Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 126
MANAGEMENT OF RESPONSIBLE CAPITALISM-RELATED RISKS
Key RC related risk
Steps taken to mitigate this risk
Loss of people and talent
During 2023, Liontrust expanded its Senior
Leadership programme to include a second and
third cohort for leadership training. It has also
offered coaching to staff, will start an internship
programme in summer 2024, has expanded its
DEI programme, and offers employees a number
of competitive benefits.
Overall success of these steps in 2023
Successful
and
Ongoing
Sub-optimal client servicing
The Group continues to offer clients outstanding
service. It has improved its reporting and
communication via its video and written insights,
website and presentations. Liontrust continues to
seek client feedback and action points raised
through Consumer Duty panels, client surveys,
directly and through the website
Successful
and
Ongoing
Instances of discrimination, poor
compensation, outsourcing problems,
or health and safety breaches
Liontrust strives to be a responsible company
and investor, respecting human rights, paying its
employees fairly, and ensuring that health and
safety assessments are completed, as required.
Successful
and
Ongoing
Regulatory, Compliance, Conduct and
Financial Crime
Liontrust worked diligently in 2023 to keep up
with regulatory and reporting changes, including
those in the ESG Sustainability -related space.
The Group has oversight of its conduct and any
potential risks relating to financial crime.
Successful
and
Ongoing
Fraud, cyber security breaches, market
manipulation
Cyber security is the responsibility of all Liontrust
employees. All staff undertake regular cyber
security training. The Group’s compliance team
keep a log of conflicts of interest and of risks,
more generally – these are managed and
regularly reviewed. Employees are also required
to clear any trades for personal accounts in
advance of trading, helping to minimise this
exposure.
Climate-related risks
While over the short to medium term Liontrust does not have high
exposure to climate change-related risks (compared to the exposure
it has in other areas), the Group does have exposure to different risks
related to climate change and global warming. These exposures are
outlined in Liontrust’s TCFD report which is published on Liontrust’s
website and referenced in the Liontrust Asset Management PLC
Annual Report and Financial Statements for FY 2022/23.
The Group will report on these exposures in its TCFD entity level
report which will be published on Liontrust’s website by end June
2024 and in its upcoming annual report and financial statement
for FY 2023/24.
126 - Responsible Capitalism Report 2023
Successful
and
Ongoing
Integrating climate risk into Group risk frameworks
Liontrust’s prudential risk statement regarding climate-related risks
states that the Group continues to work on integrating climate risk
into Group-risk frameworks. It has introduced various scenarios
into its annual internal capital adequacy and risk assessment
(ICARA) to simulate the impact of climate change on its prudential
risk requirements and resources. To date, the Group’s climate risk
modelling does not directly undertake climate scenario testing.