What is Responsible Investment?Responsible Investment is an approach that incorporates environmental, social and governance (ESG) factors into the investment decision-making process. We believe that ESG issues can materially impact the value of the assets we manage, and that including these factors in our investment analysis can help us to better manage and avoid potential ESG-related risks that may detract from the value of an asset. Such events may be the result of poor environmental and labour practices, or because of poor corporate governance
Looking at ESG factors also helps us to identify investment opportunities, and is a way for our customers to benefit from the growing sustainability trend. Companies that are able to respond to this trend and innovate early will reap the benefits of stronger growth prospects, enhanced operating efficiencies, stronger social licence to operate, enhanced staff retention, lower cost of capital and, ultimately, stronger and longer competitive advantage
Old Mutual plc is a signatory of the United Nations-backed Principles for Responsible Investment (PRI), which is an international network of investors all of who are committed to applying six principles to their investment and ownership decisions. Similarly, Old Mutual Zimbabwe is committed to applying these principles in our investment and ownership practices. We work closely with our South African and international responsible investment colleagues and meet quarterly.
Guided by our Proxy Voting Policy, vote in favour of or against company resolutions tabled by our investee companies at annual general or ad hoc meetings. This is a proactive way for us to encourage best practice when it comes to corporate governance in respect of issues such as executive remuneration and Board composition; as well as the operational aspect of a business, such as environmental and labour policies. You can download our 2019 Proxy Voting Disclosure here.