Edinburgh based privately owned asset management firm Aubrey Capital Management has announced that it has signed the United Nations-supported Principles for Responsible Investment (PRI).
The decision was made to join the PRI to supplement Aubrey’s existing ESG investing activities. The ESG analysis the firm currently adopts is based on the UN Global Compact. As part of this process, Aubrey aims to identify companies that can generate sustainable returns while engaging with the companies directly on their ESG performance.
The firm uses a bespoke in-house generated ESG framework where companies are assessed on their performance, specifically their vulnerability to material risks. Aubrey engages with management teams to mitigate these risks while encouraging them to improve their ESG reporting. It focuses its analysis on four themes:
- Human Rights: Companies should respect the internationally declared human rights laws.
- Labour: Elimination of discrimination in the workplace as well as all forms of forced labour.
- Environment: Encourage companies to develop and create initiatives that promote sustainability.
- Anti-Corruption: Businesses should eliminate corruption in all forms, including bribery.
The fund managers, including the analysts, also travel internationally to conduct on-site visits. Their findings are then documented and considered during the ESG analysis process.
Aubrey Founding Partner and Director Sharon Bentley-Hamlyn, says: “While ESG assessment of companies in our portfolios has been a core part of Aubrey’s internal investment analysis and decision making process for many years, becoming a signatory of PRI is a public declaration of support for its goals and a commitment to fully discharge our stewardship responsibilities as fiduciaries of client assets.”
Fiona Reynolds, CEO of the PRI, says: “In joining PRI as a signatory, Aubrey Capital Management recognises the importance of incorporating ESG factors into its investment and ownership decisions. We are pleased to welcome the organisation as a signatory, and look forward to working with the team.”