Finsbury Growth & Income Trust plc Environmental, Social and Governance (ESG) & Sustainability
The Board recognises that the most material way for the Company to have an impact on Environmental, Social and Governance (“ESG”) issues is through the responsible ownership of its investments.
It has delegated authority to its Portfolio Manager to engage actively with the management of investee companies and encourage that high standards of ESG practice are adopted.
The Company seeks to generate long-term, sustainable returns on capital. The investee companies which consistently deliver superior returns over the long term are typically established, well-run companies whose managers recognise their impact on the world around them.
In its Responsible Engagement & Investment Policy, the Portfolio Manager states that its evaluation of ESG factors is an inherent part of the investment process. These factors include, but are not limited to: “corporate strategy, operating performance, competitive positioning, governance, environmental factors (including climate change), social factors, remuneration, reputation and litigation risks, deployment of capital, regulation and any other risks or issues facing the business”.
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The Board has delegated authority to the Portfolio Manager to vote the shares owned by the Company that are held on its behalf by its Custodian. The Board has instructed that the Portfolio Manager submit votes for such shares wherever possible and practicable. The Portfolio Manager may refer to the Board on any matters of a contentious nature.
Click here to read the Portfolio Manager’s Proxy Voting Policy
The Portfolio Manager is a Tier 1 signatory of the existing 2012 UK Stewardship Code and has submitted a Stewardship Report to the Financial Reporting Council to become a signatory of the 2020 UK Stewardship Code.
Click here to read the Portfolio Manager’s 2020 Stewardship Report.
The Board does not believe it appropriate to set its own quantitative ESG targets for investee companies at this time. However, ESG issues are discussed at every board meeting.
Additionally, Lindsell Train became a signatory to the UN Principles for Responsible Investment in November 2019.
The Company also complies with the AIC Code of Corporate Governance and has policies in place regarding board diversity, integrity and business ethics.