and when making investment decisions. We will integrate our own internal methodology in assessing ESG from engaging with the company, industry consultants, third-party research and data providers.

Engagement

Our view is we are not just a shareholder in the businesses in which we invest. We are owners of the businesses on behalf of our clients and therefore have a responsibility to act as long-term stewards of these companies. We will meet with our companies to understand their business and strategy in corporate governance. We actively promote best practices in each of the business’ ESG policy with a long-term interest for investors.

We will commit to reviewing with our companies at least annually on their ESG policy. While we do not attempt to be activists, we will simply choose not to invest in a company if we do not see the right mindsets in our investment companies.

Corporate Governance

Sound governance starts with a board that has the right skills, incentivization structure for management, and monitoring of risks. Our understanding of corporate governance requires analysis of, but is not limited to, the below values:

1. Board composition

2. Auditor

3. Shareholders rights and proposals

4. Executive remuneration

We continually monitor changes to corporate governance in invested companies and seek companies that have transparent, strong business models with a well-balanced management team.

Environmental

We will consider the risks the invested companies pose to the environment as part of their business activities. We are committed in addressing these issues to reduce environmental impact and climate related changes. We encourage our partners and investment companies to work towards low carbon emission.

Voting

We will vote at all meetings for all our investment companies. We will vote collectively in the same way across all our portfolios and mandates unless where practical, specific clients have given instructions for their specific portfolios. Our principles in voting are to follow the best interest of our clients and to incorporate long-term sustainability investing in-line with industry best practices.