EXAMPLE PAGE - ANNUAL REPORT - LIONTRUST - Flipbook - Sida 13
Governance Framework
The Chief Executive is formally responsible for ESG and Sustainability throughout the company.
The Board of Liontrust Asset Management PLC regularly discusses
ESG including the climate crisis and diversity and addressing
specific issues as they arise. The Board is responsible for Liontrust’s
corporate obligations, including as a United Nations Principles
for Responsible Investment (PRI) signatory and the various other
commitments we have made on ESG issues such as the Taskforce
on Climate-related Financial Disclosures (TCFD). Sophia Tickell,
Non-Executive Director, has vast knowledge and expertise in ESG
issues within asset management.
Day-to-day accountability for sustainability lies with the
Management Committee. In 2020, Liontrust established a
Sustainability and Stewardship Committee (SSC), a subcommittee
of the Management Committee, and a Sustainability and
Stewardship Working Group to drive the adoption of sustainability
throughout the business, support the company in overseeing and
monitoring policies and procedures and address any issues as they
arise. The ESG Regulation Working Group was also established
during the year to ensure our applicable funds were best placed to
comply with the Sustainable Finance Disclosure Regulation (SFDR),
AMF Disclosures and other regulatory requirements. The Portfolio
Risk Committee is driving the integration of ESG investment risk into
the day-to-day monitoring processes of Liontrust’s funds. The Risk
team are integrating climate models into the capital stress testing
processes used by the Board.
Board of Directors
Chief Executive
Ownership and oversight of the sustainability approach and policies
Day-to-day accountability for sustainability
Audit and Risk Committee - Financial reporting, risk and internal controls
Meet 4/5 times per year
- Oversees the assessment and management of
ESG issues and risks, including those related to
environmental legislation and regulation, climate
change, governance and compliance and reputation
Management Committee
Meets 12~ times per year
- Assessment of regulatory and compliance risks,
including financial crime and bribery
- Oversees the approach to tax policy and strategy
- Assessment of operational risks, including cyber
security and people risks
- Director and senior management remuneration
and Group remuneration structure
- Review of incident management, business
continuity and disaster recovery plans
- Employee incentives and remuneration
- Oversees the implementation of fair remuneration
for employees
Nominations Committee
Meet 3+ times per year
- Assisting the Chief Executive in setting the Group’s
strategy, including its sustainability aspects
- Human rights and employment legislation
- Oversees the group risk frameworks, including the
integration of ESG factors
Remuneration Committee
Meet 3+ times per year
Sustainability responsibilities include:
Sustainability and
Stewardship
Committee ‘SSC’
- Diversity and composition of the Board
- Implementation and management of the Responsible
Investment Policy and the Group’s other Sustainability
related policies such as the Environmental Policy and
the Corporate Social Responsibility Policy
- Approval of the Group’s voting and engagement
policies
- Diversity and recruitment policies of the Group
- HR policies
- Compliance of the Group with applicable ESG
regulation (e.g. SFDR, Modern Slavery Act)
- Approving new collective ESG initiatives
SSC Working Group
Meet 6-8 times per year
Sustainability responsibilities include supporting the SSC
in the:
- Assessment and management of tools used to assess
ESG risks and opportunities
- Development of voting and engagement plans
- Drafting the UN PRI report and the Sustainability
report
Portfolio Risk
Committee (PRC)
Meet 12+ times per year
Oversees the Group’s investment risk management
framework:
- Due diligence of the integration of ESG factors
in the Group’s investment processes
- Assessment and management of ESG investment
risks and opportunities in portfolios
- Compliance and oversight with applicable ESG
regulation in portfolios
ESG Regulation
Working Group
Meet 12+ times per year
Oversees compliance of ESG regulatory
requirements, such as Sustainable Finance
Disclosure Regulation (SFDR), Shareholders Rights
Directive II (SRDII) and EU Taxonomy regulation
Liontrust Sustainability Report 2021 - 13