Responsible Investing

The benefits of sustainable investing

As a responsible investor, we believe integrating sustainable, environmentally friendly practices into our day to day activities delivers tangible benefits, creates additional opportunities, benefits society and reduces risk. We believe that such an ethical approach leads to follow on opportunities and improved financial returns especially when the true costs of increasingly scarce natural resources are considered.

Our approach

Our transaction teams and our investee companies strive to implement sustainability in the context of social, environmental, governance and financial best practice where they can have the most impact. We achieve this through;

  • Consciously seeking out opportunities in green business, and rigorously applying our environmental, social and corporate governance (ESG) criteria from the outset
  • Continuously nurturing a broad understanding of the processes and issues relevant to sustainable development
  • Knowledge sharing of sustainable best practice with our investee companies
  • Encouraging the adoption of suitable solutions and practices throughout the investment cycle
  • Working in partnership with stakeholders and local communities
  • Our combination of sector expertise, investment experience and local knowledge

United Nations Principles for Responsible Investment Signatory

In support of our sustainability policy, LCI is also a signatory to the United Nations Principles for Responsible Investment ("UNPRI"). As a fund manager, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that ESG issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and through time). We also recognise that applying these Principles may better align investors with broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to the following:

  1. We will incorporate ESG issues into investment analysis and decision-making process.
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the Principles within the investment industry.
  5. We will work to enhance our effectiveness in implementing the Principles.
  6. We will report on our activities and progress towards implementing the Principles.

The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.

In signing the Principles, we as investors publicly commit to adopt and implement them, where consistent with our fiduciary responsibilities. We also commit to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment activities with the broader interests of society.

 

Governance

As a cornerstone of our investment criteria, this aspect is rigorously assessed at the highest level by our Senior Management team. As part of our screening and due diligence process, team members will consider an opportunity's sustainability impact before an investment can be authorised. Thereafter, we will work closely with portfolio companies, examining progress on sustainability issues during periodic progress reviews until transaction exit.

At all times LCI aspires to the highest of standards, continuously learning to ensure our activities have a positive impact and promote sustainability in all its forms.