We explicitly and systematically include Environmental, Social and Governance (ESG) issues in investment analysis and investment decisions, where these are meaningful to risk and potential return. At a portfolio level, our investment decisions include consideration of all material factors, including ESG factors, and we also conduct regular ESG reviews of portfolios.
We believe that the consideration of ESG factors is a much more complex and nuanced process than simply screening out companies or industries perceived to be unsavoury.
Engagement and voting
We undertake constructive engagement with management of companies and organisations that aims to better understand ESG strengths and weaknesses and, where appropriate, encourage better ESG practices.
To build on this analysis and engagement activity, we are developing a voting approach that integrates an assessment of climate performance more structurally into our voting decisions for all companies.
Consistent structure; flexible implementation
At M&G we do not impose ‘top down’ house views and we do not manage by consensus. Indeed, individual investment teams have the autonomy, flexibility and experience to design and implement investment processes in a manner they consider most appropriate to their investment strategy and their customers.