Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 37
considerable change following the Group’s acquisition of Majedie
Asset Management. The internal audit was undertaken to ensure,
among other things, that correct oversight is in place for Responsible
Capitalism; that the team is effectively working to evidence Group
statements on ESG integration; that ESG, sustainability and
stewardship-related policies are robust and reflect what the Group
is doing and says it does; and that the team is sufficiently resourced
for its purpose. The Responsible Capitalism team, along with other
Group departments, worked with the internal auditor to help facilitate
the review. Findings from the audit were due in Q1 2023.
Audit of Liontrust’s key ESG metrics
Liontrust engaged KPMG LLP to perform independent limited
assurance over certain metrics of its gender diversity, proxy voting
and GHG Scope 1 & 2 information for the calendar year 2022.
Specific metrics in scope for limited assurance are detailed in the
KPMG Limited Assurance report on page 128. The
symbol
throughout this report denotes specific metrics assured.
Compliance and sign-off
For all client, investor and stakeholder communications, Liontrust
has a sign-off process through its Compliance and/or Legal teams.
These processes are followed for all information that the Responsible
Capitalism team produces for external consumption to ensure that
information is correct, that reporting standards are met, and the
correct compliance procedures are followed.
Internal annual review of materials
In Q1 each year, the Responsible Capitalism team undertakes a
review of its proxy voting guidelines and related policies. Updates to
these were made in 2022 (and in 2023 before publication of this
report). All updates and changes are approved by the Responsible
Capitalism Committee and seen by the Board members that attend
the Responsible Capitalism Committee meetings – namely, the Chair
and the Board member with oversight for Responsible Capitalism.
Other Board members attend the Committee meetings as they see fit.
In 2022, due in part to the acquisition of Majedie and the changes
that were put in place for Liontrust’s Responsible Capitalism team,
this team gathered together the information on the ESG components
(if any) that each of Liontrust’s investment teams uses. A listing and
summary of these components within the context of each team’s
investment process formed a large part of the Group’s Responsible
Capitalism report covering April 2021 to March 2022. Similarly,
this Responsible Capitalism report includes these components; an
update on the investment teams’ processes and ESG components
(where applicable) can be found on pages 40–91. Liontrust aims
to be able to evidence the teams’ use of the components that each
details for the benefit of investors.
Rationale for this approach
Liontrust has internal compliance and sign-off to ensure adherence to
required regulations and laws regarding marketing and providing
information to clients, investors and wider stakeholders. The Group
feels these processes and systems effectively monitor and ensure
adherence to requirements. Liontrust employed the help of external
auditors to ensure that its internal systems are functioning well and to
understand how the Group can improve these, if at all, going forward.
External reporting on Responsible Capitalism-related activities
Liontrust reports in a number of ways during the year on its Responsible
Capitalism activities, which cover ESG, sustainability, and stewardship.
A description of the reports that Liontrust produces for clients on these
areas can be found on pages 102–103 in this Report.
Ensuring fair, balanced, and understandable reporting
Liontrust makes every effort to ensure that its reporting, factsheets,
marketing materials, and communications with clients, investors
and stakeholders are accurate. The Group aims to communicate
in language that is clear, relevant, engaging and useful. Liontrust
undertakes internal and external audits, research and tests
communications to understand what is effective and is well received
by clients and investors.
Improving stewardship
Continual oversight and review of Liontrust’s Responsible Capitalism
activities and reporting help ensure that the Group integrates ESG
considerations in its investment processes (where applicable),
engages with holdings (as per each team’s investment process),
votes its proxies (as required), and communicates clearly on each
step of the process. Both internal and external audits ensure the
Group is aware of any Responsible Capitalism or stewardship
related areas that could improve and also serve to give the Group
assurance that it is utilising best practice across these areas.
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