ESG & Responsible Investment Policy
Gresham Partners is committed to the highest standards of ethical behaviour in its business practices
Gresham recognises the importance of environmental, social and governance (ESG) considerations to its clients and stakeholders and is committed to ensuring responsible ESG practices form part of Gresham’s core business activities.
From an operational perspective, Gresham Partners is committed to conducting its activities in a manner that is environmentally and socially responsible. We aim to conduct our business to the highest legal and ethical standards that would be expected of a leading financial advisory firm in Australia.
Gresham has a robust governance structure in place and comprehensive compliance policies for the Gresham group, which set expectations for the conduct of our staff and ensure Gresham is meeting its legal and compliance obligations as a financial services provider, including in respect of anti-money laundering, bribery and corruption, whistleblowing, professional conduct and diversity and inclusion. These policies and compliance manuals are regularly reviewed and updated by the Board to ensure they remain current and comprehensive. Gresham Partners is also mindful of its environmental footprint in the conduct of its business.
Gresham Partners established a Culture & Ethics Committee in 2017 to assist the Board in promoting appropriate values and ethics and encouraging and implementing effective communication with staff on matters of culture and ethics. Gresham Partners operates under a set of business principles which focus on integrity, respect and excellence and a commitment to our clients and our people. Further, we seek to positively contribute to our community through the Gresham Charitable Giving Committee. Refer to Community Involvement for more information.
In our Funds Management business we operate under a Responsible Investment Policy that incorporates applicable ESG considerations into the investment process. It is our belief that ESG issues and opportunities can affect valuation and financial performance, and the consideration of these factors can deliver better informed investment decisions and investment opportunities for our clients.
In our Corporate Advisory business we seek to carefully evaluate and understand each client’s business, sector and reputation as a company. We work with our clients to create sustainable businesses that will enhance long-term value for shareholders, which often includes assisting clients in the assessment and management of potential ESG considerations and risks.
Gresham Funds Management is committed to maintaining an investment and funds management approach that incorporates applicable ESG considerations
It is our belief that environmental, social and governance (ESG) issues and opportunities can affect valuation, access to capital and financial performance. The consideration of these factors can deliver better informed investment decisions and investment opportunities for our clients.
Our commitment to ESG
Gresham integrates applicable ESG considerations into our decision-making process. We understand that ESG issues do not always clearly tie into value and returns, and the impact of ESG practices may differ across companies, sectors and regions. However, we believe the consideration, understanding and management of ESG issues in conjunction with financial analysis can generate better long-term performance for our clients. Further, where Gresham is in a position to actively engage with investee company management on these issues, we can actively encourage a greater awareness of ESG factors in company performance and assist those companies to create sustainable businesses that drive improved financial returns.
We recognise the growing importance that environmental issues are playing in the global economy. As community standards and expectations around ESG factors continue to evolve, Gresham will need to monitor and assess the potential impact of these changes on its investments.
The investment process
In analysing a potential investment, our funds management professionals are responsible for incorporating into the investment process all factors believed to have a material financial impact, which can include but are not limited to those of an ESG nature. As Gresham manages a diverse range of funds across various sectors, ESG considerations will differ for each fund, with each investment team being responsible for ensuring an appropriate integration of ESG analysis into their individual investment processes.
ESG considerations can cover a broad range of matters, and not all of those matters will be relevant to a particular investment. A number of the following ESG issues may be considered by our investment teams in order to gain a better understanding of the company.
An investment recommendation from our investment teams to their relevant investment committees will cover a wide range of factors, including views on the drivers of company returns, and the potential impact of any applicable ESG issues.
Sector or fund-specific ESG policies may be introduced by Gresham or the relevant funds, with any such policies to take precedence over this Responsible Investment Policy
Whilst Gresham does not automatically preclude our funds from investing in certain sectors as a result of ESG concerns, individual funds are permitted to adopt specific exclusions if appropriate for their investment strategy. As a general matter, Gresham will not seek to invest in companies whose core behaviours are in conflict with Gresham’s own commitment to ethical and socially responsible behaviour.
We are committed to continually improving our approach to ESG integration, particularly as ESG standards and consideration evolve over time. This Policy will be reviewed at least annually with any proposed changes submitted to the Gresham Board for approval.