Liontrust Responsible Capitalism Report 2021 - Flipbook - Page 19
LIONTRUST’S GOVERNANCE AND RESOURCE
Responsible Capitalism is the Group’s platform for its ESG,
sustainability and stewardship-related activities.
Responsible Capitalism team
Liontrust’s six-strong Responsible Capitalism team, led by the
Head of Responsible Capitalism, has a remit to implement the
Group’s Responsible Capitalism strategy across its operations.
The Responsible Capitalism team provides investment teams with
information on material exposures that their investee companies
may face. These material exposures include, but are not limited
to, ESG-related exposures that could impact the prospects of a
company. The Responsible Capitalism team oversees Responsible
Capitalism-related policies (which are approved by the Responsible
Capitalism committee and include the Group’s Environmental policy,
Engagement policy, Proxy Voting policy, Corporate Governance
guidelines, and ESG integration policy); administers Liontrust’s proxy
voting (as agreed with each investment team); reports annually on
Liontrust’s Responsible Capitalism activities; helps to deliver ESG
reporting for the Group and the funds, including reports required
under European and UK regulations; and plans and implements
Liontrust’s net zero commitments across its operations and investment
funds committed to net zero.
Prior to the acquisition of Majedie Asset Management, Liontrust
had a Head of Governance and Stewardship and a Governance
Executive, who specialised in proxy voting. The Majedie acquisition
brought the Head of Responsible Capitalism and also the team’s
ESG Researcher who provides dedicated full-time support to
Liontrust’s Global Fundamental (previously Majedie) investment
team. The Head of Responsible Capitalism has experience in
integrating ESG considerations in investments across multiple asset
classes and has led ESG teams and activities at various other
entities for over 20 years. In Q4 2023, the Responsible Capitalism
team added two new members. These individuals each have over
a decade in investment management, working with companies and
investors on ESG matters and ESG integration into the investment
decision-making process. All six members of this team are female.
The governance of the Responsible Capitalism activities is structured
as follows:
Board
Liontrust’s Board is responsible for those aspects of Responsible
Capitalism relating to the listed company, including ESG-related
reporting and obligations that the PLC has to ESG-related bodies,
such as NZAMi (the Net Zero Asset Managers’ initiative), and
TCFD reporting. It is also responsible for ensuring appropriate
processes and controls are in place across the Group to meet
wider Responsible Capitalism obligations. One of Liontrust’s NonExecutive Directors (NEDs) is designated as the Board member with
specific oversight for Responsible Capitalism.
On a regular basis, the Board receives an update from the Head
of Responsible Capitalism covering the Group’s progress on ESG
integration, Responsible Capitalism-related compliance and reporting
matters, and the overall connectivity between Group strategy and
Responsible Capitalism. These updates primarily take the form of
discussions and are minuted as part of the Board papers.
The Board also receives updates on a regular basis from the Head
of Responsible Capitalism on the Group’s commitment to NZAMi.
This includes the Group’s progress towards achieving net zero for its
business as well as in the investments the fund management teams are
making. The Board is hugely supportive of the Group’s efforts in this
area, as it is a means of risk management and a potential competitive
advantage across the Group’s funds. The Board regularly discusses
the potential impact of climate change on Liontrust’s business and
future strategy, and on the degree to which climate change will
impact Liontrust’s ability to deliver long-term out-performance. (For
more information on Liontrust’s net zero goal, see pages 104–105.)
For its meeting in September 2022, the Head of Responsible
Capitalism submitted to the Board a Responsible Capitalism
strategy paper outlining the main focus areas for Liontrust. This
strategy proposal has the support of the Board and the wider
Group. Future updates from Responsible Capitalism will be based
on these strategy points.
Board members
Liontrust’s Board is comprised of individuals who have experience
covering the breadth of asset management. Members have experience
across the environmental, communications, financial, investment,
operational and leadership spheres.
From time to time, the Board receives updates, informal training,
and/or specific information relating to Responsible Capitalism,
carbon emissions, proxy voting, diversity, consumer duty, cyber
security, whistleblowing, employee training and benefits, employee
mental health and wellbeing, and other topics for which the Board
has requested information or for which it requires updates.
Board committees
The following Board committees oversee aspects of Responsible
Capitalism:
Audit and Risk
Committee
Meets 4/5 times
per year
• Oversees the Group’s financial reporting, risk
framework, and the smooth functioning of internal
controls.
Remuneration
Committee
Meets 3+ times
per year
• Determines Director and senior management
remuneration and the Group’s remuneration
structure. Oversees the link between executive
pay and the management of the Group’s key
exposures, including those that are ESG related.
• Oversees the Group’s tax policy and strategy.
• Responsible for employee incentives and ensuring
the fair remuneration of employees.
Nominations
Committee
Meets 3+ times
per year
• Responsible for diversity, composition, and the skill
set of the Board.
• Oversees diversity and recruitment policies of the
Group.
• Oversees Group HR policies.
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