At Stonehorn Global Partners we believe in everything that we do, in all that we represent, and with all our fiduciary powers and responsibilities we invest for a more sustainable economy. We believe in the sustainability revolution. We balance social, environmental and economic factors in the decisions that we make. We believe, this enables us to thrive and contribute to the health and growth of communities. We believe that fiduciary powers are not a barrier to investing sustainably but rather an opportunity.
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.
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.
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.
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
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.
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.
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.
The Principles are voluntary and aspirational. They offer a menu of possible actions for incorporating ESG issues:
Address ESG issues in investment policy statements.
Support development of ESG-related tools, metrics, and analyses.
Assess the capabilities of internal investment managers to incorporate ESG issues.
Assess the capabilities of external investment managers to incorporate ESG issues.
Ask investment service providers (such as financial analysts, consultants, brokers, research firms, or rating companies) to integrate ESG factors into evolving research and analysis.
Encourage academic and other research on this theme.
Advocate ESG training for investment professionals.
Develop and disclose an active ownership policy consistent with the Principles.
Exercise voting rights or monitor compliance with voting policy (if outsourced).
Develop an engagement capability (either directly or through outsourcing).
Participate in the development of policy, regulation, and standard setting (such as promoting and protecting shareholder rights).
File shareholder resolutions consistent with long-term ESG considerations.
Engage with companies on ESG issues.
Participate in collaborative engagement initiatives.
Ask investment managers to undertake and report on ESG-related engagement.
Ask for standardised reporting on ESG issues (using tools such as the Global Reporting Initiative).
Ask for ESG issues to be integrated within annual financial reports.
Ask for information from companies regarding adoption of/adherence to relevant norms, standards, codes of conduct or international initiatives (such as the UN Global Compact).
Support shareholder initiatives and resolutions promoting ESG disclosure.
Include Principles-related requirements in requests for proposals (RFPs).
Align investment mandates, monitoring procedures, performance indicators and incentive structures accordingly (for example, ensure investment management processes reflect long-term time horizons when appropriate).
Communicate ESG expectations to investment service providers.
Revisit relationships with service providers that fail to meet ESG expectations.
Support the development of tools for benchmarking ESG integration.
Support regulatory or policy developments that enable implementation of the Principles.
Support/participate in networks and information platforms to share tools, pool resources, and make use of investor reporting as a source of learning.
Collectively address relevant emerging issues.
Develop or support appropriate collaborative initiatives.
Disclose how ESG issues are integrated within investment practices.
Disclose active ownership activities (voting, engagement, and/or policy dialogue).
Disclose what is required from service providers in relation to the Principles.
Communicate with beneficiaries about ESG issues and the Principles.
Report on progress and/or achievements relating to the Principles using a comply-or-explain approach.
Seek to determine the impact of the Principles.
Make use of reporting to raise awareness among a broader group of stakeholders