Environmental, social and governance (ESG) considerations

The Company’s purpose is to support UK investors to fulfil their longer-term financial goals through the effective delivery of its investment objectives, namely by providing financial capital to support growing, innovative businesses across the UK.

The Company regards the development of a clearly defined and integrated ESG management system as an important pillar for the long-term success of its business, as well as for its investee companies.

Our approach to ESG

Managing a successful, long-term and sustainable business for the benefit of shareholders depends on effective engagement with a variety of stakeholders, as well as the management of a wide range of environmental, social and governance factors.

The operational success of the Company is dependent on its suppliers and, in particular, key suppliers such as the Investment Manager and the Administrator, running efficient operations underpinned by sustainable business models.

The Investment Manager believes that companies with strong governance, sustainable business models and balanced workforces are more likely to create value over the long term whilst reducing investment risk, benefiting the wider UK economy and society and generating positive shareholder returns.

ESG in the investment process

Holding meaningful stakes in investee companies provides the Investment Manager with the opportunity and responsibility to positively influence investee company behaviour, both at the point of investment and during the time in which the Company is a shareholder.

Due diligence

The Investment Manager assesses ESG factors across both public and private qualifying companies and uses the information provided to develop an individualised ESG risk map to identify issues and track behavioural themes. The Investment Manager regularly engages with senior management teams and boards to identify and raise issues of note, provide a forum for positive feedback and promote change where necessary.

Exclusions and divestment policies

As part of its investment strategy, the Company has adopted policies covering exclusions and divestment to describe behaviours that fall outside of the Company’s expectations of investee companies. The Investment Manager has adopted an engagement policy to create a clear framework that defines how it will interact with investee companies.

The Investment Manager

The Investment Manager adheres to its own ESG investment and stewardship policies. These include an ESG Policy, an Engagement Policy, a Conflicts of Interest Policy and a Stewardship Policy that, together with the investment mandate and the Company’s ESG approach, informs the Company’s approach.

CGAM is a signatory of the United Nations Principles of Responsible Investment (UN PRI) and HMT’s Women in Finance Charter.

Please visit About us for further information on the Investment Manager.