Environmental, Social and Governance

SG Hiscock & Company has had a formal board-endorsed environmental, social and governance (ESG) policy since 2010. Our policy articulates our approach to integrating ESG considerations into our investment decisions, our business, culture and daily operations. It incorporates the key principles of the Australian Council of Superannuation Investors, as well as the framework provided under the Principles for Responsible Investment. SG Hiscock & Company is a responsible investor and we take an active approach to integrating ESG considerations into our investment decision-making process. We believe that the effective governance and management of business risks has a direct impact on a company’s intrinsic value over the long term and helps to reduce investment risk.

As an investment manager, SGH recognizes the role we can play in supporting and influencing the impact of ESG issues, whether it be through our active engagement with companies or our investment decisions. We believe that over time, good ESG practices deliver both direct and indirect impacts on shareholder value and provide a broader public community benefit.

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. In making this commitment, we will incorporate ESG considerations including consideration of ACSI and PRI guidelines where appropriate, in line with our investment approach and size.

 

SGH became a signatory to the UN-supported Principles for Responsible Investment (PRI) in April 2021.

Integrating ESG risks into our investment process

Stephen Hiscock, Chairman and Managing Director

“We’ve seen companies that display strong sustainable investing practices or sustainable practices, they tend to perform well over time. So there’s a shareholder benefit as well from this.”

“As professional investors, we have a social responsibility to all stakeholders of companies that we invest in.”

Angus Graham, CEO – DMP

We recognised many years ago that there was a shift in thinking around what asset owners were looking for from their investments. … Being an active member the UNPRI, demonstrates to our clients and companies we are serious about sustainable investing…”

 

Hamish Tadgell, Portfolio Manager – SGH20

“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.”

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.”

Stratton Bell, Portfolio Manager – DMP Enhanced Income Trust
“In our view it comes down to one simple question, “Is this company sustainable over the long term across social, environmental and governance?” If it’s not then it’s not worth investing in.”

Callum Burns, Director and Portfolio Manager – SGH ICE
“We invest in companies that have a sustainable competitive advantage.”

Tim Gough, Portfolio Manager – Individually Managed Accounts
“Whilst we have policies and procedures in place to ensure we manage our clients’ assets appropriately, what’s more important is actually how we live ESG in our day to day environment.”