At Walter Scott, responsible investing is central to what we do and what we believe. We understand that Environmental, Social and Governance factors, as much as financial metrics, determine the long-term success of an investment.  

Responsible

We are entrusted to invest on behalf of our clients over a long-term investment horizon. As such, we have a duty to fully understand each company in which we invest, including its approach to Environmental, Social and Governance (ESG) matters. Our experience has taught us that only those companies that strive towards appropriate ESG standards are likely to prosper over the long term.

Integrated

Consideration of a company’s ESG factors is integral to our investment approach. Given the importance of these factors in determining the long-term sustainability of a business, we do not delegate ESG analysis to a separate team. We believe it is essential that each member of our Research team has responsibility for understanding a company’s ESG profile.

Engaged

Engagement is what we do every day. By actively engaging with a company, we gain a better understanding of its business, including its ESG credentials. It also means we can use our influence as investors to effect meaningful change. We expect every company we invest in to engage on issues of sustainability.

We are members or signatories to a number of select groups that we believe best-represent the industry in pushing for meaningful change or where we feel the educational element will complement our own research in a material way.

Other groups are regularly assessed and we attend events and consider the work of many organisations where for now we have decided against a more formal association.

ESG Library

We want to share our carefully considered thinking and work on ESG matters. Our ESG Library contains our annual and quarterly ESG reports, as well as articles by our Research team and contributions from industry experts, academics and authors.

Stewardship

Engagement

Engagement with companies is an important and integral part of Walter Scott’s investment process. Investing in a company carries with it the responsibility to consider and monitor how the company operates with regard to all stakeholders as well as the environment.

Our Engagement Policy can be accessed through the link below.

Engagement Policy

Recent examples of our engagement with companies can be accessed through the link below.

Engagement Case Studies

ESG Policy

Environmental, social and governance considerations are an important and integral part of Walter Scott’s investment philosophy and process. We believe that investing in a company carries with it the responsibility to consider and monitor how the company operates with regard to all stakeholders as well as the environment. More details can be found in the link to our ESG Policy below.

ESG Policy

Stewardship Codes

The aim of both the UK Stewardship Code and Japan’s Stewardship Code is to enhance the quality of engagement between institutional investors and companies to help improve long-term returns to shareholders and the efficient exercise of governance responsibilities.

Please find below links to our response to both the UK and Japanese Codes.

Response to UK Stewardship Code

Response to Japan’s Stewardship Code

Response to Japan’s Stewardship Code (Japanese)

Shareholder Rights Directive II

The revised EU Shareholder Rights Directive II (SRD II) is designed to facilitate the exercise of shareholder rights, encourage shareholder engagement with companies and set out new requirements for companies. The emphasis is very much on encouraging long-term shareholder engagement which should improve investee companies’ corporate governance and performance.

Shareholder Rights Directive II Annual Report Q4 2019 – Q3 2020