While we employ a variety of external research and data sets for fact gathering and idea generation, our edge lies in the proprietary interpretation of information derived from both quantitative and qualitative analyses of each company we invest in.
In addition to financials, business strategy and growth catalysts, we believe that core traits such as corporate governance, management quality and the ability to manage Environmental, Social, and Governance (ESG) risks will also have significant implications on a company’s potential business performance.
We believe that a company which prioritises profit at the expense of ESG considerations exposes itself and its shareholders to scrutiny and regulatory risk, which are likely to result in poor business resilience and earnings durability. Hence, our investment teams employ third party ESG research to identify corporate non-compliance with best practice ESG standards. We ensure this is done with complete discretion and independence.
- Access to investee company and overall portfolio and benchmark ESG quality;
- Carbon/climate change analytics for tracking of portfolio and benchmark carbon footprint;
- Climate VAR scenarios that provides forward looking impact on portfolio and benchmark returns;
- Norms screening tool used in incorporating clients’ ESG beliefs.
Separately, please see our Scope 1, 2 and 3 carbon emissions from our business operations in Singapore here.
Appointment of reputable global proxy advisor to ensure prudence in exercising our proxy voting rights and are actively engaged with companies based on materiality of issues to portfolio performance and to encourage best industry ESG practices.
As an Asian investment management specialist with more than US$48 billion under management, Lion Global is cognizant of market inefficiencies and the resulting structural drivers of mispricing opportunities that could be exploited.
Investment opportunities are dictated by our views on material factors within markets, sectors and companies, including ESG.
All credit and stock reviews are required to state the score from appointed third-party ESG data providers, and assess the ESG quality based on information from these providers. Company progress is monitored over time.
Maintain active engagement with invested companies for about 3 years to refine business models, processes, products and more. Escalation policy in place to exit companies which fail to meet ESG expectations after 3 years, and to add them to the non-investable restricted list.