As an investment manager, SG Hiscock & Company Limited (SGH) recognises the role we can play in supporting and influencing the impact of ESG issues in our investment process. Over time, good ESG practice delivers both direct and indirect impacts on shareholder value and provides a broader public community benefit.
As Active Owners, SGH acknowledges that we can have a positive impact via active engagement with companies and investment decision making. We may engage with companies on material ESG issues and report on our activity over time.
The SGH Group is pleased to share our first Sustainability Report.
Read more >> Sustainability report 2022
Corporate ESG Integration
Integrating environmental, social and governance (ESG) considerations into our business activities and operations.
Environment
Social
Governance
The Un Principles for Responsible Investment are a voluntary and aspirational set of investment principles. They are available at unpri.org/pri. The number of PRI signatories total in excess of 3,000 organizations – spanning investment managers, asset owners and service providers from 60 countries and representing about US$100 trillion in assets. The PRI works with its international network of signatories to put the six Principles for Responsible Investment into practice. Its goals are to understand the investment implications of environmental, social and governance issues and to support signatories in integrating these issues into investment and ownership decisions. Signatories complete a full annual transparency report which is reviewed and scored by PRI. The Assessment Report is designed to provide feedback to the signatories to support them in their ongoing learning and development in this regard. More information about PRI and its assessment reports can be found on the following website: unpri.org/signatories/reporting-and-assessmentresources.
SGH became a signatory to the UN-supported Principles for Responsible Investment (PRI) in April 2021.
Environment
Opening statement…
Climate change
SGH is committed to achieving carbon neutral operations by October 2023. We have partnered with Ark Resources to assist us with this process commencing with the development of a carbon inventory and emissions assessment. We have developed some simple strategies to reduce our impact on the environment. You can read more about this process in our Sustainability Report.
Paris Agreement…
TCFD…
Social
We aim to foster an inclusive workforce, provide opportunities for individuals to deliver their best and engage our people as we collaborate towards business improvement.
Supporting our community
As well as sitting on external investment committees for a number of not-for-profits, every year we select a new community organisation to support – by a process of staff nomination. Over the years we have made positive contributions to a variety of organisations that are important to us, including: John Fawcett Foundation, Scope, UNHCR, Monash Health Foundation, Asylum Seeker Resource Centre, Berry Street, headspace, FightMND and Pancare Foundation.
Diversity & Inclusion Read more >>
This year we are supporting GO Foundation. GO Foundation’s scholarship program provides access, opportunity and wrap around support for Indigenous students to ensure their journey through school is as rich and rewarding as possible. GO provides scholarships from primary school to university, in public and independent schools, to students who live with family, in community and on country.
Governance
Opening statement…
SGH Board
The SGH Board of nine experienced Executive and Non-Executive Directors meets at least quarterly.
ESG Committee
The purpose of the ESG Committee is to assist the Board in fulfilling its oversight responsibilities with regard to the Responsible Investment activities of the SGH Group. The ESG Committee works with other Board Committees to assist the Board in fulfilling these responsibilities and reports to the SGH Board on a six monthly basis.
Audit & Risk Management Committee
The SGH Audit & Risk Management Committee provides assurance and assistance to the SGH Board in respect of the SGH Group’s risk oversight and management, internal controls, governance and audit. The Committee reports to the Board on a quarterly basis.
Proxy Voting
Engagement
Portfolio Level ESG Integration
Integrating environmental, social and governance (ESG) considerations into our investment strategies.
Approach
SGH is committed to embed ESG considerations into our investment decision practices where the timeframe incorporated in the investment philosophy of the relevant fund is consistent with the medium to longer term nature of ESG factors. The approach to ESG integration by each investment team depends upon a range of factors including the asset class, investment time horizon and the research philosophy and process used by that team. Investment teams utilise their professional skill and judgment in assessing the materiality of ESG-related risks and opportunities as appropriate for each investment strategy.
SGH High Conviction
Summary of approach
Hamish Tadgell, Portfolio Manager
SGH High Conviction Fund
“ESG is really about how companies are managing what I would say 21st century business risks.”
“There’s a lot of empirical evidence that shows that companies that manage ESG risks better over the long term create more value for shareholders.”
“As professional investors, we have a social responsibility to all stakeholders of companies that we invest in.”
SGH AREITS
Summary of approach
Grant Berry, Director and Portfolio Manager
AREITs
“We believe that companies that adopt good ESG practices and procedures, and importantly embed it in their culture will drive superior outcomes.”
SGH Future Leaders Fund (Opportunities)
Summary of approach
Link to ESG video or PM quote.