Signatory since 2011 and A+ rating in 2019 for our responsible investing approach.
Sustainable Responsible Investment
Our long-only investment solutions embrace our firm-wide Sustainable Responsible Investment approach
To achieve Mirabaud’s economic responsibility’s goal of offering a comprehensive range of responsible and sustainable products and services, we aim at delivering high quality products and services, where our customers can be ensured that our investment professionals:
- Avoid investments and transactions in/with companies fundamentally inconsistent with sustainability principles and companies that might pose a financial risk due to their social or environmental challenges.
- Weave Environmental, Social and Governance (ESG) factors into investment processes.
- Partner with companies and stakeholders to improve ESG-related business practices and better allocate capital for the long term.
At Mirabaud, ESG integration is core to our investment activities and reflections. We explicitly interweave relevant and material ESG considerations and financial considerations into investment processes, portfolio construction and research.
More precisely, we aim to proceed to an in-depth ESG analysis of companies we manage in funds and mandates, or recommend for investment to our clients. ESG materiality is at the core of our approach. Financially material ESG factors are factors that could have a significant impact on a company's operations and value drivers, such as revenue growth, margins and risk. We want to understand what material ESG risks companies are facing and how they concretely respond to these risks and opportunities.
Our analysis draws from proprietary internal research we supplement with research from third party data providers.
At Mirabaud, we believe active ownership is a highly effective approach to contribute to good corporate governance and thereby enhances the long term economic and societal value of companies over time. As stewards of our clients' assets, we aim to use our active voice and enter into dialogue with companies on ESG matters to protect and increase the value of our assets. Such dialogue can also enhance our understanding of a company's sustainability, which can be fed back into investment processes.
As active, high conviction investors, our portfolio managers always take a dynamic approach to evaluating and interacting with companies to encourage best practices.
Our investment professionals perform three complementary types of engagement activities:
Company ESG dialogue
An informed, regular dialogue, through which the investment teams understand a company's corporate responsibility policy and identify their exposure to ESG risks and opportunities.
Addressing material ESG issues
Dialogue and engagement on the adoption of best practices on material ESG issues we believe may ultimately benefit the companies, our clients and wider sustainability challenges.
We participate in collaborative engagement initiatives, which are aimed at mitigating investment risks, improving practices and seeking greater disclosure and transparency of information.
Also known as negative screening, exclusion is traditionally considered as one of the primary Sustainable and Responsible investment (SRI) approaches. Some activities, products or services are deemed "controversial' when they pose major and global risks to the environment and the society. Indirectly, such activities also expose investors to severe financial and reputation risks.
Whilst we favour inclusion over exclusion, in line with our values and ESG beliefs, we apply restrictions to sectors and companies involved in controversial activities and facing critical ethical, social and environmental challenges. We also closely monitor ESG-related controversies and sensitive incidents that companies may face in the course of their business activities. Company failures to respond appropriately to controversies may trigger divestment.
In this context, Mirabaud has specific sector guidelines and business restrictions that seek to address those issues. Currently these are:
Companies involved in dedicated research, development and manufacture of controversial weapons [ie. weapons production and trading causing harm and suffering and Subject to international conventions and embargoes]
Companies directly involved in the production of tobacco industry [Constituting more than 5% of revenue]
Companies deriving more than 30% of revenues from thermal coal mining
Climate change challenges induces medium to long-term risks, with a complex quantification of impacts on economic and financial activities. Taking advantage of our role as a financial institution, at Mirabaud, we aspire to identity and manage the impact of climate related risks on our clients' assets. Climate Change considerations are a core dimension of our SRI efforts and as such, we are signatories of the Climate Action 100+, an investor initiative to ensure the world's largest corporate greenhouse gas emitters take necessary action on climate change.
What we look for
- A holistic view of financial and extra-financial performance, looking at all material information, both quantitative and qualitative.
- Research to guide the interactions our portfolio managers have with companies.
- We understand the extent to which ESG issues can impact the long-term value of a firm.
- ESG issues include (and are not limited to) governance and management, resource management, energy efficiency and human capital management.
What we do
- Source, analyse and engage on extra-financial information.
- Explicitly interweave relevant and material ESG considerations and financial considerations into investment processes, portfolio construction and research.
- We have achieved UN PRI A+ rating.
- We adopt the global standard on Proxy Voting through ISS.
In selective private equity strategies, we actively place capital with companies that are seeking sustainable and achievable outcomes.
Impact investing can be seen as an evolution of responsible investing. In addition to integrating environmental, social and governance (ESG) criteria, and excluding certain assets from portfolios, Impact Investing aims at making investments that deliver positive financial returns and a benefit to society at the same time.
Impact investing must have clear, demonstrable and, most of all, measurable objectives.