Liontrust Responsible Capitalism Report 2022 - Flipbook - Page 9
Governance Framework
The Chief Executive is formally responsible for ESG and Sustainability throughout the
company. The Board regularly discusses ESG matters including climate change and
diversity at Board meetings and addresses specific issues if they arise.
The Board is responsible for Liontrust’s corporate obligations,
including as a United Nations Principles for Responsible Investment
(PRI) signatory and under the various other commitments we have
made on ESG issues such as the Taskforce on Climate-related
Financial Disclosures (TCFD).
Day-to-day accountability for sustainability lies with the Management
Committee. Liontrust has established a Sustainability and Stewardship
Committee (SSC) as a subcommittee to the Management Committee
and a Working Group to support the company in overseeing and
monitoring policies and procedures and address issues as they arise.
ESG investment risk is dealt with by the Portfolio Risk Committee.
Board of Directors
Chief Executive
Ownership and oversight of sustainability approach and policies
Day-to-day accountability for sustainability
Audit and Risk Committee
Meet 4/5 times per year
Remuneration Committee
Meet 3+ times per year
- Financial reporting, risk and internal controls
- 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
Sustainability responsibilities include:
- 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
- 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
Management Committee
Meets 12~ times per year
- Diversity and composition of the Board
Sustainability and
Stewardship Committee
“SSC”
Meet 4+ times per year
- Diversity and recruitment policies of the Group
- 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
- HR policies
- Compliance of the Group with applicable ESG
regulation (e.g. Modern Slavery Act)
- Approving new collective ESG initiatives
SSC Working Group
Meet 6-8 times per year
Sustainability responsibilities to 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
Meet 12+ times per year
Oversees the Group’s investment risk
management framework
- Due diligence of integration of ESG factors in
the Group’s investment processes
- Assessment and management of ESG
investment risks and opportunities in the
portfolio
- Compliance and oversight with applicable ESG
regulation in the portfolio
Liontrust Sustainability Report 2020 - 9